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Flashcard 1427802295564

Tags
#12-dic-2016 #el-financiero #noticias
Question
[...] asumirá como máximo responsable de Coca Cola en mayo próximo.
Answer
James Quincey

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James Quincey, que asumirá como máximo responsable de Coca Cola en mayo próximo, está bajo presión para reducir drásticamente las calorías de la línea de productos de Coca-Cola –una medida necesaria

Original toplevel document

El mayor reto del nuevo jefe de Coca-Cola eres tú, millennial
als, un sector que se inclina por productos más saludables con menos azúcar. El próximo presidente ejecutivo de Coca-Cola tiene asignada la tarea de traer a la compañía de 130 años a la era dominada por los millennials. <span>James Quincey, que asumirá como máximo responsable en mayo próximo, está bajo presión para reducir drásticamente las calorías de la línea de productos de Coca-Cola –una medida necesaria por los cambios en los gustos del consumidor y las campañas contra la obesidad. Y no puede confiar demasiado en la actual oferta de edulcorantes artificiales para ello, ya que muchos clientes se han alejado del aspartame y otros aditivos. El e






Flashcard 1451525803276

Tags
#conversation-tactics #how-to-take-a-complement
Question
Que bonitos zapatos
[...]
Answer
Observación es tu segundo nombre

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Que bonitos zapatos Observación es tu segundo nombre

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Flashcard 1461805255948

Tags
#art-of-memory #linking-methods
Question
[...] – object that we want to memorize. It may be visual or nonvisual, e.g an abstract concept.

Answer
Data object or dobe

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Data object or dobe – object that we want to memorize. It may be visual or nonvisual, e.g an abstract concept. If a dobe is nonvisual then it is useful to first create a mnemonic image for the

Original toplevel document

r30's mnemonics
on? 3.5 3.5 Some exceptions 3.6 Inside vs next-to placement 4 4. Interaction Method 5 5. Link Systems 5.1 5.1 Mnemonic Link System 5.1.1 5.1.1 IM- or TM-based chain? 5.2 5.2 Pinned Link System 6 6. When to use which linking technique? <span>1. Used terminology „Base object“ or just „base“ – real object (or just image) that we already know. In linking techniques it is the first object in your link.Besides it being an "object", it may also be a person, or something general like room, wall, ground, etc. If it is an item from your Peg System, then we call it peg. In method of loci we call it locus (base has a position with respect to other objects). „Data object“ or just „dobe“– object that we want to memorize. It may be visual or nonvisual, e.g an abstract concept. If it is nonvisual then it is useful to first create a mnemonic image for the dobe (see How to Create Mnemonic Images). In MLS (and PLS) a random middle dobe of the chain is also base (you use it to recall the next dobe). Dobe is linked to base (an association made between them). Later you can use that base to recall the dobe. I took the liberty to classify different types of mnemonic linking techniques. The following two methods cover all the ways (that I can think of) to link dobe to base : Transformation m






Flashcard 1497393663244

Tags
#conversation-tactics
Question
It's a good idea to speed up your talking pace when [...].
Answer
talking about less important points

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You are also able to consciously pair elements of the story with emotional signals and your body language. By the same token, it's also a good idea to speed up when talking about less important points.

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Article 1598456990988

Subject 6. Non-Recurring Items and Non-Operating Items
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement

The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be the primary focus of analysis. Segregating the results of recurring operations from those of non-recurring items facilitates the forecasting of future earnings and cash flows. Generally, analysts should exclude items that are non-recurring in nature when predicting a company's future earnings and cash flows. However, this does not mean that every non-recurring item in the income statement should be ignored. Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income. For the purpose of analysis, an important issue is to assess whether non-recu


Annotation 1598458301708

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #summary #understanding-income-statement

Summary

Non-recurring items should be scrutinized to assess whether they are truly "non-recurring." For example, gains or losses from the sale of fixed assets are classified as unusual or infrequent items. However, for a car rental company that retires part of its fleet of cars annually, such gains or losses are rather recurring in nature. Some non-recurring charges are, in fact, prior period expenses taken too late or future expenses taken too early. For example, asset write-downs may indicate that prior period depreciation or amortization changes were insufficient. Therefore, completely ignoring such non-recurring items in financial analysis may result in an overestimation of a company's earning trend.
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Subject 6. Non-Recurring Items and Non-Operating Items
For example, if a non-financial service company invests in equity or debt securities issued by another company, any interest, dividends, or profits from sales of these securities will be shown as non-operating income. <span>Summary Non-recurring items should be scrutinized to assess whether they are truly "non-recurring." For example, gains or losses from the sale of fixed assets are classified as unusual or infrequent items. However, for a car rental company that retires part of its fleet of cars annually, such gains or losses are rather recurring in nature. Some non-recurring charges are, in fact, prior period expenses taken too late or future expenses taken too early. For example, asset write-downs may indicate that prior period depreciation or amortization changes were insufficient. Therefore, completely ignoring such non-recurring items in financial analysis may result in an overestimation of a company's earning trend. <span><body><html>



