IMBA財政會計9合集課件

1、This weeks individual HWPage 197 of In-class exercises ONLY賺希答壤賴墅剔戮烴麻卿劍全獰纜摹枷售淪睡獵忽毀垣棵諸紐毆戌窿杰馭IMBA財政會計9IMBA財政會計91This weeks individual HW賺希答壤賴The Qualities of a Good Analyst Report FormatProfessional layoutsSmoothly divided into sectionsSections logically structured and connectedClearly worded鑰無策茄派鴕淖灶詩

2、塹獵革扒徽臘濃孽打猛痞郎囚延埋挑向稽堵殆奢郡疵IMBA財政會計9IMBA財政會計92The Qualities of a Good AnalysThe Qualities of a Good Analyst Report Contents1.Summary of analysis2.Introduction of covered company2.1 Industry analysis2.2. Company analysis3.Quality of earnings analysis4.Profitability analysis5.Growth analysis 6.Earnings fo

3、recasts7.Risk analysis8.Valuation9.Recommendation臟百樓匠樸孝摯資杖研窟弦丸斡婿四嫉莊尿哭譜奸懂儈詹他汾錐酉毅檢枯IMBA財政會計9IMBA財政會計93The Qualities of a Good AnalysThe Qualities of a Good Analyst ReportComments:Be aware, you make a living (a nice apt., a decent wedding, a good education for your child, a comfortable retirement plan)

4、 from selling your analyst reports to investors. You do not have to STRICTLY follow the aforementioned format. Use the format that you believe sells your analysis well.Be creative!Be professional!Be Ethical!疑綏斤炸輩朱健矩葵擒鎬楓規(guī)海搬劇膏棗螺陋觀軋什郁島嚼鋒鐮過餒器猜IMBA財政會計9IMBA財政會計94The Qualities of a Good AnalysImportant da

5、tesDecember 3, NO CLASS, preparation for report and presentationDecember 17, report DUE, turn in a hardcopy in class, and email me an electronic copy. Electronic copies to be placed on class websiteDecember 24, presentation. Starts at 8:30, 20 minutes for each group. Before presentation, I randomly

6、choose ONE presenter from the group.Feel free to come to discuss your project with me!汛青馳墊南控喜播涯渝勁鋪歸錳瘩趴普妒嵌涎地雁金濺仗緯傲絆尸量脆冗IMBA財政會計9IMBA財政會計95Important datesDecember 3, NO Grading GuidelineThe format and contents of the reportThe format and contents of the presentationThe presenters 精神面貌The way to handle

7、 questionsEnglish is lesser an issueI accept challenges to grading, but reserve the rights to make the final judgment!支狽擺論悄氰佛雌潦胚忱即屏咸咸刻莊突歇本愛容胃褥埃余碟棲物肅玄鞋IMBA財政會計9IMBA財政會計96Grading GuidelineThe format anObligation A social, legal, or moral requirement, such as a duty, contract, or promise that compels o

8、ne to follow or avoid a particular course of action. () 鑲夸手肝奴隘租方鄒撰殘圭迷茄杰閥妥絞龐定榨摹村乏閑耽梯交淋公軸鄂IMBA財政會計9IMBA財政會計97Obligation A social, legal, orLiability RecognitionAn obligation is a liability if:1. It involves a probable future sacrifice of resources and the amount of the sacrifice can be reasonably prec

9、isely measured.2. There is little or no discretion to avoid the transfer3. The transaction or event that gives rise to the obligation has already occurredA mutual promise (or executory contract) is not a liability because of item 3 above. This is, signing a contact is not a transaction.An example of

10、 a mutual promise is the customer promises to pay and the firm promises to deliver goods at a date. If this promise is in the form of a legal contract, it may give both parties rights but the rights are not yet considered assets and the obligations are not yet considered liabilities, because the tra

11、nsaction specified in the promises has not yet occurred. 男劉侶堵騷焉寄屜寨端框瘋言樂裹認肋瘍滲首瞳峻預阮亢修鍬嫁監(jiān)擯肇脆IMBA財政會計9IMBA財政會計98Liability RecognitionAn obligaClassifications of Accounting Liabilities by Degree of Certainty on repayment dates and repayment amountsRead examples 1-9 on 450 of Stickney and Weil呂陛硼耽米碳貌秧肇餌爾預

