CPA Exam Flashcards & Study Materials
Master the CPA Exam with our free, interactive spaced-repetition flashcards covering FAR, AUD, REG, BAR, ISC, and TCP.
Financial Reporting (FAR) Cheat Sheet
Financial Statements & Comprehensive Income
Full Set of Financial Statements: Statement of Financial Position (Balance Sheet), Statement of Earnings (Income Statement), Statement of Comprehensive Income, Statement of Cash Flows, Statement of Owner's Equity.
Other Comprehensive Income (OCI): Pension Adjustments, Unrealized Gains and Losses on Available-for-Sale (AFS) Debt Securities, Foreign Currency Translation Adjustments, Instrument-Specific Credit Risk, Effective Portion of Cash Flow Hedges.
Formula: Net Income + Other Comprehensive Income (OCI) = Comprehensive Income
Discontinued Operations
Discontinued operations are reported separately on the income statement, net of tax.
- The component must be disposed of or held for sale.
- The disposal must represent a strategic shift.
- Once an asset is classified as held for sale, you do not depreciate or amortize the asset anymore.
- You cannot reverse an impairment beyond the original amount that was impaired.