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1. Losses on discontinued operations a. Each amount should be reported in the period it occurred 2.

Change from FIFO method of inventory weighted average a. Adjustment to RE i. Cumulative effect of a change in accounting principle is shown as an adjustment to beginning RE ii. Cumulative effect of a change in accounting principle is now presented as a separate category on the RE statement and is not a component of net income 3. F/s of all prior periods presented should be restated when there is a change in entity such as resulting from: a. Changing companies in consolidated f/s b. Consolidated f/s vs previous individual f/s i. Cumulative-effect adj are reported in the RE statement in the year of change ii. IFRS does not discuss the accounting for changes in reporting entity 4. Infrequent in occurrence but not unusual in nature a. Presented separately as a component of income from continuing operations when the transactions results in a gan or loss 5. The operating losses to be included in Y1 I/S would be the total Year 1 operating losses, regardless of whether those losses occurred before or after the date the decision to dispose of the component was made, and not any Y2 operating losses. Projected operating losses are not anticipated and accrued. 6. Correction of an error in the f/s of a prior period a. Reported net of tax in the current statement of RE as an adjustment of the opening balance 7. A change in estimate is handled prospectively. No cumulative effect adjustment is made and no separate line item presentation is made on any f/s. a. If material change is being made, appropriate footnote disclosure is necessary 8. General and admin expenses a. Accounting and legal b. Officers salaries c. Insurance 9. Freight in Cost of inventory 10. Freight out Selling expense. 11. Sales salaries selling expense 12. The cumulative effect of a change in accounting principle equals the diff between RE at the beginning of period of the change and what RE would have been if the change was applied to all affected prior periods, assuming comparative f/s are not presented.

Beginning RE of the earliest year presented is adjusted for the cumulative effect of the change. 13. Cash basis error a. Prior pd adjustment resulting from the correction of an error 14. Change in account principle a. Shown in adjustment to beginning RE 15. Impairment loss recognized in year in which the component is classified as HFS 16. A change in depreciation method a. Both a change in method and change in estimate i. Change in estimate and handled prospectively ii. The new depreciation method should be used as of the beginning of the year of change and should start with the current book value of the underlying asset iii. No retroactive calculations should be made, and no adjustment should be made to RE 17. Financial statements of all prior periods presented should be restated change in entity a. Resulting from i. Changing companies in consolidated f/s ii. Consolidated f/s vs previous individual f/s 18. Restatements required for changes in entity (of subsidiaries) 19. The correction of an error in the f/s of a prior pd should be reported a. Net of tax, in the current statement of RE as an adjustment of the opening balance 20. Changes in estimates affect only the current and subsequent periods (not prior periods and not RE) 21. Cost of inventory, freight out selling expense 22. Under IFRS, the reporting of gains/losses as extraordinary is prohibited 23. Sell of fixed assets report in net concept (selling price carrying amount) 24. Exit and disposal activities include costs to terminate a contract that is not a capital lease a. Capital lease termination costs are accounted for separately from exit and disposal activities 25. An entitys commitment to an exit or disposal plan, by itself, is not enough to result in liability recognition a. A liability is only recognized when all of the following criteria are met i. An obligation event has occurred ii. The event results in a present obligation to transfer or to provide services in the future iii. The entity has little or no discretion to avoid the future transfer of assets or providing of services 26. The single-step i/s include a. Total revenue of all sales of goods, services, and rentals.