12、境披隅莎走咆坐輝挫丁盛董訊卓拉南俐煥疾墊IMBA財政會計9IMBA財政會計99Classifications of Accounting Accounting Items: Recognized versus DisclosedAccounting items whose economic impact on the firm can be measured with reasonable precision, are recognized in the I/S or B/S, such as the liabilities to the left of the dividing line i

13、n the previous slide.Accounting items whose economic impact on the firm can NOT be measured with reasonable precision, are sometimes disclosed in annual reports, such as contingency liabilities to the right of the dividing line.贈狼梨問捧罰錐乳居惋貌僵攻尊譏垂于巢緘圣外妙戮淮八問湛厘強仿腕迪IMBA財政會計9IMBA財政會計910Accounting Items: Re

14、cognized vContingencies: Potential LiabilitiesContingent liabilities are potential liabilities related to past events.The more probable the potential to become a legal obligation, the greater the rationale for recognizing it as a liability.Probability of a potential liability is very difficult to me

15、asure.In general, an obligation should be recognized as a liability if it is probable that the firm will have make future sacrifices of resources.Of course, the word probable is also difficult to measure. Contingencies are normally disclosed in footnotes.But, FASB and IASC require the recognition of

16、 a loss and a contingent liability, when, given past events, It is probable that an asset has been impaired or a liability incurred, andThe amount of the loss can be reasonably estimated.照混矢喧慧衣硝苛逼締渭婉筏丁他郭噬博搪米坤搽化萄腮貨參州惺融稠嚎IMBA財政會計9IMBA財政會計911Contingencies: Potential LiabiLiability ValuationIn general,

17、liabilities are presented on the balance sheet at the present value of payments needed to fulfill the obligation.Present value refers to discounting the nominal payments by an interest rate appropriate for the firm.Discounting is a mathematical computation whereby future flows are reduced to reflect

18、 the concept that money has time value. (See Appendix A at the back of the text.)Current liabilities are not generally discounted because of the short period of time until they are to be resolved. The short period of time would cause the amount of any discount to be small enough to be considered imm

19、aterial.虧寺鴨舍栽瑰郭皮捷犁死穎氯漢萬覓襄爛侶私假孜焊荔易凰佬嗓毖憂懊榨IMBA財政會計9IMBA財政會計912Liability ValuationIn general,Liability ClassificationLiabilities are separated into current and noncurrent based on the length of time that will elapse before the obligation must be fulfilled.Current liabilities are obligations that must b

20、e fulfilled within the current operating cycle which is almost always one year.Noncurrent liabilities are obligations that need not be fulfilled within the current operating cycle.Obligations calling for periodic payments such as a mortgage may be noncurrent but have a current portion; that is, the

21、payments due within the operating cycle are current but the remaining payments are noncurrent.曹招糯驅(qū)知哩久沾芭堪扦負趁靳潞基束論減具凹媒倉訴輕寇株壟拎臘臆尼IMBA財政會計9IMBA財政會計913Liability ClassificationLiabilCurrent Liabilitiesa. Accounts payableb. Short-term notes and interest payablec. Wages, salaries and other payroll itemsd. I

22、ncome taxes payablee. Deferred performance liabilities: advances from customersf. Deferred performance liabilities: product warranties行寥越垣卞都捧稈訴娟肄燭檬粉貿(mào)廈享迷倒位渭歉券亂邁么繪攜耪仗醇紳IMBA財政會計9IMBA財政會計914Current Liabilitiesa. AccountsAccounts Payable to CreditorsBusiness firms often buy and sell to each other on cred

23、it.Amounts owed to other businesses for services or goods are called trade accounts payable. Typically these are short-term liabilities.Typically, a payment grace period is allowed before these obligations must be fulfilled (or paid).A grace period may be 30 days or more.Because such a grace period

24、represents interest-free borrowing, the prudent firm takes advantage by paying exactly on time but not before. Rarely, a firm is more aggressive and always pays late, but a late charge may be assessed and such a firm will develop a reputation which may affect the terms they can negotiate.針逆肋咳鴛白蹭嚎謅蹲特

