weighted-average cost method 介于二者之间，计算方法也需要掌握
R64-4 IFRS 不允许用LIFO 的方法；LIFO 方法是美国特有的，而且专有“LIFO conformity rule”允许美国公司在财务报表上也用LIFO 计算
R65-4 ★Under IFRS and US GAAP, producers of minerals and mineral products, and commodity broker, report inventories at NRV (fair value - costs to sell).
R66-4 如果存在active market，就用quoted market price；如果没有active market，就 用market-determined prices or values (e.g. the most recent market transaction price)度量inventory
R67-4 Changes in the value of inventory (increases or decreases) are recognised in profit or loss in the period of the change.
R68-4 Inventory adjustment：
??Under IFRS：the firm must demonstrate that the change will provide reliable and more relevant information.
??Under U.S. GAAP：the firm must explain why the change in cost flow method is preferable ??An exception to retrospective application：when a firm changes to LIFO from FIFO， no adjustments are made to the prior periods. With prospective application, the carrying value of inventory under the old method simply becomes the first layer of inventory under LIFO in the period of the change.
P24-4 Depreciation 的理解
R69-4 Depreciation 掌握计算及灵活运用：
??Most firms use the ST depreciation method for financial reporting purposes. It results that most assets generate more benefits in the early years of their economic life and
fewer benefits in the later years. 所以直线法折旧，随时间增加，ROA 是不断增加的 ??★Acelerated depreciation method is more appropriate for matching the expenses to revenues.
P25-4 Impairment 的理解
R70-4 ★Impairment under US GAAP
??Recoverability 的度量标准：carrying value> undiscounted cash flow ??Loss measurement: carrying value- fair market value/discounted cash flow ??Cann’t reverse the recognized loss R71-4 ★Impairment under IFRS
??Carrying value> max [Fair Value- selling cost, PV(value in use)]
??Can reverse the loss, the revaluation will be recognized in equity. Revaluing the asset's value upward is even permitted under IFRS. R72-4 ★Impairment effect
??PP&E cost (asset) decrease & NI decrease (due to impairment expenses) ??But NI of next year will higher caused by lower PP&E level
??impairment 对ratio 的影响：在确认减值的当期，ROA，ROE 较小。在以后的几期， ROA, ROE 变大（decreased depreciation)。
??The impact of Valuing asset upward to financial ratios: low leverage (high asset),high ROA/ROE in the period of revaluation and low ROA/ROE in subsequent periods.
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R73-4 Held for sale (same under US GAAP and IFRS) ??Stop depreciation and impairement test
??If carrying value> Fair Value –selling cost, impairement ??Can reverse the loss
P26-4 关于Capitalized 和Expensed 的理解 R74-4 Capitalized 和Expensed 的理解：
??资本化： 准备用于长时间生产的设备、厂房的建造和购买费用。（耕牛） ??费用化：准备在短时间内出售的资产的费用。（肉牛）
??Product costs should be capitalized in the inventories account; Period costs should be expensed in the period occurred
R75-4 利息的资本化和费用化：
??Capitalized expenditures are classified as CFI. Expensed expenditures are classified as CFO；The asset you capitalized today will be expensed in the future.
??Under IFRS：Income earned by temporarily investing borrowed funds reduces the interest that is eligible for capitalization.
??under U.S. GAAP：no such reduction of capitalized interest
R76-4 ★资本化和费用化对财务报表的影响（重点掌握，经常考）
??Net income: 费用化的NI 当期较低，以后较高；资本化的NI 当期高，以后稍低， 利润表随时间波动小。
??Shareholder's equity 与Net Income 的变化趋势相同。
??Cash flow: 费用化的现金流支出归入CFO，因而费用化的CFO 低；资本化的现金流 归入CFI，所以资本化CFI 低。
??Financial ratios: ROA/ROE 与NI 同向变化，费用化当期ROA/ROE 比较低，以后比较 高，资本化当期ROA/ROE 高，以后比较低，资本化ROA/ROE 比较平稳。
??Interest coverage ratio (EBIT/ interest expense): 资本化前期Interest coverage ratio 比较大，因为interest expense 小，后期比较小，因为EBIT 小；费用化前期Interestcoverage ratio 比较小，因为interest expense 比较大，后期比较大，因为EBIT 后期比较大。
R77-4 如果问哪一种财务处理较保守、激进，相对应地，应该是资本化激进，费用化保守。 R78-4 ★Tangible asset：折旧就是一种将资产资本化的方式
??Tangible asset not used in the operations of the firm should be classified as investment assets.
??Land 不必折旧
??Land improvement 需折旧 ??Lease Improvement 需折旧
??Long-lived assets held for sale: tested for impairement immediately, no longer depreciate; NRV>carrying value, imparied and can be reversed up to the total loss R79-4 ★component depreciation
??IFRS requires to depreciate the components of an asset seperately. ??GAAP allows but is seldom used
R80-4 ★Intangible asset：amotize 摊销
??Finite-lived intangible assets are amortized over their useful lives.