Annotation 1598460661004

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows
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Subject 6. Non-Recurring Items and Non-Operating Items
The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. Recurring pre-tax inc



Flashcard 1598462233868

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
The goal of analyzing an income statement is to derive an effective indicator to [...]
Answer
predict future earnings and cash flows

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The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. Recurring pre-tax inc






Annotation 1598463806732

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Net income includes the impact of non-recurring items, which are transitory or random in nature.
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Subject 6. Non-Recurring Items and Non-Operating Items
The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be



Flashcard 1598465379596

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Does Net income include only recurring items?
Answer
Fuck no

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Net income includes the impact of non-recurring items, which are transitory or random in nature.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be






Annotation 1598466952460

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Why is net income is not the best indicator of future income?

Because it includes non-recurring and non operating items
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Subject 6. Non-Recurring Items and Non-Operating Items
<head>The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be the primary focus of analysis. Segregating the resul



Flashcard 1598469311756

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Why is net income not the best indicator of future income?

[...]
Answer
Because it includes non-recurring and non operating items

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Why is net income is not the best indicator of future income? Because it includes non-recurring and non operating items

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
<head>The goal of analyzing an income statement is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be the primary focus of analysis. Segregating the resul






Annotation 1598470884620

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be the primary focus of analysis.
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Subject 6. Non-Recurring Items and Non-Operating Items
is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. <span>Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be the primary focus of analysis. Segregating the results of recurring operations from those of non-recurring items facilitates the forecasting of future earnings and cash flows. Generally, analysts should



Flashcard 1598472457484

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
[...] represents the company's sustainable income and therefore should be the primary focus of analysis.
Answer
Recurring pre-tax income from continuing operations

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Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be the primary focus of analysis.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
is to derive an effective indicator to predict future earnings and cash flows. Net income includes the impact of non-recurring items, which are transitory or random in nature. Therefore, net income is not the best indicator of future income. <span>Recurring pre-tax income from continuing operations represents the company's sustainable income and therefore should be the primary focus of analysis. Segregating the results of recurring operations from those of non-recurring items facilitates the forecasting of future earnings and cash flows. Generally, analysts should






Annotation 1598474030348

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
analysts should exclude items that are non-recurring in nature when predicting a company's future earnings and cash flows
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Subject 6. Non-Recurring Items and Non-Operating Items
sustainable income and therefore should be the primary focus of analysis. Segregating the results of recurring operations from those of non-recurring items facilitates the forecasting of future earnings and cash flows. Generally, <span>analysts should exclude items that are non-recurring in nature when predicting a company's future earnings and cash flows. However, this does not mean that every non-recurring item in the income statement should be ignored. Management tends to label many items in the income statement as "non-recurring



Flashcard 1598475603212

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
analysts should exclude items that are [...] when predicting a company's future earnings and cash flows
Answer
non-recurring in nature

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analysts should exclude items that are non-recurring in nature when predicting a company's future earnings and cash flows

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
sustainable income and therefore should be the primary focus of analysis. Segregating the results of recurring operations from those of non-recurring items facilitates the forecasting of future earnings and cash flows. Generally, <span>analysts should exclude items that are non-recurring in nature when predicting a company's future earnings and cash flows. However, this does not mean that every non-recurring item in the income statement should be ignored. Management tends to label many items in the income statement as "non-recurring






Annotation 1598477176076

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income.
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Subject 6. Non-Recurring Items and Non-Operating Items
flows. Generally, analysts should exclude items that are non-recurring in nature when predicting a company's future earnings and cash flows. However, this does not mean that every non-recurring item in the income statement should be ignored. <span>Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income. For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There



Flashcard 1598478748940

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Management tends to label many items in the income statement as "non-recurring," especially [...]
Answer
those that reduce reported income.

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Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
flows. Generally, analysts should exclude items that are non-recurring in nature when predicting a company's future earnings and cash flows. However, this does not mean that every non-recurring item in the income statement should be ignored. <span>Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income. For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There






Annotation 1598480321804

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels.
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Subject 6. Non-Recurring Items and Non-Operating Items
ows. However, this does not mean that every non-recurring item in the income statement should be ignored. Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income. <span>For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There are four types of non-recurring items in an income statement. 1. Discontinued operations Discontinued operations are not a component of pers



Flashcard 1598481894668

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
For the purpose of analysis, an important issue is to assess whether non-recurring items are [...]
Answer
really "non-recurring," regardless of their accounting labels.