25、長拙白郊段舒堿涉挫摩壞投愁稼檬鄲道濤通熟馳IMBA財政會計9IMBA財政會計915Accounts Payable to CreditorsBShort-Term Notes and Interest PayableA note payable is a form of short term borrowing.The note accrues interest expense and interest payable at a stated rate over time.The total amount of the note and the interest are mostly due

26、as one payment upon maturity of the note.右湛咳朔屏廁或奸貢諱襄舉叁瘡祝朵粥醬奸餾怨雨姿憋伏淹哪攜犢糖加掛IMBA財政會計9IMBA財政會計916Short-Term Notes and Interest Wages, Salaries and Other Payroll ItemsEmployers pay workers directly in cash and in the form of benefits - this gives rise to payroll expense For example, vacation time may be

27、earned over time. The firm pays taxes on this benefit as it is earned and a liability to the worker is recorded. When vacation is taken, the liability is reduced.Employers also pay some taxes that relate to the workers - these are tax expenses.防僳弄綠推嫌閻拳只鄭糞墳野秉玻婆懊沁先嘩吶同腔稼套攏拼揭氮文蠶冷IMBA財政會計9IMBA財政會計917Wage

28、s, Salaries and Other PayrIncome Taxes PayableU.S. and most countries tax business income.Corporations are taxed directly.Partnerships and sole proprietorships are not taxed but the income is assigned to the partners or proprietor who must then pay the tax.Income taxes are assumed to accrue; that is

29、, the income tax liability increases as the firm earns income.Tax rules also call for periodic payments to the IRS.So that business income taxes are estimated and paid throughout the year.The annual filing deadline (March 15) is a reporting deadline and not a payment deadline; payment in many cases

30、is required earlier.In addition, GAAP allows for differences between income tax expense (an accrual concept) and income tax liability (the amount owed to IRS). This is covered in a later chapter under deferred tax accounting.釁奈佐接罪碾乍子疑何圃許哀尼樹阿住疾物申棍貶嗽遷床能棍島傾瞞擂應IMBA財政會計9IMBA財政會計918Income Taxes PayableU.S

31、. and mDeferred Performance Liabilities: Advances from CustomersA mutual promise (the customer promises to pay and the firm promises to deliver) is not recorded.However, if the customer pays in advance, then there is an obligation that arises and the firm records this as an increase in an asset (cas

32、h) and an increase in a liability (advances from customers, unearned revenues).The obligation is for the firm to either fulfill its promise to deliver goods or services within the specifications of the contract or return the cash.An example is a magazine subscription which is typically paid in advan

33、ce. The subscription is an obligation to produce and deliver the magazine. When a magazine is delivered, the obligation can be reduced (debited) and revenue can be recognized (credited) because it is then earned.倚軒霧校賢罐沫低檬峭瑯夕遙顴俱咀炳斜蛙技肯諺訟嗡渠籠睬賞丸蟲告施IMBA財政會計9IMBA財政會計919Deferred Performance LiabilitiDeferr

34、ed Performance Liabilities: Product WarrantiesA warranty is a promise to repair or replace the good but is limited by time.When goods with a warranty are sold: revenue, the warranty expense, and the warranty liability are recognized. The amount of the liability must be estimated.When a claim is made

35、, the warranty liability is reduced (debited) and what is given to fulfill the claim (cash or new goods or parts and labor) are credited.Any unused portion of the warranty expires at the end of the warranty period reducing the liability and creating a gain.催妊賤婉到出啤棵函媚荒能攪嚨浦齒宴盛庸帝怪詣兼鑿夸忙夠墟迭爾拈徽IMBA財政會計9IM

36、BA財政會計920Deferred Performance LiabilitiLong-Term Liabilitiesa. Bondsb. Mortgages甘察韭摸膀點溺假齡丘?？毡犼幊辟n杭朋尸荊趕迸旦概手烹匪魯毖宜秘責IMBA財政會計9IMBA財政會計921Long-Term Liabilitiesa. Bonds甘Procedures for Recording Long-Term LiabilitiesWhereas short term liabilities may be paid at maturity, long-term liabilities are more commo

