




版權說明:本文檔由用戶提供并上傳,收益歸屬內(nèi)容提供方,若內(nèi)容存在侵權,請進行舉報或認領
文檔簡介
PAGEPAGE36CourseOutlineFinancialStatementsAnalysis
School: AccountingDept: Accounting
Chapter1OverviewofFinancialStatementAnalysisLEARNINGOBJECTIVESExplainbusinessanalysisanditsrelationtofinancialstatementanalysisIdentifyanddiscussdifferenttypesofbusinessanalysisDescribethecomponentanalysesthatconstitutebusinessanalysisExplainbusinessactivitiesandtheirrelationtofinancialstatementsDescribethepurposeofeachfinancialstatementandlinkagesbetweenthemIdentifyrelevantanalysisinformationbeyondfinancialstatementsAnalyzeandinterpretfinancialstatementsasapreviewtomoredetailedanalysesApplyseveralbasicfinancialstatementanalysistechniquesExplainthepurposeoffinancialstatementanalysisinanefficientmarketDefineandformulatesomefundamentalvaluationmodelsCHAPTEROVERVIEWFinancialstatementanalysisisoneimportantstepinbusinessanalysis.Businessanalysisistheprocessofevaluatingacompany’seconomicprospectsandrisks.Thisincludesanalyzingacompany’sbusinessenvironment,itsstrategies,anditsfinancialpositionandperformance.Businessanalysisisusefulinawiderangeofbusinessdecisionssuchasinvestinginequityordebtsecurities,extendingcreditthroughshortorlongtermloans,valuingabusinessinaninitialpublicoffering(IPO),andevaluatingrestructuringsincludingmergers,acquisitions,anddivestitures.Financialstatementanalysisistheapplicationofanalyticaltoolsandtechniquestogeneral-purposefinancialstatementsandrelateddatatoderiveestimatesandinferencesusefulinbusinessanalysis.Financialstatementanalysisreducesone’srelianceonhunches,guesses,andintuitionforbusinessdecisions.Thischapterdescribesbusinessanalysisandtheroleoffinancialstatementanalysis.Thechapteralsointroducesfinancialstatementsandexplainshowtheyreflectunderlyingbusinessactivities.Severaltoolsandtechniquesoffinancialstatementanalysisarealsointroduced.ApplicationofthesetoolsandtechniquesisillustratedinapreliminarybusinessanalysisofDell.CHAPTEROUTLINEIntroductiontoBusinessanalysisTypesofBusinessAnalysisCreditAnalysisEquityAnalysisOtherUsesofBusinessAnalysisManagersMergers,Acquisitions,andDivestituresFinancialManagementExternalAuditorsComponentsofBusinessAnalysisBusinessEnvironmentandStrategyAnalysisFinancialAnalysisAccountingAnalysisProspectiveAnalysisValuationFinancialStatementAnalysisandBusinessAnalysisFinancialStatements-BasisofAnalysisFinancialStatementsReflectBusinessActivitiesPlanningActivitiesFinancingActivitiesInvestingActivitiesOperatingActivitiesTheAnnualReportBalanceSheetIncomeStatementStatementofShareholders’EquityStatementofCashFlowsLinksBetweenFinancialStatementsAdditionalInformationManagementDiscussionandAnalysis(MD&A)ManagementReportAuditorReportExplanatoryNotesSupplementaryInformationSocialResponsibilityReportsProxyStatementsFinancialStatementAnalysisPreviewAnalysisToolsAreasofPreliminaryAnalysisComparativeFinancialStatementAnalysisYear-to-YearChangeAnalysisIndex-NumberTrendAnalysisCommon-SizeFinancialStatementAnalysisRatioAnalysisFactorsAffectingRatiosRatioInterpretationIllustrationofRatioAnalysisCashFlowAnalysisSpecializedAnalysisToolsValuationModelsDebtValuationEquityValuationAnalysisinanEfficientMarketMarketEfficiencyMarketEfficiencyImplicationsforAnalysisBookOrganizationReviewQuestionsListtendifferentitemsyouwouldexpecttofindinanaverageannualreporttoshareholders.