b. Purchase discounts are not included in revenue, but instead reduce COGS c. The recovery of accounts written off does not hit the revenue account 27. Only related party transaction that would req disclosure a. Loans to officers since outside ordinary course of business b. Officers salaries, officers expenses and intercompany sales (b/w entities included in a consolidated set of f/s ) i. Transactions in the ordinary course of business and generally would not require disclosure 28. Disclosure of accounting policies, a. The format and location of accounting policies are not fixed by GAAP 29. Officers expenses are not realted transactions a. Incurred in the ordinary couse of business b. Not considered to be compensation 30. Significant estimates disclose when it is reasonably possible (not probable) a. Reasonably possible that the estimate will change in the near term and that the effect of the change will be material b. Immaterial items should not be disclosed 31. Interim f/s emphasize timeliness by providing financial info based on actual performance to date and estimates prior to YE 32. Interim financial reporting should be viewed as reporting for an integral part of an annual period 33. The best, most current estimate of the annual effective tax rate should be used to determine the income tax provision for the 2nd quarter a. Income tax expense is reported in interim i/s b. The Y2 annual estimate tax rate, not the first quarter effective tax rate, is used to calculate income tax expense for interim statements 34. Expected losses record in full when loss is probable and estimate and not ratably over several quarters 35. GAAP principles that were used in the most recent report of an enterprise should be applied to interim of the CY, unless a change 36. Permanent declines in inventory market value should be reflected in interim f/s in the period incurred a. Temporary declines in MV that are expected to reverse by the end of the annual pd are not recognized in the interim statements i. Only permanent declines are recognized b. The lower cost or market should be applied to interim periods 37. Interim purposes a. Costs that benefit multiple periods should be allocated equally to those periods 38. To capture the impact of discontinued operations and extraordinary items a. Both should be included (prorated) in NI and disclosed in the interim f/s notes

39. Unaffiliated customer sales and intracompany sales disclosed separately 40. Sales to other segments would be used in determining a segments operating income a. Equity in NI of another company, general corporate expenses, interest, income tax expense, and G or L on discontinued operations are not all included in segment profit unless they are included in the determination of segment profit reported to the chief operating decision maker. 41. Segment must include at least 10% of combined revenues, including intersegment sales a. Together account for more than 75% of total sales 42. GAAP f/s for public business a. Enterprises must report segment info about a companys major customers if that customer provides 10% of the combined revenue, internal and external, of all operating segments b. Does not include 10% of liabilities for GAAP 43. Only publicly-traded enterprises required to report on business segments 44. Segment CF not reported under IFRS or US GAAP a. Segment liabilities are reported for each reportable segment under IFRS i. If such measure is regularly provided to the chief operating decision maker ii. Segment liabilities are not report under US GAAP 45. Development stage enterprises must use all the same principles as established enterprises including those of revenue recognition and deferral of expenses a. Difference: development stage enterprises must provide additional disclosures not required of established operating enterprises 46. Development stage enterprises a. All organization costs (start-up costs) expensed when incurred 47. On July 1, Year 4, an entity adopted IFRS a. The company will present one year of comparative info i. Date of transition to IFRS is the opening b/s date, which would be the date of the beginning of the prior period ii. Companys date of transition to IFRS is: January 1, Y3 48. On the opening IFRS b/s, a. Inventory must be reported at the lower of cost or NRV, with cost determined using an IFRS method (specific identification, FIFO, weighted/moving average) 49. Per IFRS 1 (first time adoption of IFRS) section 1.11 a. Adjustments go directly to RE or if appropriate b. Another category of equity at the date of transition to IFRS 50. Per IFRS 1 (first time adoption of IFRS) section 1.11 a. An entitys f/s should include at least i. 3 B/S ii. 2 statements of comprehensive income

iii. 2 separate I/S iv. 2 stmt CF v. Related notes, including comparative info vi. And an explicit statement regarding compliance with IFRS b. Form 6-K i. Filed semi-annually by foreign private issuers and contains unaudited f/s ii. Contains unaudited f/s 51. Regulation S-X a. 2 b/s b. 3 everything else 52. 75 days max to file 10-K (usually 60 days) 53. Due to the absence of seasonal fluctuations, a. The end of the preceding fiscal year is the appropriate period to include in addition to the most recent quarter end 54. An XBRL f/s is required to be submitted with a filers 10-K, 20-F, or 6-K because these filings include the filers f/s 55. MD&A not required to be presented in an exhibited prepared using XBRL 56. Form 10-K, 20-F and 11-K a. Contain f/s b. 11-K i. The annual report of an entitys employee benefit plan ii. Includes the f/s of the benefit plan c. Form 3 i. Required to be filed by directors, officers, or beneficial owners of a class of equity securities of a registered co ii. Dont contain f/s iii. Info regarding the filers ownership of the entitys securities 57. XBRL exhibits submitted to the SEC are subject to modified liability for 24 months from the time the filer first is required to submit interactive data files a. The modified liability provision will terminate completely on October 31, 2014, but will end sooner than this date for most entities 58. The results of operation of a component of an entity will be reported in the discontinued operations section of the i/s if the component is deemed to have bet all criteria for the HFS classification 59.

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