37、nly paid in installments.Also, the general rule is that long-term liabilities are recorded at the present value of the payments.The accountant distinguishes between payment of the liability (the principle) and payment of interest (an expense of financing).Commonly, the principle, the periodic paymen

38、ts and the interest rates are explicitly stated in the debt contract.If not, then discounted cash flow methods may be used to separate out the interest payment.The rate of interest that equated the present value of a given set of periodic payments with the principle is called the internal rate of re

39、turn or discount rate).If you are confused with this slide, please skip and return after Finishing this chapter.娃煉干戰(zhàn)局榮注禮宋掛衫豁辛詢忽跑淺晌漱范煞鱗洋福楚巍僥蓋聚狂請筆IMBA財政會計9IMBA財政會計922Procedures for Recording Long-Long-term Liabilities:Interest ImputationSome contracts do not explicitly state interest payments, instead

40、 the purchase price may include carrying charges.There is no economic concept of an interest-free loan. The interest may not be expressed, but it is there. The IRS agrees and will require the tax payer to calculate interest payments even if the contract does not specifically state a rate of interest

41、 (called implicit or imputed interest).GAAP agrees and requires that long term liabilities be recorded at their present value and that repayments be separated into interest expense and reduction of the liability.Where interest rates are not stated, they can be computed using present value methods an

42、d using the know payments withAn estimate of market value (which becomes the PV), orAn estimate of the interest rate for similar debt.If you are confused with this slide, please skip and return after Finishing this chapter.尿波盎騙畜險腹凳狼證滁靴殼滅沮爬坐餃頓挽奔泅奠尖入欽并圃保素袖緯IMBA財政會計9IMBA財政會計923Long-term Liabilities:Int

43、eresBondsBonds are debt instruments sold to the investing public.Some bonds carry no collateral（擔保） and are called debenture bonds.Bonds backed by collateral are called collateral trust bonds.Bonds that can be converted to common shares of the issuing company are called convertible bonds.Bonds are r

44、ecorded as a long-term liability.教品斟豁拾阻盔宰酬怪餅狐靈慨援襖哪輕龔昔拈郁辯丟船蘑貿(mào)讀墳攜疆匝IMBA財政會計9IMBA財政會計924BondsBonds are debt instrumentHow to define a bond?1. A piece of paper2. Face value (or par value): for example $1,0003. A nominal （名義上的） interest rate: for example 10% (the rate is annual rate if not stated otherwi

45、se. Semiannual rate is half of it at 5%).4. Duration: number of years before the principle is due, for example, 5 years5. Frequency of nominal interest payment in a year: annually pays once a year; semiannually pays twice a year (so a five-year bond would have ten semiannual periods)削蹬凳輪逾措桃滲塢玉穢賈該驅(qū)燃揀

46、掐庇孵倉妝聘崗抱爍腮盎脯戎逢淹重IMBA財政會計9IMBA財政會計925How to define a bond?1. A piecHow to define a bond?The definition of a bond is the pattern of its cash payments to the bondholders, nothing else(STOP: This is the first important concept in bond accounting, you must understand before you go on)The bond in the prev

47、ious slide is defined as:This bond is defined by ten $50 payments of nominal interests every half a year (semiannually); and a payment of par value $1,000 at the end of the fifth year.$50$50$50$50$50$50$50$50$50$50$1,000抗逛茅婉徒要觸舉窖宦嗣鴉硝遮袒萄耕飲烤瀑溺糕聯(lián)罷缸量粉英歷肇董鄧IMBA財政會計9IMBA財政會計926How to define a bond?The def

48、inHow much will this bond sell for?Like any investment vehicles, the price of a bond is the net present value of its future cash payments (NPV)The bond price and the par value of the bond are totally two different things, they do not have to be the same. The previous bond can be sold more than or le

49、ss than the par value $1,000.(STOP: This is the second important concept in bond accounting, you must understand before you go on)I assume you have learnt NPV calculations, and The use of present value tables.搶盈放福這寅懂意悅喇啞劫拆粕魁撩辱穿葛款救課晰夜扯遂威炔諄忱殃甥IMBA財政會計9IMBA財政會計927How much will this bond sell fHow much

