Question 1: What is the amount of property and equipment on the balance sheet for the two most recent years? What amounts are on the cash flow statement for the most recent year that relate to depreciation, gains and sales of property and equipment, and purchases and sale of property of equipment?
Question 2: How do companies account for nonmonetary exchange and dispositions of property and equipment?
Question 3: Does the company have intangible assets? If so what are the types of intangible assets (patent, copyrights, etc.) and their amounts? What amounts on the most recent cash flow statement relate to the purchase and sale of intangible assets?
Question 4: Does the company have goodwill? Please also describe the calculation of goodwill and how we account for differences between fair value and book value of assets acquired.
Question 5: What is the range of estimated useful lives used for depreciating their assets?
Question 6: Please describe how to determine if impairment exists and how to calculate the impairment loss.
Question 7: What are the amounts and descriptions for the company’s current liabilities for the most recent year? What are the three categories of contingent liabilities and the treatment for each type? Does the company have any subsequent events disclosed in their footnotes? If so, please describe them.
Question 8: What are the amounts and descriptions for all of the company’s long-term liabilities on their balance sheet for the most recent two years? What amounts are included in the cash flow statements for proceeds from issuance of debt and repayment of debt for the most recent year?
Question 9: Does the company have bonds payable? If so, what are the amounts? Please also describe how bonds payable differ from notes payable and how to account for the issuance of bonds at par, at a discount, and at a premium. How is the discount and premium amortized?
Question 10: Does the company have capital leases? If so, what are the amounts and terms of the leases? What are the four criteria for a lease to be considered a capital lease? What are the additional criteria for the lessor? What is the difference between a sales-type lease and a direct financing lease?