2.Belowareselectedratiosforthreecompanieswhichoperateinthreedifferentindustries:DiscountRetailStore,DrugandUtility.
IdentifywhichindustryeachofthecompaniesA,BandCoperatein.Givetworeasonsforeachofyourselections.
3.Assetsandliabilitiesattheendof2005forTripodInc.are$4,970Kand$2,220Krespectively.Netincomeanddividendsforfiscal2005were$500Kand$200K,respectively.Tripodhas100sharesoutstandingasof12/31/05.
Netincomeisexpectedtogrowat10%forthenextthreeyears(2006-2008).Thedividendpayoutratioisexpectedtoremainat2005levelfornextthreeyears.After2005abnormalearningsareexpectedtobezero.Costofdebtis8%andcostofequityis15%.
WhatwouldyoubepreparedtopaypershareforTripodstockattheendoffiscal2005,usingtheaccountingbasedequityvaluationformula?
Chapter2FinancialReportingandAnalysisLEARNINGOBJECTIVESExplainthefinancialreportingandanalysisenvironmentIdentifywhatconstitutesgenerallyacceptedaccountingprinciples(GAAP)Describetheobjectivesoffinancialaccounting,andidentifyprimaryandsecondaryqualitiesofaccountinginformationDefineprinciplesandconventionsthatdetermineaccountingrulesDescribetherelevanceofaccountinginformationtobusinessanalysisandvaluationIdentifylimitationsofaccountingdataandtheirimportanceforfinancialstatementanalysisUnderstandalternativeincomeconceptsanddistinguishthemfromcashflowsUnderstandfairvalueaccounting,itsadvantages,limitationsandanalysisimplicationsExplaintheimportanceofaccrualaccountinganditsadvantagesandlimitationsDescribetheneedforandtechniquesofaccountinganalysisExplaintherelevanceofauditingandtheauditreport(opinion)forfinancialstatementanalysis(Appendix2ACHAPTEROVERVIEWFinancialstatementsarethemostvisibleproductsofacompany’sfinancialreportingprocess.Thefinancialreportingprocessisgovernedbyaccountingrulesandstandards,managerialincentives,andenforcementandmonitoringmechanisms.Itisimportantforauseroffinancialinformationtounderstandthefinancialreportingenvironmentalongwiththeaccountinginformationpresentedinfinancialstatements.Inthischapter,theconceptsunderlyingfinancialreportingarediscussedwithspecialemphasisonaccountingrules.Nextthepurposeoffinancialreportingisdiscussed–itsobjectivesandhowtheseobjectivesdetermineboththequalityoftheaccountinginformationandtheprinciplesthatunderlietheaccountingrules.Therelevanceofaccountinginformationforbusinessanalysisandvaluationisalsodiscussedandlimitationsofaccountinginformationareidentified.Last,accrualaccountingisdiscussedincludingthestrengthsandlimitationofaccruals,andtheimplicationsofaccrualsforfinancialstatementanalysis.CHAPTEROUTLINEFinancialReportingEnvironmentStatutoryFinancialReports FinancialStatements EarningsAnnouncements OtherStatutoryReportsFactorsAffectingStatutoryFinancialReports GenerallyAcceptedAccountingPrinciples GAAPDefined SettingAccountingStandards RoleoftheSecuritiesandExchangeCommission InternationalAccountingStandards Managers MonitoringandEnforcementMechanisms SecuritiesandExchangeCommission Auditing CorporateGovernance Litigation AlternativeInformationSources