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58 Cards in this Set
- Front
- Back
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What is a deferred tax liability
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owe future taxes
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What is a deferred tax asset
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owed future tax benefits (creates future deductible amounts
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Under GAAP when should a loss be accrued
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probable and reasonably estimatable
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A loss accrual created a DTA or DTL
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DTA
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when is a valuation allowance required
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when it is more likely than not than some portion of the deferred tax asset will not be realized.
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WHAT IS A NON-TEMPORARY DIFFERENCE
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Created when an income item Something that is included in taxable income or accounting income but will never be included in the computation of the other.
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What is a net operating loss
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A negative taxable income; tax deductible expenses exceed taxable revenues
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what does a net operating loss create the opportunity for
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a carryback or carryforward
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how long can a NOL be carried back
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2 years
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How long can a NOL be carried forward
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20 years
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What are the two types of pension plans
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1) Defined Contribution Plan
2)Defined Benefits Plan |
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What does the Defined Benefits plan promise
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fixed retirement benefits
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How are PBO/Plan assets reported on the balance sheet
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net of them both (pension Asset or Pension Liability)
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What are the types of PBO
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1) PBO-Projected Benefit Obligation
2)VBO- Vested Benefit Obligation 3)ABO- Accumulated Benefit Obligation |
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What is the equation to determine the ammortization of net gain or loss using the corridor effect
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(net gain/loss- amount of corridor)/ (Number of years of service)
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What is the expected post retirement benefit
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may include ALL medical coverage, dental coverage, life insurance, group legal services, and other similar benefits. Medical Coverage is the biggest one
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do post-retirement benefits vest
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no
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What is the accumulated post-retirement benefits
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The portion of the EPBO attributed to employee service to date
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According to GAAP is comprehensive income recorded on the statement of shareholders equity
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yes
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According to IFRS iscomprehensive income recorded on the statement of shareholders equity
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No
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Are retired shares considered issued or not issued
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not issued
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Issued shares consist of
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outstanding shares and treasury shares
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What are dividend in arrears
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divided that are owed but have not been paid
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What causes the change between Tax Expense and Tax Payable
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temporary and permanent changes
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When is a loss accrued under IFRS
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When it is more likely than not
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What is the journal entry to record the expense and recording of a valuation allowance
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debit- Deferred Tax Expense
Credit- Valuation Allowance- DTA Debit- Valuation Allowance-DTA Credit- DTA |
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How does GAAP report discountinued operations and extrordinary items on the income statement
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both seperately
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How does IFRS report discountinued operations and extrordinary items on the income statement
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Only Discontiued operations is reported seperately
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Is the approach for accounting for intraperiod tax calculation the same under GAAP and IFRS
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Yes
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Where is the amortization of a net gain/or loss reported
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Accumulated Other Comprehensive Income
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What is the journal entry to record a contribution to plan assets
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Debit-Plan Assets
Credit-Cash |
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What is the journal entry to record the payment of retirement benefits
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Debit-PBO
Credit-Plan Assets |
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What is the journal entry to record a gain on plan assets
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Debit-Plan Assets
Credit-Gain-OCI |
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What is the journal entry to record an increase in PBO
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Debit-Loss PBO
Credit-PBO |
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From what part of the income statement does an amortization of a gain shift to
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from OCI to NI
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True or false: GAAP requires that gains are recorded in OCI
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TRUe
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True or false: IFRS requires that gains are recorded in OCI
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False
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Prior Service cost is included in which part of the statement of Income
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OCI
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Under GAAP, What happens to PSC (where does it shift on the income statement) when it is amortized
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shifts from OCI to AOCI
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How is Prior Service cost dealt with according to IFRS
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Expense immediately in terms of benefits that have vested and then the rest increases PBO
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Under IFRS how are the the various aspects of pension expense recorded
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can be all together
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What post-retirement benefit obligation is reported similar to that of PBO
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Accumulated Post-Retirement Obligation
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Can Comprehensive Income be recorded in shareholder's Equity under IFRS
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no
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How are common stock and preferred stock recorded under IFRS
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Ordinary shares and preference shares
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How is Paid in Capital and Accumulated Other COmprehensive Incoem reported under IFRS
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Share Capital and Reserve
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What does the Model Business Corporation Act do?
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establish how the Corporate charter is issued and how a company is formed
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List the steps of how the Model Business Corporation Act works
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1) Submit Articles of Incorporation
2) State issues corporate charter 3) Company issues shares 4) Shareholders Appoints BoD 5) They appoint officers |
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What do issued shares consist of
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outstanding shares and treasury shares
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What do unissued shares consist of
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unissued shares and retired shares
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What do authorized shares consist of?
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Issued and Unissued shares
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What is legal capital
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the par value of stock
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What is a dividend in Arrears
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a dividend owed but not paid yet
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If convertible shares need to be redeemed what form of cpaital are they considered
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debt
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What is the order of dividend dates
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Dividend declaration, ex-dividend date date of record, date of payment
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what is the ex-dividend date
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shares must be bought by this date to receive dividends
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what is the date of record
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people who receive the dividends regardless of whether they sell shares before dividend payment
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What is a small stock dividend
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<25%
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What is a large stock dividend
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>25%
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