Beruflich Dokumente
Kultur Dokumente
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Aggregation Criteria
An enterprise may combine similar operating segments if aggregation is consistent with the objectives of Statement No. 131 and the segments have similar economic characteristics.
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Quantitative Thresholds
Operating segments are reportable if they meet materiality thresholds.
Once reportable segments are identified, all other operating segments are combined with other business activities in an all other category for reporting purposes.
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Revenue test
Asset test
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Revenue Test
Reportable Intersegment Test Value Segment Under Revenue (10% $670,000) Revenue Test?
Asset Test
Operating Segments Identifiable Assets Reportable Segment Under Asset Test?
<
Reportable Segment Under Test Value Operating (10% $130,000) Profit Test?
$ 25,000 55,000
$(10,000)
50,000 $130,000 $(10,000)
<
Segment Disclosures
The basis of organization used by the chief operating decision maker to determine operating segments must be disclosed. Any aggregation of operating segments used in arriving at these reportable segments must also be disclosed.
Segment Disclosures
Profit/loss and asset information Measurement
Reconciliation requirements
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Enterprisewide Disclosures
Products and services Geographic information
Major customers
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Learning Objective 4 Understand the similarities and differences of interim reporting and annual reporting.
Interim financial reports provide more timely, but less complete, information than annual financial reports.
Product Costs
A company can use this method for interim reporting purposes when it does not use the perpetual inventory method.
Product Costs
LIFO inventory layers can be liquidated during an interim period but expected to be replaced by year end. Cost of sales can include the replacement cost of the liquidated LIFO layer if the reduction is determined to be temporary.
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Product Costs
Product Costs
Planned variances under a standard cost system that are expected to be absorbed by year end are usually deferred at the interim date.
Income year-to-date Quarterly period income Tax expense (22.25%) Net income
Learning Objective 6 Grasp both GAAP and SEC interim reporting requirements.
Intersegment revenues
A measure of segment profit or loss
Total assets for which there has been a 4 material change since the last annual report
Part I of Form 10-Q contains the following summary of contents: Part I Financial Information Item 1 Consolidated Balance Sheet Consolidated Statement of Income Consolidated Statement of Cash Flows Notes to Consolidated Financial Statements Item 2 Managements Discussion of Financial Condition and Results of Operations
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End of Chapter 14