Hanna Aliakseyenka, Chapter 17
Loss on Impairment
Fair Value Adjustment
Unrealized Holding Gain
Unrealized Holding Loss
Cost is the charges applicable to acquiring or production of goods for sale.
Product cost is applied to inventory. These are charges for acquiring and delivering of goods. Period costs are attributed to
1. Operating activityadd to net income.
2. Operating activitydeduct from net income.
3. Investing activity.
4. Financing activity.
5. Reported as significant noncash activity.
e, f, k
a, c, h, j
a) Asset Turnover
b) Profit Margin
c) ROA 1)
Loss on Impairment
GAAP have substantial authoritative support. It is composed of a mixture of over 2,000 documents that have been
developed over the last 70 years or so. It includes APB Opinions, FASB Standards, and AICPA Research Bulletins.
Exchange rates predictions
The value of the Canadian dollar will be fairly volatile against the US dollar in 2016. It appreciated
relatively quickly in the first quarter, as growth in the Canadian economy is likely to have outstripped
that in the US. But
A defined contribution plan specifies the amount of payments made into employees contribution plan.
The employer doesnt bear any risks and responsibilities besides for making specified regular payments.
A defined benefit plan means that th
a. Liability for purchase should be recorded either when goods are received (FOB destination) or when shipped by
the seller (FOB shipping point).
b. Salaries accrued should be recorded at the date when the financial statement is prepared.
Yield = Market = Effective rate the actual rate that bondholder earns.
Nominal = Stated rate percentage of the par value of the bond.
Discount on bond payable arise when there is a higher interest rate in the market. So the issuer has to
Chapter 19, week 6.
Pretax financial income is reported on income statement and is profit before paying income tax. Taxable income i
A future taxable amount increases taxable income and A future deductible amount decreases it. A valuation ac
1. (1) Capitalized leases with unguaranteed residual value do not include it in the lessees minimum
(2) Guaranteed residual value affects capitalized amount of asset. The lease liability will consist
of both residual value
Week 2, Chapter 13
Determinable current liability is a specific occurred liability with known date of payment, amount and payee. Examples are
A contingent liability is an obligation that is not occurred yet. It's existence is dependent on various cir
Q3. There are two lease accounting methods: operating and capital lease. Under operating method the ownership stays
expense. Under capital lease method, owner's rights and responsibilities are transferred to the lessee, who recognizes th
Week 9, Chapter 20,
Service cost represents the actual accrued present value of pensions payable at employees retirement.
Prior service cost are amendments made to pension plan and allocated to previously accrued pensions.
Week 1, Chapter 13
Q 1. A current liability is to be paid out of current assets or by creating another current liability, usually within
one year or operating cycle. A long-term debt is other liabilities that are not qualified to be current.
Q 12. Unearne
Deferred taxes are reported in asset or liability section and classified as current or non current.
The loss carryback permits the company to transfer operating loss to previous two years and get refund for income taxes pa
loss up to
Operating items relate to the principal activity of the company, they generate main revenue and constitute regular expense
P. BRIDE COMPANY
Cost of goods sold