Level I CFA: Understanding Income Statements Lecture 2

This is Reading 21 for the 2021 exam.
This CFA exam prep video lecture covers:
Barter transaction
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[@IFT-CFA]

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[@thehardlife5588]

Is dividend an expense or liability as it reduces equity

[@ngocong3870]

Thank you for the helpful videos. May I ask for warranties at 6:45, the warranty provision is recognized at the time the revenue occurs. So what happens if the customer does not claim the warranties after 3 years? How should we record it in the 3rd year or ignore it?

[@IFT-CFA]

The total amount of warranty expense is limited by the warranty period that a business typically allows. After the warranty period for a product has expired, a business no longer incurs a warranty liability. IFT Support Team

[@ghassenbenhassouna7073]

Whats the difference between an accounting policy and an accounting principle ? Is a policy made up of the principles and estimates ?

[@shreyasjain1259]

policy is a guideline while policy is a rule

[@thehardlife5588]

Principle is a guideline, whereas policy is a rule i think he means

[@p.o.e.7979]

There a Gdrive link or anything for the PPT material????

[@IFT-CFA]

No. IFT support team

[@matthewparker4927]

Hi, Is COGS an Operating expense? I always thought it wasn't

[@anshulisingh985]

Yes, it is

[@matthewparker4927]

@@anshulisingh985 Thanks for clarifying. Good luck with your CFA

[@syedhussain8796]

No it isn't

[@IFT-CFA]

COGS relates to operating activities. IFT Support Team

[@neelmoradiya1389]

🙏🙏👍👍