Tài liệu Khối Ngành Kinh Tế

Potential/ordinary shares are securities or other financial instruments issued by a corporation that have an option for the holder to convert the security into common shares This conversion could have a negative or dilutive effect on EPS (i.e., may cause EPS to decrease) Examples: debt and equity instruments that are convertible into common share...

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Example of non-financial derivatives: contract to buy steel at a specified date for a specified price Are purchase commitments (executory contracts) “derivatives”? Value changes with value of the underlying No investment up front Settled in future

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No amounts may be distributed unless corporate capital is maintained intact Under the CBCA: There needs to be sufficient capital after the dividend to pay liabilities as they are due The realizable value of the corporate assets does not fall below the total of the liabilities and the stated and legal capital for all classes of shares Formal app...

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Financial liability is any liability that is a contractual obligation to either: deliver cash or other financial assets to another party, or to exchange financial instruments with another party under conditions that are potentially unfavourable to the entity Measurement rules are significantly different based on whether the liability is conside...

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Prepaid asset can be recognized only when an entity has paid for goods before delivery (or other access rights), or for services before receiving/using those services Prepaid assets represent the right to receive goods/services, and no longer exist once those goods/services are received (asset is de-recognized)

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Depreciation method determines the systematic allocation of the depreciable amount over the asset’s useful life Depreciation should reflect the pattern of benefits expected from the use of the asset Additional considerations for choosing a particular depreciation method include simplicity, cost, as well as perceived economic consequences Depreci...

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Avoidable Borrowing Costs To qualify for capitalization, the costs must be directly attributable to a project Must be avoidable borrowing costs Steps taken to calculate the borrowing costs to capitalize: Step 1: Determine the expenditures on the qualifying asset Step 2: Determine the avoidable borrowing costs on the asset-specific debt Step 3...

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Deferred Payment Contracts Assets, purchased through long-term credit, are recorded at the present value of the consideration exchanged When no interest rate is stated, the cash price of the purchased asset is used to determine imputed interest rate Interest expense is recognized over the term of the deferred payment contract

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Amortized cost model for investments in debt securities of another entity: Recognize cost of investment at fair value (plus direct transaction costs) Report at amortized cost as well as interest receivable (unless impaired) Recognize interest income as earned, and also amortize any discount/premium by adjusting carrying amount of investment W...

48 trang | Chia sẻ: huyhoang44 | Ngày: 24/03/2020 | Lượt xem: 543 | Lượt tải: 0

The retail inventory method of calculating inventory is used for these reasons: To permit the calculation of net income without a physical count of inventory As a control measure in determining inventory shortages To control quantities of merchandise on hand As a source of information for insurance and tax purposes

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