Exam 14: Reporting for Segments and for Interim Financial Periods

Current authoritative pronouncements require the disclosure of segment information when certain criteria are met.Which of the following reflects the type of firm and type of financial statement for which this disclosure is required?

Bjork, a calendar year company, has the following income before income tax provision and estimated effective annual income tax rates for the first three quarters of 2014: Bjork's income tax provision in its interim income statement for the third quarter should be

Blink Company, which uses the FIFO inventory method, had 508,000 units in inventory at the beginning of the year at a FIFO cost per unit of $20.No purchases were made during the year.Quarterly sales information and end-of-quarter replacement cost figures follow: The market decline in the first quarter was expected to be nontemporary.Declines in other quarters were expected to be permanent. Required: Determine cost of goods sold for the four quarters and verify the amounts by computing cost of goods sold using the lower-of-cost-or-market method applied on an annual basis.

The following information is available for Pink Company for 2014: a.In early April Pink made major repairs to its equipment at a cost of $90,000.These repairs will benefit the remainder of 2014 operations. b.At the end of May, Pink sold machinery with a book value of $35,000 for $45,000. c.An inventory loss of $60,000 from market decline occurred in July.In the fourth quarter the inventory had a market value recovery that exceeded the market decline by $30,000. Required: Compute the amount of expense/loss that would appear in Pink Company's June 30, September 30, and December 31, 2014, quarterly financial statements.

List the three major types of enterprise wide information disclosures required by SFAS No.131[ASC 280], and explain how the firm's designation of reportable segments affects these disclosures.

Describe the guidelines to be used in determining (a) what constitutes an operating segment, and (b) whether a specific operating segment is a significant segment.

The computation of a company's third quarter provision for income taxes should be based upon earnings

Which of the following is not part of the information about foreign operations that is required to be disclosed?

In January 2014, Cain Company paid $200,000 in property taxes on its plant for the calendar year 2014.Also in January 2014, Cain estimated that its year-end bonuses to executives for 2014 would be $800,000.What is the amount of expenses related to these two items that should be reflected in Cain's quarterly income statement for the three months ended June 30, 2014 (second quarter)?

Which of the following is not required to be disclosed by SFAS No.131?

Long Corporation's revenues for the year ended December 31, 2014, were as follows Long has a reportable segment if that segment's revenues exceed

An entity is permitted to aggregate operating segments if the segments are similar regarding the

Advertising costs may be accrued or deferred to provide an appropriate expense in each period for

For what types of companies would segmented financial reports have the most significance? Why?

Why do financial statement users (financial analysts, for example) need information about seg need hyphen ments of a firm?

Which of the following disclosures is not required to be presented for a firm's reportable segments?

Describe how changes in estimates should be treated in interim financial statements.

Pale Company has four manufacturing divisions, each of which has been determined to be a reportable segment.Common operating costs are appropriately allocated on the basis of each division's sales in relation to Pale's aggregate sales.Pale's Delta division accounted for 40% of Pale's total sales in 2014.For the year ended December 31, 2014, Delta had sales of $5,000,000 and traceable costs of $3,600,000.In 2014, Pale incurred operating costs of $350,000 that were not directly traceable to any of the divisions.In addition, Pale incurred interest expense of $360,000 in 2014.In reporting supplementary segment information, how much should be shown as Delta's operating profit for 2014?

An entity is permitted to aggregate operating segments that have similar economic characteristics under certain circumstances.Which of the following circumstances would allow aggregation of a Entity A into Segment B?

Which of the following does not have to be disclosed in interim reports?