Economic,Industry,andCompanyInformation VoluntaryDisclosure InformationIntermediariesNatureandPurposeofFinancialAccountingObjectivesofFinancialAccounting Stewardship InformationforDecisionsDesirableQualitiesofAccountingInformation PrimaryQualities:RelevanceandReliability SecondaryQualities:ComparabilityandConsistencyImportantPrinciplesofAccounting Double-Entry HistoricalCost AccrualAccounting FullDisclosure Materiality ConservatismRelevanceandLimitationsofAccounting RelevanceofFinancialAccountingInformation LimitationsofFinancialStatementInformation RelevanceandLimitationsofAccrualAccounting RelevanceofAccrualAccounting ConceptualRelevanceofAccrualAccounting EmpiricalRelevanceofAccrualAccounting AccrualsCanBeaDouble-EdgedSword AnalysisImplicationsofAccrualAccounting MythsandTruthsAboutAccrualsandCashFlows AccrualsandCashFlows–Myths
AccrualsandCashFlows–Truths ShouldWeForsakeAccrualsforCashFlows?ConceptofIncomeEconomicConceptofIncomeEconomicIncomePermanentIncomeOperatingIncomeAccountingConceptofIncomeRevenueRecognitionandMatchingAnalysisImplicationsFairValueAccountingUnderstandingFairValueAccountingConsiderationsinMeasuringFairValueHierarchyofInputsAnalysisImplicationsIntroductiontoAccountingAnalysisNeedforAccountingAnalysis AccountingDistortions AccountingStandards EstimationErrors ReliabilityversusRelevance EarningsManagement AnalysisObjectives ComparativeAnalysis IncomeMeasurement EarningsManagement EarningsManagementStrategies IncreasingIncome BigBath IncomeSmoothing MotivationsforEarningsManagement ContractingIncentives StockPriceEffects OtherIncentives MechanicsofEarningsManagement IncomeShifting ClassificatoryEarningsManagement AnalysisImplicationsofEarningsManagement ProcessofAccountingAnalysis EvaluatingEarningsQuality StepsinEvaluatingEarningsQuality AdjustingFinancialStatementsReviewQuestionsTherearemanywaysinwhichthemanagementofacompanycanmanagethereportedearnings.Givethreereasonswhymanagementmaywanttomanageearningsbeingsuretoexplainyouranswerinfull.
Earningsmanagementcanbedefinedasthe"purposefulinterventionbymanagementintheearningsprocess,usuallytosatisfyselfishobjectives"(Schipper,1989).
Earningsmanagementtechniquescanbeseparatedintothosethatare"cosmetic"(withoutcashflowconsequences)andthosethatare"real"(withcashflowconsequences).
Themanagementofacompanywishestoincreaseearningsthisperiod.
Listthree"cosmetic"andthree"real"techniquesthatcanbeusedtoachievethisobjectiveandexplainwhytheywillachievetheobjective.
\Onestepinassessingthequalityofearningsistolookforredflags.Anexampleofaredflagisasignificantincreaseinaccountsreceivablewithoutcommensurategrowthinsales(thatis,accountsreceivableturnoverdecreases).Listfiveotherredflagsanastuteanalystmightlookfor.Also,providethereasonforitbeingaredflag,andidentifywheretheanalystmightfindthisinformation.
Discretionaryexpendituresareoutlaysthatmanagementcanvaryacrossperiodstoconserveresourcesand/ormanageearnings.Givethreeexamplesandexplaintheirpotentialimpactonearningsqualitywhenanalyzingacompany.
