F3 1. HTM a. Reported as current or noncurrent assts based on their time to maturity 2. IFRS a.

Marketable security investments can be classified as: i. Financials assets a FV through profit or loss ii. AFS or iii. HTM b. A financial asset at FV through profit or loss is a financial asset that: i. It is classified as Held for trading (equivalent to trading security under US GAAP) ii. The asset is designated as an investment at FV through profit or loss using the FV option 3. Valuation a. Trading and AFS (FV) i. Unrealized g/l trading securities -> earnings > i/s b. IFRS i. AFS in OCI 1. EXCEPT foreign exchange g/l on AFS debt securities 4. Consolidated Stmt of CF a. The net cash spent or received in the acquisition must be reported in the investing section of the stmt of CF 5. Business combination acquisition a. Direct costs of combination other than registration and issuance costs of equity securities (reduce PIC) should be i. Deducted in determining the NI of the combined corporation for the period in which the costs were incurred ii. Direct costs are expensed in the period incurred b. Acquisition accounting, net assets acquired are based on FMV i. FMV of finished goods and merchandise inventory are based upon selling price disposal costs and a reasonable profit allowance ii. FMV of raw materials replacement costs iii. FMV of WIP -> 1. Estimated sp of FG costs to complete and dispose and a reasonable profit allowance 6. F/S consolidation method Acquisition method a. Consolidated RE = parent co RE 7. Equity method a. Consolidated NI = parents NI 8. Investor going from Control to Non-Control

a. Recognize a g/l from the sale of the stock b. Remeasure the remaining non-consolidating interest to FV 9. Acquisition price paid (CARINBIG) a. Calculated with stock price on date acquisition is finalized 10. When a co owns < 50% of the CS of an investee corp a. Investment account can be reported using cost or equity method i. Depending on whether significant influence is exercised b. Receivables and payables to the investee are reported separately on the b/s 11. US GAAP - Research and development costs a. Expensed, except for i. Costs to be reimbursed by another co ii. Costs for a long lived tangible asset with alternative uses 12. G/L on hedges of firm commitments for a future purchase (or sale) a. Recognize in current income b. Adjust firm commitment to FV with i. Resulting G or L recognized in current income ii. The difference between the G or L on the hedge contract and the G or L on the firm commitment is the net effect on current income 13. Goodwill a. Only capitalized when incurred in the purchase of another entity b. Costs incurred for maintaining or developing goodwill => EXPENSED 14. AFS securities a. Carried at FV b. Permanent impairment in value results in a writedown and a charge to income as if the loss was realized 15. Recognition of a gain resulting from the sale in a sale-leaseback should be deferred when the seller-lessee retains the right to all of the remaining use of the property (as in a capital lease) a. Seller-lessee transfers all the risks of ownership (as in a true sale) i. Any gain, resulting from sale should be recognized immediately 16. Lease payment is used to compute the PV of the liability, not including executor costs, such as taxes a. Executory costs Expensed when paid b. Taxes Expensed when paid 17.