50、will this bond sell for?The rate of return that we use to discount the cash flows to get NPV of the bond is called discount rate（折現(xiàn)率）.Discount rate is decided, at the time of the bond sale, by the risk associated with the bond. If it is more (less) likely for the bond seller to default in the future

51、, the discount rate will higher (lower).Microsofts bond discount rate may be 4.8%, while a small food chains bond discount rate has to be 10.7%.Discount rate has nothing to do with the bonds nominal interest rate; nominal interest rate only determines the cash payments ($50 each in this case).(STOP:

52、 This is the third important concept in bond accounting, you must understand before you go on)何腳辮忙自锨榜勛諄蔣卉邵跌傣亭漬先富韌估蛙攜復懂曼居廖塑憶邯首賤IMBA財政會計9IMBA財政會計928How much will this bond sell fHow much will this bond sell for?-sold at parLet us assume the previous bonds discount rate is 10% (this 10% has nothing to

53、do with the 10% nominal interest rate).Then the bond price is = 50/(1+5%) + 50/(1+5%)2 + 50/(1+5%)3 + 50/(1+5%)4 + 50/(1+5%)10 + 1000/(1+5%)10 = $1,000 Why we use 5% discount rate not the 10%? Because the $50 nominal interest payment is for half a year. We use 10 periods because five years make up t

54、en half-a-years.When bond price is equal to bond face value, we say it is sold at par.You should not rely on any calculator or tables to compute the bond price in the above equation. When nominal interest rate (5%) is the same as discount rate (5%), the bond is sold at par value.(STOP: This is the f

55、ourth important concept in bond accounting, you must understand before you go on)遣榮燒男病擂型勵嘻靈慫到妥栗腑稅撿疲侵嚙滅蒙并心伎解滌寒笨姚蒂圾IMBA財政會計9IMBA財政會計929How much will this bond sell fHow much will this bond sell for?-sold at premiumLet us assume the previous bonds discount rate is 8% (that is, it is less riskier than i

56、n the previous slide to lend to the company so a lower discount rate is used).Then the bond price is = 50/(1+4%) + 50/(1+4%)2 + 50/(1+4%)3 + 50/(1+4%)4 + 50/(1+4%)10 + 1000/(1+4%)10 = $50*8.11081 + $1,000*0.675562=$1,0811 Stickney and Weil page 855, 4% at n=102 Stickney and Weil page 853, 4% at n=10

57、Premium = $1,081 1,000 = $81When bond price is more than bond par value, we say it is sold at premium.擠禁閱講掠伙帚逛韋酋旋標巧贅淌誤圃達筍螟篆關(guān)股房鈔華澳道剛疚卡壟IMBA財政會計9IMBA財政會計930How much will this bond sell fHow much will this bond sell for?-sold at discountLet us assume the previous bonds discount rate is 12% (that is, it

58、 is more riskier than in the previous two slide to lend to the company so a higher discount rate is used).Then the bond price is = 50/(1+6%) + 50/(1+6%)2 + 50/(1+6%)3 + 50/(1+6%)4 + 50/(1+6%)10 + 1000/(1+6%)10 = $50*7.36009* + $1,000*0.55839*=$926* Stickney and Weil page 855, 6% at n=10* Stickney an

59、d Weil page 853, 6% at n=10Discount = $1,000 926 = $74When bond price is less than bond par value, we say it is sold at discount.穩(wěn)呵瞧賓七贊問瘧恨紛多也陵色摸捧實楊惰歪襯帕巒氰輩瑰怎舀屁組哮樂IMBA財政會計9IMBA財政會計931How much will this bond sell fHow much will this bond sell for?-summarySold at premiumSold at parSold at discountNomina

60、l Interest rate10%10%10%Discount rate8%10%12%Bond Price (cash received by the bond seller)$1,081$1,000$826Understand price difference-technicalIn the bond price equation, compare to sold at par, the numerator is the same, but denominator is smaller, then the result gets largerIn the bond price equat