Study Session 5: Financial Reporting and Analysis: Intercorporate Investments, Post-Employment and Share Based Compensation, and Multinational Operations
I still have problems understanding the concept. Could someone please tell me if I am right or wrong? Help is much appreciated
For pension costs there are 2 possible ways to calculate them. One where we add/subtract each item and another where we look at the ending value minus the beginning value.
current service costs
interest costs (+)
past service costs (+)
actuarial losses (+)
actuarial gains (-)
return on plan assets (-)
. The contribution of FCB’s equity portfolio to its net income for 2012 is closest to:
A. $25,000. B. $33,000. C. $41,000 The answer is B
Security Mercury. Venus Jupiter Saturn
Classification HFT Desig @ FV. AFS Equity Meth
Divs received during year. 2000 5000 3000 4000
Share of NI for the year. 8000 4000 9000 20000
Anyone done this question on the topic test? I don’t understand how they calculated the goodwill impairment loss.
The question uses US GAAP
Part A: Values at Acquisition, 1 January 2014 ($ thousands)
Plant and equipment (P&E)*
can someone explain the question 23 from the morning mock exam pls?
Under US GAAP we have to calculate the amount of periodic pension cost reported in the P&L.
The answer is: Current service cost 1,151 + Interest cost on the obligation 5,441 - Expected return on plan assets 4,597 + Amortization of past service cost 272 = 2,267
PLEASE HELP OUT - ARE EMPLOYER CONTRIBUTION AND EMPLOYEE CONTRIBUTION INCLUDED IN PENSION ACCOUNTING EQUATION?
beginning PBO + current service cost + interest expense + past service cost +/- actuarial loss/gain - benefit paid + employee contribution = ending PBO
beginning FV of plan assets + actual return - benefit paid employer contribution + employer contribution + employee contribution = ending FV of plan assets
In the below example, why are we using the Dec exchange rate for COGS when it is under the temporal method?
[question removed by moderator]
There is a statement that I do not get in the question sets of the institute, US GAAP allows the option of recording an equity method investment at fair value with the gains and losses going to profit and loss.
Unrealized gain from the change in fair value:
($37.60 – $35.00) × 4 million shares = $10.4
$1.20/share × 4 million shares = 4.8
Total investment income = $15.2
In the equity method, when calculating the NI generated from the associate, do we need to deduct amortization from identifiable intangible or just in case they are not recorded?
And what does recorded and unrecorded intangibles mean, and are not they deducted from I/S like depreciation, and if they are not recorded in I/S why is that?
- Masson is selling the distribution center for $200 million. The net book value of the center would have been $170 million at year-end therefore the company will record a $30 million gain. I reflected the gain in my projections as an increase in net income in 2014. There will be no taxes on this gain due to the availability of loss carry forwards.
When we are converting ROA using the current rate and temporal methods, which currency do we use to convert “average assets” when we are using the temporal method?
For the current rate method it would be the current rate but for temporal there is a discrepancy between monetary and nonmonetary conversion rates.
Just wondering which one to use if they are asking about ROA generally as a potential qualitative question rather then provided line items of each type of asset.
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