Chapter3AnalyzingFinancingActivitiesLEARNINGOBJECTIVESIdentifyandassesstheprincipalcharacteristicsofliabilitiesandequity.Analyzeandinterpretleasedisclosuresandexplaintheirimplicationsandtheadjustmentstofinancialstatements.Analyzepostretirementdisclosuresandassesstheirconsequencesforfirmvaluationandrisk.Analyzecontingentliabilitydisclosuresanddescriberisks.Identifyoff-balance-sheetfinancinganditsconsequencestoriskanalysis.Analyzeandinterpretliabilitiesattheedgeofequity.Explaincapitalstockandanalyzeandinterpretitsdistinguishingfeatures.Describeretainedearningsandtheirdistributionthroughdividends.CHAPTEROVERVIEWBusinessactivitiesarefinancedthrougheitherliabilitiesorequity.Liabilitiesareobligationsrequiringpaymentofmoney,renderingoffutureservices,ordispensingofspecificassets.Theyareclaimsagainstacompany'spresentandfutureassetsandresources.Suchclaimsareusuallyseniortoholdersofequitysecurities.Liabilitiesincludecurrentobligations,longtermdebt,capitalleases,anddeferredcredits.Thischapteralsoconsiderssecuritiesstraddlingthelineseparatingliabilitiesfromequity.Equityreferstoclaimsofownerstothenetassetsofacompany.Whileclaimsofownersarejuniortocreditors,theyareresidualclaimstoallassetsonceclaimsofcreditorsaresatisfied.Equityinvestorsareexposedtothemaximumriskassociatedwithabusiness,butareentitledtoallresidualrewardsassociatedwithit.Ouranalysismustrecognizetheclaimsofbothcreditorsandequityinvestors,andtheirrelationship,whenanalyzingfinancingactivities.Thischapterdescribesbusinessfinancingandhowthisisreportedtoexternalusers.Wedescribetwomajorsourcesoffinancing—creditandequity—andtheaccountingunderlyingreportsoftheseactivities.Wealsoconsideroff-balance-sheetfinancing,includingSpecialPurposeEntities(SPEs),therelevanceofbookvalues,andliabilities"attheedge"ofequity.Techniquesofanalysisexploitingouraccountingknowledgearedescribed.CHAPTEROUTLINELiabilitiesCurrentLiabilitiesNoncurrentLiabilitiesAnalyzingLiabilitiesLeasesLeaseAccountingandReporting–LesseeAnalyzingLeasesPostretirementbenefitsPensionAccountingOtherPostretirementBenefits(OPEBs)AnalyzingPostretirementBenefitsContingenciesandCommitmentsContingenciesCommitmentsOffBalanceSheetFinancingThrough-putandTake-or-payagreementsProductfinancingarrangementsSpecialPurposeEntities(SPEs)Shareholders’EquityCapitalStockRetainedEarningsComputationofBookValuePerShareLiabilitiesatthe“Edge”ofEquityRedeemablePreferredStockMinorityInterestAppendix3A:LeaseAccounting–LessorAppendix3B:AccountingSpecificsforPostretirementBenefitsReviewQuestions1.Comparetheeffectsofoperatingleasesascomparedtocapitalizedleases,inthefirstyearofalease,onthefollowingitemslisted.Explainyouranswer.
(1)EBIT
(2)NetIncome
(3)ReturnonAssets(levered)
(4)CashflowfromOperations
(5)CurrentRatio
2.Youareconsideringpurchasingacompany-assets,liabilities,wartsandall.Youareawarethatsometimesliabilitiesdonotalwaysshowuponthebalancesheet.Givefiveexamplesofliabilitiesthatmaynotbeexplicitlyrecognizedonthebalancesheet,beingsuretoexplainwhytheyareliabilities.Chapter4AnalyzingInvestingActivitiesLEARNINGOBJECTIVESDefinecurrentassetsandtheirrelevanceforanalysis.Explaincashmanagementanditsimplicationsforanalysis.Analyzereceivables,allowancesforbaddebts,andsecuritization.Interprettheeffectsofalternativeinventorymethodsundervaryingbusinessconditions.Explaintheconceptoflong-livedassetsanditsimplicationsforanalysis.Interpretvaluationandcostallocationofplantassetsandnaturalresources.Describeandanalyzeintangibleassetsandtheirdisclosures.Analyzefinancialstatementsforunrecordedandcontingentassets.CHAPTEROVERVIEWAssetsarethedrivingforcesofprofitabilityforacompany.Assetsproducerevenuesthatcompensateworkers,repaylenders,rewardowners,andfundgrowth.Currentassetsareresourcesorclaimstoresourcesreadilyconvertibletocash.Majorcurrentassetsincludecashandcashequivalents,marketablesecurities,receivables,derivativefinancialinstruments,inventories,andprepaidexpenses.Ouranalysisofcurrentassetsprovidesusinsightsintoacompany'sliquidity.Liquidityisthelengthoftimeuntilassetsareconvertedtocash.Itisanindicatorofacompany'sabilitytomeetfinancialobligations.Thelessliquidacompany,thelowerisitsfinancialflexibilitytopursuepromisinginvestmentopportunitiesandthegreateritsriskoffailure.Noncurrentassetsareresourcesorclaimstoresourcesexpectedtobenefitmorethanthecurrentperiod.Majornoncurrentassetsincludeproperty,plant,equipment,intangibles,investments,anddeferredcharges.Ouranalysisofnoncurrentassetsprovidesusinsightsintoacompany'ssolvencyandoperationalcapacity.Solvencyreferstotheabilityofacompanytomeetsitslong-term(andcurrent)obligations.Operationalcapacityistheabilityofacompanytogeneratefutureprofits.Thischaptershowshowweusefinancialstatementstobetterassessliquidity,solvency,andoperationalcapacityusingassetvalues,andtocriticallyevaluateacompany'sfinancialperformanceandprospects.Theaccountingpracticesunderlyingthemeasurementandreportingofcurrentandnoncurrentassetsaredescribed.Wediscusstheaccountingfortheseassetsanditsimplicationsforanalysisoffinancialstatements.Specialattentionisgiventovariousanalyticaladjustmentshelpingusbetterunderstandcurrentandfutureprospects.CHAPTEROUTLINESection1:CurrentAssetsCashandCashEquivalentsAnalyzingCashandCashEquivalentsReceivablesValuationofReceivablesAnalyzingReceivablesPrepaidExpensesInventoriesInventoryAccountingandValuationAnalyzingInventoriesSection2:NoncurrentAssetsIntroductiontoLong-LivedAssetsAccountingforLong-LivedAssetsCapitalizingversusExpensing:FinancialStatementandRatioEffectsPlantAssetsandNaturalResourcesValuingPlantAssetsandNaturalResourcesDepreciationandDepletionIntangibleAssetsAccountingforIntangiblesAnalyzingIntangiblesGoodwillUnrecordedIntangiblesandContingenciesReviewQuestions1.AnalystsmaintainthattwoofthemostimportantratiosareInventoryturnoverandAccountsreceivableturnover.
a.YouareanalyzingABCCompany,acomputermanufacturer.Younoticethatinventoryturnoverthisyearissignificantlylowerthanprioryears.Providethreeexplanationsthatwouldbeconsistentwiththisobservation.Explainwhetherthesewouldbeofconcerntoyouandwhattheeffectmightbeonnextperiod'sfinancialresults.
b.YouareanalyzingABCCompany,acomputermanufacturer.Younoticethataccountsreceivableturnoverthisyearissignificantlylowerthanprioryears.Providethreeexplanationsthatwouldbeconsistentwiththisobservation.Explainwhetherthesewouldbeofconcerntoyou.
2.ouareanalyzingtwocompaniesthatoperateinthesameindustry.Theyarebothgrowingcapital-intensivemanufacturingcompanies,GuerrCorp.andFilkCorp.Adiligentreadingoftheirannualreportsrevealsthefollowing:
Youknowthattheseaccountingdifferenceswillaffectthecomparabilityofthetwocompany'sfinancialresults.