??一般的讲，企业本身开发的无形资产的费用应该费用化。例外：R&D，software.
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??GAAP, R&D 的费用要费用化；IFRS, research 的费用应该费用化development 的费用 应该资本化。
??Software: GAAP 要求在技术可行性确立完成之前的费用费用化（研发费用），之后 的费用资本化（ 光盘费用）。But companies expense costs related to the development of software for internal use until it is probable that the project will be completed and that the software will be used as intended. Thereafter, development costs are capitalized.
??Infinite-lived intangible asset values are not amortized but are tested for impairment at least annually.
??Goodwill 不折旧，不摊销，只做annual impairment test（还要掌握goodwill 的定义） ??Under IFRS, good will 的减值，直接将帐面价值与Implied value 进行比较。 ??Gas and oil reserve 是资源，需要Depletion R81-4 Upward revaluation
??★upward revaluation of assets 在IFRS 下是允许的，但U.S. GAAP 是不允许的. ??★reversal of impairment is permitted under IFRS for inventory (回转到原来的值), not permitted under U.S. GAAP unless for held for sale 的资产
P27-4 关于investment property
R82-4 Investment property（新增考点；注意IFRS 和GAAP 下的区别，重点掌握） IFRS：includes assets that generate rental income or capital appreciation.
either be reported at amortized cost (just like PP&E) or fair value（Under the fair value model, any change in fair value is recognized in the income statement）.
U.S. GAAP：does not have a specific definition of investment property. Under IFRS 注意：（原版书 volume3-478）investment property 的转换
P28-4 关于Debt Security 的理解
R83-4 ★报表记录：对于discount bond，premium bond 的报表记录，特别掌握如何用实际利率法计算int. exp（用mkt. rate at issuance date） ??Step 1：计算bond 的PV
??Step 2：计算bond 第一期真正的int. exp；then 计算第一期结束的carrying value ??Step 3：根据第一期结束的carrying value，计算bond 第二期真正的int. exp ??如此推导下去
R84-4 ★amortization 对CFO 间接法的影响 (premium 是减去，discount 是加上)
??For premium bonds, the total portion of coupon is treated as CFO. For analytical purpose,
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CFO have to be increase by the amount of amortization, while CFF has to be increased by the same amount. The same adjustment can be applied to discount bond CF adjustment.
R85-4 ★Disclose in footnotes as bond: The nature of liabilities；Maturity dates；Stated and effective interest rates；Call provisions and conversion privileges；Restrictions imposed by creditors；Assets pledged as security；The amount of debt maturing in each of the next five years R86-4 Bond redemption. When bond is redeemed, a gain or loss is recognized by subtracting the redemption price from the book value of the bond liability, which is reported in the income statement. In the CF statement, it is treated as CFF.
R87-4 ★注意conventional bond 与bond with warrants，convertible bond 的比较：U.S. GAAP： bond with warrants 分拆为liability 和equity 两部分确认计量；但是conventional bond 不需要拆分；IFRS：concertiable bond 和bond with warrants 都需要拆.
R88-4 For analytical purpose, if the stock price is significantly higher than the conversion price, the convertible bond should be treated as equity, in contrast, if the stock price is vastly lower than the conversion price, convertible bond should be treated as liability. R89-4 该表格需要重点掌握，考到的几率很大
P29-4 Lease for lessor and lessee 关于承租人和出租人的Lease： R90-4 承租人（常考）
??Operating lease vs. Capital lease (capital lease also can be called as finance lease) R91-4 ★Under IFRS, capital lease when transfer the risk and return of title, applying to both lessee and lessor.
??To lessee, No specific condition and focus on substance of transaction, if transfer, capital lease to lessee and lessor.
??To lessor, If PV of lease payment larger than Fair Value, sales-type. R92-4 ★Capital lease 的条件under US GAAP with specific conditions：
1. The title to the leased asset is transferred to the lessee at the end of the lease period.
2. A bargain purchase option exists: to permit the lessee to purchase the leased asset for a price that is significantly lower than the fair market value of the asset on the exercisable date. 3. The lease period is at least 75% of the asset’s economic life.
4. The present value of the lease payments is equal to or greater than 90% of the fair value of the leased asset. The discount rate used is the lower of the lessee’s incremental borrowing rate or the interest rate implicit in the lease (the discount rate that the lesser used to determine the lease payment.)
R93-4 ★两种lease 的方式对于报表呈现各项和ratio 的影响（凡是capital 的处理，都会引起A 和L 的增加, CFO 被高估，在capital lease 中Dep., Int.也会同时增加，所以NI 低；但是
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