valuation allowance

CFA Level I
#1

Disclosures of valuation allowance for changes in the carrying amount of a noncurrent investment securities is included in the company’s: A. balance sheet B. income statement C. statement of cash flow D. statement of stockholders’ equity

#2

a

#3

a or b i will say A

#4

No

#5

b lol

#6

B

#7

I say D

#8

B because it is an extra “cost” incurred in the year

#9

i’d say D

#10

D is correct. But I don’t think the explain make sense. Map, please. Thanks.

#11

affects incoming from continuing operations :slight_smile: nice strange! Also in regards to our previous thread about interest coverage and cap leases thanks for correcting me! I was thinking about capitalized costs @ first. Gotta get this stuff down cold. However I still believe that operating income(EBIT) is higher with cap leases because the interest charge comes after operating income :slight_smile:

#12

These are non-current investments, non-trading investments. Changes to any of these during the year pass over the statements as direct adjustments to equity, PUFE. You’ll find them in the statement of stockholders’ equity.

#13

getterdone Wrote: ------------------------------------------------------- > affects incoming from continuing operations :slight_smile: > nice strange! > > Also in regards to our previous thread about > interest coverage and cap leases thanks for > correcting me! I was thinking about capitalized > costs @ first. Gotta get this stuff down cold. > > However I still believe that operating > income(EBIT) is higher with cap leases because the > interest charge comes after operating income :slight_smile: Check the thread…map also posted additional information…have a look. By the way if you received all the 5 mock exam sample can you sent it to me? volatility00@yahoo.it thank!

#14

map1 Wrote: ------------------------------------------------------- > These are non-current investments, non-trading > investments. Changes to any of these during the > year pass over the statements as direct > adjustments to equity, PUFE. You’ll find them in > the statement of stockholders’ equity. PUFE? What does this stand for?

#15

But I remember in the Tax chapter, it says VA is only for offsetting DTA and is included in income from continuing operation. Thus should be in income statment. Got lost here

#16

PUFE for other comprehensive income (what goes dirrectly to BS passing over IS) Pensions: additional minimum pension liability Unrealized: gains or losses on available-for-sale securities Foreign: currency exchange translations, gain or losses on foreign currency hedges Effective: portion of cash flow hedges, unrealized gain or losses Valuation allowance is not for DTA, is for the asset itself. When and where you use, that’s a different thing:)

#17

valuation allowance is a contra account when DTA has a >50% chance of not being realized though

#18

getterdone Wrote: ------------------------------------------------------- > valuation allowance is a contra account when DTA > has a >50% chance of not being realized though It is a contra account also for doublful receivables.

#19

they key to the question is “NON CURRENT securities” HENCE THIS IS GOING TO BE PART of compreehnsive income/loss.

#20

Thanks pepp will remember that for the exam