Considereachoftheaboveitems(depreciationmethod,averagedepreciablelivesandleases)separatelyanddetermineallotherthingsbeingequal,whetherthefollowingratioswillbehigher,lowerorthesameforGuerrwhencomparedtoFilk.Explainyouranswers.
i.ObservedP/Eratio
ii.PricetoFreeCashflow
iii.PricetoBookValue
Chapter5AnalyzingInvestingActivities:IntercorporateInvestmentsLEARNINGOBJECTIVESAnalyzefinancialreportingforintercorporateinvestments.Interpretconsolidatedfinancialstatements.Analyzeimplicationsofboththepurchaseandpoolingmethodsofaccountingforbusinesscombinations.Interpretgoodwillarisingfrombusinesscombinations.Describederivativesecuritiesandtheirimplicationsforanalysis.Analyzeforeigncurrencytranslationdisclosures.Analyzeinvestmentreturns.CHAPTEROVERVIEWIntercompanyinvestmentsplayanincreasinglylargerroleinbusinessactivities.Companiespursueintercompanyactivitiesforseveralreasonsincludingdiversification,expansion,andcompetitiveopportunitiesandreturns.Thischapterconsidersouranalysisandinterpretationoftheseintercompanyactivitiesasreflectedinfinancialstatements.Weconsidercurrentreportingrequirementsfromouranalysisperspective--bothforwhattheydoanddonottellus.Wedescribehowcurrentdisclosuresarerelevantforouranalysis,andhowwemightusefullyapplyanalyticaladjustmentstothesedisclosurestoimproveouranalysis.Wedirectspecialattentiontotheunrecordedassetsandliabilitiesinintercompanyinvestments.CHAPTEROUTLINEPassiveinvestmentsAccountingforInvestmentSecuritiesDisclosureofInvestmentSecuritiesAnalyzingInvestmentSecuritiesInvestmentswithSignificantInfluenceEquityMethodAccountingAnalysisImplicationsofEquityInvestmentsBusinessCombinationsAccountingMechanicsofBusinessCombinationsAnalysisImplicationsofBusinessCombinationsComparisonofPoolingversusPurchaseAccountingforBusinessCombinationsDerivativeSecuritiesDefiningaDerivativeClassificationandAccountingforDerivativesDisclosureofDerivativesAnalysisofDerivativesAppendix5A:InternationalActivitiesAppendix5B:InvestmentReturnAnalysisReviewQuestionsWildeCorporationowns30%oftheoutstandingstockofBernieInc.Bernierecordednetincomeof$10Mandpaiddividendsof$3Min2006.Foreachofthefollowingratios,statetheeffect(higher,lowerornoeffect)thattheuseoftheequitymethodwouldhaveonWilde'sfinancialratioscomparedtotheuseofthecostmethodin2006.ExplainyouransweYouareanalyzingthefinancialstatementsofABCCorp.attheendoffiscal2006.Younoticethatduringtheyear,theymadeamajoracquisition.NowhereintheannualreportdoesitstatewhetherABCusedpurchaseorpooling-of-interestsaccountingforthisacquisition.Itmadenootheracquisitionsduringtheyear,andtherewerenodisposalsofanylinesofbusiness.
Howwouldyoudeterminewhetherpurchaseaccountingorpooling-of-interestsaccountinghadbeenused.Givethreeways.Explainfully.