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For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
ows. However, this does not mean that every non-recurring item in the income statement should be ignored. Management tends to label many items in the income statement as "non-recurring," especially those that reduce reported income. <span>For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There are four types of non-recurring items in an income statement. 1. Discontinued operations Discontinued operations are not a component of pers






Annotation 1598483467532

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
There are four types of non-recurring items in an income statement.
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Subject 6. Non-Recurring Items and Non-Operating Items
-recurring," especially those that reduce reported income. For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. <span>There are four types of non-recurring items in an income statement. 1. Discontinued operations Discontinued operations are not a component of persistent or recurring net income from continuing operations. To qualify, the assets



Flashcard 1598485040396

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
There are [...] types of non-recurring items in an income statement.
Answer
four

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There are four types of non-recurring items in an income statement.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
-recurring," especially those that reduce reported income. For the purpose of analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. <span>There are four types of non-recurring items in an income statement. 1. Discontinued operations Discontinued operations are not a component of persistent or recurring net income from continuing operations. To qualify, the assets






Annotation 1598486613260

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement

1. Discontinued operations

Discontinued operations are not a component of persistent or recurring net income from continuing operations. To qualify, the assets, results of operations, and investing and financing activities of a business segment must be separable from those of the company. The separation must be possible physically and operationally, and for financial reporting purposes. Any gains or disposal will not contribute to future income and cash flows, and therefore can be reported only after disposal, that is - when realized.

  • Subsidiaries and investees also qualify as separate components.
  • Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item.
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Subject 6. Non-Recurring Items and Non-Operating Items
f analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There are four types of non-recurring items in an income statement. <span>1. Discontinued operations Discontinued operations are not a component of persistent or recurring net income from continuing operations. To qualify, the assets, results of operations, and investing and financing activities of a business segment must be separable from those of the company. The separation must be possible physically and operationally, and for financial reporting purposes. Any gains or disposal will not contribute to future income and cash flows, and therefore can be reported only after disposal, that is - when realized. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. 2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (b



Annotation 1598488448268

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item.
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ting purposes. Any gains or disposal will not contribute to future income and cash flows, and therefore can be reported only after disposal, that is - when realized. Subsidiaries and investees also qualify as separate components. <span>Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. <span><body><html>

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
f analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There are four types of non-recurring items in an income statement. <span>1. Discontinued operations Discontinued operations are not a component of persistent or recurring net income from continuing operations. To qualify, the assets, results of operations, and investing and financing activities of a business segment must be separable from those of the company. The separation must be possible physically and operationally, and for financial reporting purposes. Any gains or disposal will not contribute to future income and cash flows, and therefore can be reported only after disposal, that is - when realized. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. 2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (b



Flashcard 1598490021132

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
How is the disposal of a portion of business qualified?
Answer
this is recorded as an unusual or infrequent item.

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Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
f analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There are four types of non-recurring items in an income statement. <span>1. Discontinued operations Discontinued operations are not a component of persistent or recurring net income from continuing operations. To qualify, the assets, results of operations, and investing and financing activities of a business segment must be separable from those of the company. The separation must be possible physically and operationally, and for financial reporting purposes. Any gains or disposal will not contribute to future income and cash flows, and therefore can be reported only after disposal, that is - when realized. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. 2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (b






Flashcard 1598492380428

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Does the Disposal of a portion of a business component qualify as discontinued operations?
Answer
No way jose

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Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
f analysis, an important issue is to assess whether non-recurring items are really "non-recurring," regardless of their accounting labels. There are four types of non-recurring items in an income statement. <span>1. Discontinued operations Discontinued operations are not a component of persistent or recurring net income from continuing operations. To qualify, the assets, results of operations, and investing and financing activities of a business segment must be separable from those of the company. The separation must be possible physically and operationally, and for financial reporting purposes. Any gains or disposal will not contribute to future income and cash flows, and therefore can be reported only after disposal, that is - when realized. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. 2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (b






Annotation 1598494739724

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement

2. Extraordinary items

Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax.

Common examples are:

  • Expropriations by foreign governments.
  • Uninsured losses from earthquakes, eruptions, and tornadoes.

Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing operations.
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Subject 6. Non-Recurring Items and Non-Operating Items
. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. <span>2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing operations. 3. Unusual or infrequent items These are either unusual in nature OR infrequent in occurrence but not both. They may be disclosed separately (as a single-line



Annotation 1598496312588

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax.
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Parent (intermediate) annotation

Open it
2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losse

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. <span>2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing operations. 3. Unusual or infrequent items These are either unusual in nature OR infrequent in occurrence but not both. They may be disclosed separately (as a single-line



Flashcard 1598497885452

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Where should extraordinary items be reported
Answer
separately below the line net of income tax.

