| The process of reporting the results and effects of the financial transactions a business undertakes | Financial Reporting |
| the average time between the acquisition of materials or services and their final cash realization | Operating Cycle |
| What is operating cycle duration? | later between one year or business normal operating cycle |
| Accounting for treasury stock where full amount paid to repurchase the treasury stock is debited to the account | Cost method |
| Accounting for treasury stock where the par value of the repurchased shares is debited to the treasury stock account and the remaining purchase price is debited to APIC | Par value method |
| Accounting for treasury stock where the par value of the repurchased shares is debited directly to common stock account and the remaining purchase price to APIC | Constructive retirement method |
| refers to the time expected to elapse until an asset is converted into cash or until a liability needs to be paid. | Liquidity |
| the company’s ability to pay its obligation when due | Solvency |
| Provides users with information to help them predict amounts, timing, and uncertainty of (prospects for) future cash flows | Income Statement |
| represents income/loss that is NOT expected to continue in the future | Income/Loss from discontinued operation |
| form of a corporate divestiture where a subsidiary or a division of the company becoming an independent company | Spinoff |
| allocation of tax among income from continuing operations, discontinued operations, and accumulated OCI | Intra-period tax allocation |
| a movement that emphasizes corporate reporting on non-financial information relating to an organization’s corporate citizenship | Integrated reporting |
| policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. | Shared Value |
| focuses on organizations’ impacts on society | Corporate Social Responsibilit |
| focuses on organizations’ meeting the needs of the present without compromising the ability of future generations to meet their own needs | Sustainable Development |
| promotes communication about value creation as the next step in the evolution of corporate reporting. | International Integrated Reporting Council (IIRC) |
| The process that results in increase, decrease, or transformations of the capitals caused by organization’s business activities and outputs | Value creation |
| A concise communication about how an organization’s strategy, governance, performance and prospects, in the context of its external environment, lead to the creation of value over the short, medium, and long term | Integrated Report |
| A process founded on integrated thinking that results in a periodic integrated report by an organization about value creation over time and related communications regarding aspects of value creation. | Integrated Reporting |
| The active consideration by an organization of the relationship between its various operating and functional units and the capitals that the organization uses or affects | Integrated Thinking |
| the resources an organization uses in producing and providing products/services | Capitals |
| positive or negative consequence of an economic activity that is received or paid for by unrelated third parties that are external to the transaction/organization itself | Externality |
| Sustainability Accounting Standards Board (SASB) | Develops and maintains reporting standards that enable business to identify, manage, and communicate financially-material sustainability information to their investors |
| prices of goods/services that are dependent on future events | Variable consideration |
| factor assumes the risk of any credit losses | Factoring withOUT recourse |
| seller still has the risk of any credit losses (will record recourse liability/obligation account) | Factoring with recourse |
| Selling more than the purchase made during the period | LIFO Liquidation |
| Inventory count frequency | Annually |
| In lower of Cost or Market (LCM), market is equal to : | Middle value among Ceiling, Current Replacement Cost, Floor |
| In lower of Cost or Market (LCM), Ceiling, Current Replacement cost and floor equals: | Ceiling: NRV, Floor: NRV - Profit Margin, Current replacement cost: Cost to purchase the inventory |
| Option to classify security as FVTIS where it should be reported otherwise | Fair Value option (debt and equity) |
| a legal entity that is financially controlled by one or more entities that do not hold majority voting interest. | Variable Interest Entity |
| Parent in VIE | Primary Beneficiary |
| Interest income earned on invested borrowed fund should? | not be deducted or offset with interest expense incurred from the same borrowed fund under USGAAP |
| When does impairment of PPE is recognized? | When CV is greater than the undiscounted future CF |
| When does impairment of PPE is recognized under IFRS? | When CV is greater than the recoverable amount |
| Under IFRS, recoverable amount is equal to | Higher of FV less cost to sell or Value in Use |
| Value in use is equal to | PV of future CF |
| Tax allocation between periods | Inter-period Tax Allocation (temporary differences) |
| Rate used for discounting lease transactions | Implicit rate known by lessor |
| Payments made by the lessee that vary because of changes in facts or circumstance subsequent to the commencement of the lease | Variable lease payments |
| Leases with lease term of not more than 12 months | Short term lease |
