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Lecture

Management and Organizational Studies 3360A/B Lecture Notes - Current Asset, Equity Method, Issued Shares


Department
Management and Organizational Studies
Course Code
MOS 3360A/B
Professor
Stacey Hann

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Chapter 4
Discontinued operations is always presented net of tax and after income tax
When criteria for “assets held for sale” are fulfilled
o ASPE:
The asset retains its classification (current/non-current)
Stop recording amortization on the asset
Lower of the (net book value) or (fair value less cost to sell)
Adjustment to I/S if (FV-COST) is lower: Loss in Impairment (Rocketeer Division
example)
Unusual Loss
o Example: an event, such as a flood which would cause damage to inventory (something that is
very infrequent in nature)
o Difference between unusual loss and other loss: other may be expected, unusual is not
o Unusual loss is included under “Other expenses and losses”
Three things you need to show net of tax
o Income from continuing operations
o Discontinued operations
o OCI (IFRS only) shown after “Net Income” and the final line = “Comprehensive Income”
EPS is presented thrice once for NI, once for Discontinued, once for Net
Chapter 5
Investments are presented depending on management’s intention with that particular investment
o Short-term investments
o Long-term bonds held till maturity
o Strategic investments are long-term
How to account for investments on the Balance Sheet
o Fair Value
o Cost/Amortized Cost
o Equity method (only applicable for long-term investments)
How to account for A/R
o Current asset
o Show gross A/R less AFDA (Net Realizable Value)
How to account for PP&E
o ASPE
Cost
o IFRS
Cost or FV
How to account for Intangible Assets
o Presented after PP&E
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