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Parent (intermediate) annotation

Open it
Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. <span>2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing operations. 3. Unusual or infrequent items These are either unusual in nature OR infrequent in occurrence but not both. They may be disclosed separately (as a single-line






Flashcard 1598500244748

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Extraordinary items are BOTH [...] in nature AND [...] in occurrence, and material in amount.
Answer
unusual

infrequent

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Parent (intermediate) annotation

Open it
Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. <span>2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing operations. 3. Unusual or infrequent items These are either unusual in nature OR infrequent in occurrence but not both. They may be disclosed separately (as a single-line






Flashcard 1598502604044

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Expropriations by foreign governments is an example of [...]
Answer
An extraordinary item

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Parent (intermediate) annotation

Open it
dinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: <span>Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. <span>2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing operations. 3. Unusual or infrequent items These are either unusual in nature OR infrequent in occurrence but not both. They may be disclosed separately (as a single-line






Flashcard 1598504963340

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #understanding-income-statement
Question
Uninsured losses from earthquakes, eruptions, and tornadoes are examples of [...]
Answer
Extraordinary items

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Parent (intermediate) annotation

Open it
items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. <span>Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing o

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
. Subsidiaries and investees also qualify as separate components. Disposal of a portion of a business component does not qualify as discontinued operations. Instead, this is recorded as an unusual or infrequent item. <span>2. Extraordinary items Extraordinary items are BOTH unusual in nature AND infrequent in occurrence, and material in amount. They must be reported separately (below the line) net of income tax. Common examples are: Expropriations by foreign governments. Uninsured losses from earthquakes, eruptions, and tornadoes. Note that gains and losses from the early retirement of debt used to be treated as extraordinary items; SFAS No. 145 now requires them to be treated as part of continuing operations. 3. Unusual or infrequent items These are either unusual in nature OR infrequent in occurrence but not both. They may be disclosed separately (as a single-line






Annotation 1598507322636

#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #summary #understanding-income-statement
For example, gains or losses from the sale of fixed assets are classified as unusual or infrequent items.
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Parent (intermediate) annotation

Open it
Summary Non-recurring items should be scrutinized to assess whether they are truly "non-recurring." For example, gains or losses from the sale of fixed assets are classified as unusual or infrequent items. However, for a car rental company that retires part of its fleet of cars annually, such gains or losses are rather recurring in nature. Some non-recurring charges are, in fact, prior pe

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
For example, if a non-financial service company invests in equity or debt securities issued by another company, any interest, dividends, or profits from sales of these securities will be shown as non-operating income. <span>Summary Non-recurring items should be scrutinized to assess whether they are truly "non-recurring." For example, gains or losses from the sale of fixed assets are classified as unusual or infrequent items. However, for a car rental company that retires part of its fleet of cars annually, such gains or losses are rather recurring in nature. Some non-recurring charges are, in fact, prior period expenses taken too late or future expenses taken too early. For example, asset write-downs may indicate that prior period depreciation or amortization changes were insufficient. Therefore, completely ignoring such non-recurring items in financial analysis may result in an overestimation of a company's earning trend. <span><body><html>



Flashcard 1598508895500

Tags
#cfa-level-1 #financial-reporting-and-analysis #non-recurring-non-operating-items #summary #understanding-income-statement
Question
For example, gains or losses from the sale of fixed assets are classified as [...]
Answer
unusual or infrequent items.

statusnot learnedmeasured difficulty37% [default]last interval [days]               
repetition number in this series0memorised on               scheduled repetition               
scheduled repetition interval               last repetition or drill

Parent (intermediate) annotation

Open it
For example, gains or losses from the sale of fixed assets are classified as unusual or infrequent items.

Original toplevel document

Subject 6. Non-Recurring Items and Non-Operating Items
For example, if a non-financial service company invests in equity or debt securities issued by another company, any interest, dividends, or profits from sales of these securities will be shown as non-operating income. <span>Summary Non-recurring items should be scrutinized to assess whether they are truly "non-recurring." For example, gains or losses from the sale of fixed assets are classified as unusual or infrequent items. However, for a car rental company that retires part of its fleet of cars annually, such gains or losses are rather recurring in nature. Some non-recurring charges are, in fact, prior period expenses taken too late or future expenses taken too early. For example, asset write-downs may indicate that prior period depreciation or amortization changes were insufficient. Therefore, completely ignoring such non-recurring items in financial analysis may result in an overestimation of a company's earning trend. <span><body><html>