136C Notes: 2/15/11
-About regrades for the last exam:
Signed piece of paper with signature, reference to the answer key, recognize that grade can go down up as well as down
Have until next Thursday, 2/24/2011, to turn in and submit for regrades.
Add a sh
2/3/11 136C Notes
-*Capitalization criteria for the lessee and the lessor are the SAME
>Look at whether or not the ownership qualities have been transferred.
>Operating lease v Capital Lease:
*Renting a car for a day, for example, is an operati
Cumulative Net Beginning Unrecognized Actuarial G/L
[Cumulative: Measuring all of the gains and losses, and net them, too.
Generally, it evens itself out.
beginning: Something to notice, everythign we do with pension expense is
based on beginning of the y
136C Notes - 1/18/10
Today's Reading: Pg 1063-1067
Go to the actuary with all of the information and let them allocate what they think the cost is
going to be. Things change from year to year, so the actuary wants information every year.
136C Notes 1/13/11
Defined Contribution Pension Plans
*Saves income taxes
>When you PV it back, the effecitive tax rate Is LOW
*Easy accounting and taxes
*Still subject to social security tax
*Loyalty it can fluctuate a lot up an
Company that sells a so.ware package sold to a buyer
Sale price: 100,000
Sale date 7/1/1 (Year 1)
> So.ware + 5 years of service (support) as well as installaGon
(So.ware and installaGon at 6/25
2/3/11: 136B Notes
*Bonds issues 12/31/07 with a face value of $100,000
*Principal due 12/31/10
*Interest payable annually, beginning 12/31/08, at a stated rate of 7%
*Effective Interest Rate was 6%
*On 3/31/09, $60,000 face value of bonds
1/25/2011 136B Lecure Notes
*From loss contingencies (ie: lawsuits)
>Accrue if probable and estimable
>F/N disclosure if loss is at least reasonably possible
*Dont Accrue for general business risks.
>dont accrue for potential losess
136B 1/13/11 Notes
1) Specifically Identifiable Intangibles with Definite Lives
*Test for impairments when indicated by circumstances.
Step 1: Screening/Recoverability Test:
>Compare CV of intangible to est. future undiscounted cash flows
2/8/11: 136C Notes
-Discount rate for the Lessee: Implicit Interest Rate vs Incremental Borrowing Rate
If you know the FMV of the property now and at the end, as well as the term of the loan and
the payment you can figure out the implicit interest rate in