FAR1

• 1. B- Accounting Research Bulletins
• 2. O- Accounting Principles Board Opionions
• 3. S- FASB Statements of Financial Accounting Standards
• 4. S- FASB Staff Positions
• 5. I- FASB Interpretations
• 6. I- FASB Statement Implementation Issues

• 1. Relevance
• 2. Reliabilty

• 1. Comparability
• 2. Consistency

• 1. Predictive Value
• 2. Feedback Value
• 3. Timeliness

• 1. Neutrality
• 2. Representational Faithfulness
• 3. Verfiability

• 1. Entity Assumption
• 2. Going Concern Assumption
• 3. Monetary Unit Assumption (inflation are not reflecte in the financial statement)
• 4. Periodicity Assumption
• 5. Historical Cost Principle (General Rule)
• 6. Revenue Recognition Principle

• 1. Earned
• 2. Realized or Realizable

All expenses incurred to generate a specigic amount of revenue in a period are matched against that revenue.

The Method that is least likely to overstate assets and understate liabilities

• 1. defer estimate gains until realized
• 2. record probable estimated losses immediately

• 1. Determining Profitability
• 2. Value for investment purposes
• 3. credit worthiness

• 1. Income from Continuing Operations- Gross of Tax
• 2. Income from Discontinued Operations- Net of Tax
• 3. Extraordinary Items- Net of Tax

Cumulative Effect of Change in Accounting Principle- Net of Tax

-change from one acceptable method of accounting to another

"income from continuing operations"

• 1. Plan to Sell
• 2. Available
• 3. Active Buyer
• 4. Probable (within one year)
• 5. Actively Marketed
• 6. Unlikely will be withdrawn

• 1. Net Income
• 2. Other Comprehensive Income (PUFE adjustments)

1. Income of continuing Operations
2. Discountinued Operations
3. Extraordinary Items

• 1. Pension Changes in Funded Status
• 2. Unrealized Gains and Losses
• 3. Foreign Currency Items
• 4. Effectiv Portion of Cash Flow Hedges

• Revenues
• Less: Directly traceable coasts
• Less: Reasonably allocated costs
• Operating Profit

• 1. The Market Approach
• 2. The Income Approach
• 3. The Cost Approach

Uses prices and other relevant information from market transactions involving identical or comporable assets or liabilities to measure fair value

converts future amounts, incluiding cash flows or earnings, to a single discounted amount to measure fair value.

uses current replacemtn cost to measuer the fair value of assets

• highest priority
• quoted prices in active markets for identical assets or liabilities

• 1. Inputs other than quoted market prices (Ebay)
• 2. Observable

• 1. Subjective
• 2. Unobservable inputs for the asset or liability