| Capital stock + APIC | Contributed Capital |
| Issued capital less treasury stocks | Outstanding shares |
| Small stock dividend is | Stock dividends which is less than 25% of total outstanding shres |
| When does a PO is satisfied? | When the customer obtains control of the asset, the asset is goods or services transferred to the customer. |
| Type of contract asset where PO is fully satisfied | Unconditional contract asset |
| Type of contract asset where PO is partially satisfied or must satisfy another obligation before it can invoice customer | Conditional contract asset |
| Customer can benefit from either on its own or together with other resources already available AND separately identifiable from other promises | Distinct PO |
| Amount of consideration that the company expects to be entitled | Transaction Price |
| The customer simultaneously receives and consumes benefits provided by the company’s performance as the company is performing its obligations | Subscription revenue |
| Company’s performance create or enhance an asset such as work in process that the customer controls as the work is being done | Work in progress revenue |
| The company’s performance does NOT create an asset with alternative use to the company, and the company has an enforceable right to payment for performance completed to date | Specialized order |
| Accounting concept where equity in enterprise is what remains after the economic obligations of the enterprise are deducted from its economic resources | Proprietary Theory |
| associating cause and effect accounting concept | Matching principle |
| Share-based payment where the company gives employees the right to purchase shares in exchange of their services | Call option |
| Share-based payment where the company entitles employees to cash payments calculated by references to increase in the market prices of shares | Share appreciation rights |
| Share-based payment where the company distributes shares to employees in exchange of their services | Share ownership plans |
| CF provides information about an entity’s activities in generating cash through | Operations to repay debt, distribute dividends, or reinvest |
| exists when the parties approve a change in (1) the scope or (2) price of contract | Contract modification |
| the price at which an entity would sell a promised good / services separately | Standalone selling price |
| Most accurate inventory cost flow method | Specific identification |
| When to recognize contingency? | -When it is PROBABLE and reasonably estimated |
| Lease receivable = | PV of lease payments + PV of guaranteed residual value + PV of Variable consideration |
| Net investment = | FV of the leased asset = Lease receivable + PV of unguaranteed residual value |
| Single maturity bond | Term bond |
| Series maturity bond | Serial bond |
| Bond interest contingent on issuer's profitability | Income bond |
| Bond payable from specific revenue sources | Revenue bond |
| Bond backed by specific asset | Mortgage bond |
| Unsecured bond | Debenture Bond |
| Bond guaranteed by third party | Guaranty Bond |
| Bond secured by financial Asset | Collateral Trust Bond |
| Bond secured by a movable equipment | Equipment trust bond |
| Bond interest dependent on market | Variable / Floating bond |
| Bond with no stated interest rate | Zero-coupon / deep discount bond |
| Redeemable bond | Callable bond |
| Bond which can be converted to equity securities | Convertible bond |
| reports the effects of transactions and other events and circumstances even if the resulting cash flows occur in a different period | Accrual accounting |
| STOCK dividends payable is classified under BS as | Equity account |
| What is the treatment for change in accounting principle? | Retrospective |
| What is the treatment for chance in accounting estimate | Prospective |
| The best indicator of ability to remain solvent over the long term | Operating activities |
| Effect of premium on bonds payable on interest expense | Decrease interest expense |
| The best evidence of a standalone price is the | observable price |
| sales to customer supported by note is classified under | Other receivables, NOT trade receivable |
| What is the default method for inventory accounting method? | Periodic method |
| If measurement of equity investment is silent, use | FV method |
| FV of investment should be based on | IDENTICAL investment, NOT similar investment nor pv of cash flows |
| New cost of reclassifying investment from AFS to trading or vice versa is the | FV at the time of reclassification |
| Unrealized gain/loss on OCI when reclassifying AFS to HTM should be | Amortize |
| Direct issue cost of equity in business combination should be recorded as | APIC |
| Group and composite depreciation methods is same with | Straight-line depreciation for an aggregate of assets |
| When a title passes to the lessee depreciation of ROU is based on | Estimated useful life |
| when the equipment will be transferred to the lessee, ROU should be recorded based on | PV of MLP, NOT at FV of the asset |
| A prerequisite to integrated reporting | Integrated thinking |
| Objective of IR Framework is to | achieve financial well-being and sustainable expansion through integrated thinking and integrated reporting |
| All of its lists should be addressed in the integrated report | Content elements |
| what challenges and uncertainties is the organization likely to encounter in pursuing its strategy | Outlook |