Chapter6AnalyzingOperatingActivitiesLEARNINGOBJECTIVESExplaintheconceptsofincomemeasurementandtheirimplicationsforanalysisofoperatingactivities.Describeandanalyzetheimpactofnon-recurringitems-includingextraordinaryitems,discontinuedsegments,accountingchanges,andrestructuringchargesandwrite-offs.Analyzerevenueandexpenserecognitionanditsrisksforfinancialanalysis.Analyzedeferredcharges,includingexpendituresforresearch,development,andexploration.Explainsupplementaryemployeebenefitsandanalyzedisclosuresforemployeestockoptions(ESOs)Describeandinterpretinterestcostsandtheaccountingforincometaxes.Analyzeandinterpretearningspersharedata(Appendix6A).Understandtheeconomicsofemployeestockoptions(appendix6B).CHAPTEROVERVIEWIncomeistheresidualofrevenuesandgainslessexpensesandlosses.Netincomeismeasuredusingtheaccrualbasisofaccounting.Accrualaccountingrecognizesrevenuesandgainswhenearned,andrecognizesexpensesandlosseswhenincurred.Theincomestatement(alsoreferredtoasstatementofoperationsorearnings)reportsnetincomeduringaperiodoftime.Thisstatementalsoreportsincomecomponents--revenues,expenses,gains,andlosses.Weanalyzeincomeanditscomponentstoevaluatecompanyperformance,assessriskexposures,andpredictamounts,timing,anduncertaintyoffuturecashflows.While"bottomline"netincomeframesouranalysis,incomecomponentsprovidepiecesofamosaicrevealingtheeconomicportraitofacompany.Thischapterexaminestheanalysisandinterpretationofincomecomponents.Weconsidercurrentreportingrequirementsandtheirimplicationsforouranalysisofincomecomponents.Wedescribehowwemightusefullyapplyanalyticaladjustmentstoincomecomponentsandrelateddisclosurestobetterouranalysis.Wedirectspecialattentiontorevenuerecognitionandtherecordingofmajorexpensesandcosts.FurtheruseandanalysisismadeofincomecomponentsinPartThreeofthebook.CHAPTEROUTLINEIncomeMeasurementConceptofIncomeMeasuringAccountingIncomeAlternativeClassificationandIncomeMeasuresNon-recurringitemsExtraordinaryItemsDiscontinuedOperationsAccountingChangesSpecialItemsRevenueandGainRecognition GuidelinesforRevenueRecognitionUncertaintyinRevenueCollectionRevenueWhenRightofReturnExistsFranchiseRevenuesProductFinancingArrangementsRevenueunderContractsAnalysisImplicationsofRevenueRecognitionDeferredChargesResearchandDevelopmentComputerSoftwareExpensesExplorationandDevelopmentCostsinExtractiveIndustriesSupplementaryEmployeeBenefitsEmployeeStockOptionsInterestCostsIncomeTaxesAppendix6AEarningsperShare:ComputationandAnalysisReviewQuestions1.HousingConstructionCompany(HCC)hasagreedtobuildahousingprojectforthecityofNewYork.OnJanuary1st,2006thecompanyandthecityagreedonthefollowingterms,theconstructionshouldtakenomorethan3years,HCCwouldbepaidatotalof$150millionfortheproject;the$150millionwouldbepaid:3paymentsof$50millioneachattheendofyear2006,2007and2008.HCCexpectscontractionscoststobe$50millioninyear2006,$50millioninyear2007,and$10millioninyear2008.
a.IfHCCusesthecompletedcontractmethod,whatrevenuesandexpenseswouldHCCrecognizeinyear2006,2007,and2008?
b.IfHCCusesthepercentageofcompletionmethod,whatrevenuesandexpenseswouldHCCrecognizeinyear2006,2007,and2008?
c.Showthebalanceontheconstruction-in-processaccountattheendof2006,2007,and2008(priortothecompletionoftheproject)usingboththecompletedcontractandthepercentageofcompletionmethods?
2.Thetablebelowshowsthedifferencesinaccountingtreatmentsforgoodwillinthreeselectedcountries.
*GoodwillistaxdeductibleintheUnitedStatesunderlimitedcircumstances,forthepurposesofthisquestion,assumeitisnot.
Givenacompanythathasrecognizedsignificantacquisitiongoodwill,identifythecountrywhoseaccountingandtaxrulesforgoodwillwouldlikelyresultinthehighestvaluationofthecompany.Justifyandexplainyouranswer.
