Advan

• not an autinomous operation
• acts on behalf of the home office
• does not stock inventory
• all aspects of operating the business are done at the home office
• there is no seperate accounting system

• Has more autonomy
• stocks merchandise
• fills customer orders
• has a seperate accounting system

Asset

• Intercompany sales are EXcluded
• total revenue from external sources by all seperately reportable operating segments must equal 75% of the total consolidated revenue
• company must identify additional operating segments as reportable untill the 75% is met

Estimated gross profit rates may be used to compute interim COGS

all publically traded companies

• views each period to be evaluaed as if it were an annual accounting period
• any end of period adjustments and deferrals are determined using the same accounting principles used for the annual report

• views an interim period as an installment of an annual report
• regocnition and adjustment of certian income or expense items may be affected by judgements about the expected results of the entire years operations

• a company is required to report the revenues from external customers attributed to all foreign countries in which the enterprise generates revenues
• long-lived productive assets located in the company's home country and the total assets located in all foreign countries win which the entity holds assets

• this is allocated to interim periods in a systematic way
• part of integral theory

each operating segments total revenue divided by combinded revenue of all operating segments(including intersegment transfers and sales)

Each operating segments profit or loss divided by the absolute value of thecombined profit or the combined losses of the operating segments (whichever is greater)

each operating segment's assets divided by the combinded assets of all industry segments

• general information
• amounts for each seperately reportable segment
• measures of segment profit or loss
• segment assets
• reconciliations to consolidated totals

• articles specifying form and content of financial disclosures financial statements, schedules, footnotes, reports of accounting and pro froma disclosures
• presents the rules for preparing financial statements, footnotes, and the auditor's report
• Govern preparation of Financial statement and associated disclosure made to SEC

• Staff accounting bulletins & accounting and auditing enforcement releases (AAERs and SABs)
• regulatory actions of SEC now provided on SEC website with release number beginning with number of securities act

• 8K - disclose unscheduled material events
• 8Q - no form

• SEC - legal responsibility to regulate trades of securities and determine financial disclosure public companies must make
• works with the accoutning profession

• Schedule 13D
• filed by person with beneficial ownership of more than 5% of a class of equity securities
• have 5 days after the acquisition to file

• Management discussion and analysis
• required in all major filings with the SEC

• 10-Q comparative financial
• interim statements do not need to be audited

8-K

• preliminary prospectus
• tentative information to investors about an upcoming issue

• broad legal libility for participants in registration process
• regulate the initial registration and sale of securities
• regulates the initial distribution of securities - IPO

• regulation of security trading and requirements for periodic reports by publicly held companies
• act provides for a limited level of legal exposure from involvement in the preparation and filing of periodic reports

Division of Enforcement

• Public utility holding act of 1935
• trust indenture act of 1939
• investment company act of 1940
• investment advisors act of 1940
• securities investor protection act of 1970
• SOX act of 2002
• asked for assistance eith foreign coruot practices act of 1977
• federal bankruptcy acts

• the capital account balances would remain the same if it was a direct transfer
• a debit to the original partners capital account would remove it from the books and a credit to the new partners capital account would add him as a new partner

• capital
• drawing
• loan account

• In a partnership at will, a partner's express notice to leave partnership. an at-will partnership is one in which there is, at most, only an oral understanding among the partners, and there is no definite term or specific task undertaking
• In a partnershio with a definite term or specific undertaking, dissolutions takes place after a partner's death or wrongful dissociation, at least of the remaining partners decide to wind up the partnership business OR all of the partners decide towind up the partnership business OR the term or specific undertaking has expired or been completed
• An event that maked it unlawful to carry on a substantial part of the partnership business
• a judicial terminiation that the economic purpose of the partnership is unlikely to be acheived OR a partner has engaged in conduct relating to the partnership business that makes it impracticable to carry on the partnership business OR it is not reasonbly practicable to carry on the partnership business in conformity with the partnership agreement

Partner's capital account balance divided by partners loss share

• Statement of financial condition or personal balance sheet - presents the person's assets and liabilities at a point in time
• Statement of Changes in Net Worth or personal income statement - presents the primary sources of changes in the person's net worth

• assets and liabilities are presenteing in their order of liquidity and maturity, not as current and noncurrent
• the primary valuation methods are discounted value of future cash flows, curent market prices of marketable securities or other investments, and appraisals of properties
• an nvestment in a seperate business entity should be reported as one-line, combined amount valued at the investment's market value

a partnership is insolvent when existing cash and cash generated by the sale od the assets are not sufficient to pay the partnership's liabilities. Individual partners are liable for the remaining unpaid partnership liabilities

• Cash distribution plan at the beginning of the liquidation process
• the maximum loss that the partnership can realize before that partner's capital account balance is extinguished

• Often administered by a trusteee appointed by the court
• the debtor's assets are sold and its liabilities extinguished as the business is liquidated

• debtor is provided judicial protection for a rehabilitation period during which it can eliminate unprofitable operations, obtain new credit, develop a new company structure with sustainable operations, and work out agreements with its creditors
• reorganization - debtor continues as a business

• prepared at the beginning of the liquidation process to present the expected realizable amounts from disposal of the assets, the order of the creditors' claims, and the expected amoun that unsecured creditors will receive as a result of the liquidation
• a different report, also entitled the statement of affairs is a list of questions the debtor must answer as part of the bankruptcy petition

involuntary petition

• Reorganization under Chapter 11- the debtor is provided judicial protection for a rehabilitation period during which it can eliminate unprofitable operations, obtain new credit, develop a new company structure with sustainable operations, and work out agreements with its creditors
• Liquidation under chapter 7 - debtor's assets are sold and its liabilities extinguised as the business is liquidated

• should be reported seperately from liabilities not subject to compromise
• includes unsecure debt and other payables that were incurred before the company entered reorganization

• Assets: assets to be realized, assets acquired, assets realized, and assets not realized
• Supplementary Items: supplementary charges and supplementary credits
• Liabilities: Debts liquidated, debts not liquidated, debts to be liquidated and debts incurred

Supplementary Items -> Supplementary charges

Debtor in possession - indicated that the company continues to manage its own assets rather than having them managed by a court - appointed trustee during a bankruptcy

• distribute no cash to the partners untill all liabilities and actual plus potential liquidation expenses have been paid or provided for by reserving the necessary cash
• anticipate the worst, or most restrictive, possible case before determining the amount of cash installment each partner receives
• assume that all remaining noncash assets will be written off as a loss
• assume that deficits created in the partners' capital accounts will be distributed to the remaining partners
• after the accountant has assumed the worst possible cases, the remaining credit balances in capital accounts represent safe distributions of cash that may be distributed to partners in those amounts

When debtor grants equity interest in full settlement of the debt

The extraordinary gain should be recorded as the excess of the carrying amount of the debt over the fair value of the equity interest granted