Chapter7CashFlowBasisLEARNINGOBJECTIVESExplaintherelevanceofcashflowsinanalyzingbusinessactivities.Describereportingofcashflowsbybusinessactivities.Describethepreparationandanalysisofthestatementofcashflows.Interpretcashflowsfromoperatingactivities.Analyzecashflowsunderalternativecompanyandbusinessconditions.Describealternativemeasuresofcashflowsandtheirusefulness.CHAPTEROVERVIEWCashistheresidualofcashinflowslesscashoutflowsforallpriorperiodsofacompany.Netcashflows,orsimplycashflows,refertothecurrentperiod'scashinflowslesscashoutflows.Cashflowsaredifferentfromaccrualmeasuresofperformance.Cashflowmeasuresrecognizeinflowswhencashisreceivednotnecessarilyearned,andoutflowswhencashispaidnotnecessarilyincurred.Thestatementofcashflowsreportscashflowmeasuresforthreeprimarybusinessactivities:operating,investing,andfinancing.Operatingcashflows,orcashflowsfromoperations,isthecashbasiscounterparttoaccrualnetincome.Informationoncashflowshelpsusassessacompany'sabilitytomeetobligations,paydividends,increasecapacity,andraisefinancing.Italsohelpsusassesstheq
溫馨提示
- 1. 本站所有資源如無特殊說明,都需要本地電腦安裝OFFICE2007和PDF閱讀器。圖紙軟件為CAD,CAXA,PROE,UG,SolidWorks等.壓縮文件請下載最新的WinRAR軟件解壓。
- 2. 本站的文檔不包含任何第三方提供的附件圖紙等,如果需要附件,請聯(lián)系上傳者。文件的所有權益歸上傳用戶所有。
- 3. 本站RAR壓縮包中若帶圖紙,網(wǎng)頁內(nèi)容里面會有圖紙預覽,若沒有圖紙預覽就沒有圖紙。
- 4. 未經(jīng)權益所有人同意不得將文件中的內(nèi)容挪作商業(yè)或盈利用途。
- 5. 人人文庫網(wǎng)僅提供信息存儲空間,僅對用戶上傳內(nèi)容的表現(xiàn)方式做保護處理,對用戶上傳分享的文檔內(nèi)容本身不做任何修改或編輯,并不能對任何下載內(nèi)容負責。
- 6. 下載文件中如有侵權或不適當內(nèi)容,請與我們聯(lián)系,我們立即糾正。
- 7. 本站不保證下載資源的準確性、安全性和完整性, 同時也不承擔用戶因使用這些下載資源對自己和他人造成任何形式的傷害或損失。
最新文檔
- 社區(qū)孤獨癥患者關懷的個人方法計劃
- 分配任務與跟進進度的秘書工作計劃
- 品牌資產(chǎn)與市場風險的關聯(lián)研究計劃
- 全面提升團隊績效的年度規(guī)劃計劃
- 強化職能部門之間的配合計劃
- 如何選擇合適的品牌推廣渠道計劃
- 2025年物位儀項目建議書
- 2025年數(shù)字貨幣金融項目發(fā)展計劃
- 2025年瀝青試驗儀器項目發(fā)展計劃
- 新員工入職引導及工作流程簡明教程
- 音樂學科閱讀方案
- 2024-2030年中國醫(yī)藥設備市場發(fā)展分析及市場趨勢與投資方向研究報告
- 基于新課標學習的教材解讀及教學建議部編《道德與法治》二年級下冊
- 《勞動教育》+勞動項目八《栽種小樹》課件
- 《社區(qū)康復》課件-第二章 社區(qū)康復的內(nèi)容
- 淚道狹窄與阻塞的護理
- 銑床工安全技術操作規(guī)程培訓
- 宏觀報告:美國房地產(chǎn)市場的五大特點
- 視頻監(jiān)控系統(tǒng)驗收測試報告
- 醫(yī)院骨科專病數(shù)據(jù)庫建設需求
- 湖北省普通高中2022-2023學年高一下學期學業(yè)水平合格性考試模擬化學(二)含解析
評論
0/150
提交評論