IMBA财政会计9

1Thisweek’sindividualHW•Page197ofIn-classexercisesONLY2TheQualitiesofaGoodAnalystReportFormat•Professionallayouts•Smoothlydividedintosections•Sectionslogicallystructuredandconnected•Clearlyworded3TheQualitiesofaGoodAnalystReportContents1.Summaryofanalysis2.Introductionofcoveredcompany2.1Industryanalysis2.2.Companyanalysis3.Qualityofearningsanalysis4.Profitabilityanalysis5.Growthanalysis6.Earningsforecasts7.Riskanalysis8.Valuation9.Recommendation4TheQualitiesofaGoodAnalystReportComments:1.Beaware,youmakealiving(aniceapt.,adecentwedding,agoodeducationforyourchild,acomfortableretirementplan…)fromsellingyouranalystreportstoinvestors.2.YoudonothavetoSTRICTLYfollowtheaforementionedformat.Usetheformatthatyoubelievesellsyouranalysiswell.3.Becreative!!!4.Beprofessional!!!5.BeEthical!!!5ImportantdatesDecember3,NOCLASS,preparationforreportandpresentationDecember17,reportDUE,turninahardcopyinclass,andemailmeanelectroniccopy.ElectroniccopiestobeplacedonclasswebsiteDecember24,presentation.Startsat8:30,20minutesforeachgroup.Beforepresentation,IrandomlychooseONEpresenterfromthegroup.Feelfreetocometodiscussyourprojectwithme!6GradingGuideline1.Theformatandcontentsofthereport2.Theformatandcontentsofthepresentation3.Thepresenter’s精神面貌4.Thewaytohandlequestions5.EnglishislesseranissueIacceptchallengestograding,butreservetherightstomakethefinaljudgment!7ObligationAsocial,legal,ormoralrequirement,suchasaduty,contract,orpromisethatcompelsonetofolloworavoidaparticularcourseofaction.()8LiabilityRecognition•Anobligationisaliabilityif:1.Itinvolvesaprobablefuturesacrificeofresourcesandtheamountofthesacrificecanbereasonablypreciselymeasured.2.Thereislittleornodiscretiontoavoidthetransfer3.Thetransactionoreventthatgivesrisetotheobligationhasalreadyoccurred•Amutualpromise(orexecutorycontract)isnotaliabilitybecauseofitem3above.Thisis,signingacontactisnotatransaction.•Anexampleofamutualpromiseisthecustomerpromisestopayandthefirmpromisestodelivergoodsatadate.Ifthispromiseisintheformofalegalcontract,itmaygivebothpartiesrightsbuttherightsarenotyetconsideredassetsandtheobligationsarenotyetconsideredliabilities,becausethetransactionspecifiedinthepromiseshasnotyetoccurred.9ClassificationsofAccountingLiabilitiesbyDegreeofCertaintyonrepaymentdatesandrepaymentamountsReadexamples1-9onpage478-450ofStickneyandWeil10AccountingItems:RecognizedversusDisclosedAccountingitemswhoseeconomicimpactonthefirmcanbemeasuredwithreasonableprecision,arerecognizedintheI/SorB/S,suchastheliabilitiestotheleftofthedividinglineinthepreviousslide.AccountingitemswhoseeconomicimpactonthefirmcanNOTbemeasuredwithreasonableprecision,aresometimesdisclosedinannualreports,suchascontingencyliabilitiestotherightofthedividingline.11Contingencies:PotentialLiabilities•Contingentliabilitiesarepotentialliabilitiesrelatedtopastevents.•Themoreprobablethepotentialtobecomealegalobligation,thegreatertherationaleforrecognizingitasaliability.•Probabilityofapotentialliabilityisverydifficulttomeasure.•Ingeneral,anobligationshouldberecognizedasaliabilityifitisprobablethatthefirmwillhavemakefuturesacrificesofresources.•Ofcourse,thewordprobableisalsodifficulttomeasure.•Contingenciesarenormallydisclosedinfootnotes.•But,FASBandIASCrequiretherecognitionofalossandacontingentliability,when,givenpastevents,–Itisprobablethatanassethasbeenimpairedoraliabilityincurred,and–Theamountofthelosscanbereasonablyestimated.12LiabilityValuation•Ingeneral,liabilitiesarepresentedonthebalancesheetatthepresentvalueofpaymentsneededtofulfilltheobligation.•Presentvaluereferstodiscountingthenominalpaymentsbyaninterestrateappropriateforthefirm.•Discountingisamathematicalcomputationwherebyfutureflowsarereducedtoreflecttheconceptthatmoneyhastimevalue.(SeeAppendixAatthebackofthetext.)•Currentliabilitiesarenotgenerallydiscountedbecauseoftheshortperiodoftimeuntiltheyaretoberesolved.Theshortperiodoftimewouldcausetheamountofanydiscounttobesmallenoughtobeconsideredimmaterial.13LiabilityClassification•Liabilitiesareseparatedintocurrentandnoncurrentbasedonthelengthoftimethatwillelapsebeforetheobligationmustbefulfilled.•Currentliabilitiesareobligationsthatmustbefulfilledwithinthecurrentoperatingcyclewhichisalmostalwaysoneyear.•Noncurrentliabilitiesareobligationsthatneednotbefulfilledwithinthecurrentoperatingcycle.•Obligationscallingforperiodicpaymentssuchasamortgagemaybenoncurrentbuthaveacurrentportion;thatis,thepaymentsduewithintheoperatingcyclearecurrentbuttheremainingpaymentsarenoncurrent.14CurrentLiabilitiesa.Accountspayableb.Short-termnotesandinterestpayablec.Wages,salariesandotherpayrollitemsd.Incometaxespayablee.Deferredperformanceliabilities:advancesfromcustomersf.Deferredperformanceliabilities:productwarranties15AccountsPayabletoCreditors•Businessfirmsoftenbuyandselltoeachotheroncredit.•Amountsowedtootherbusinessesforservicesorgoodsarecalledtradeaccountspayable.•Typicallytheseareshort-termliabilities.•Typically,apaymentgraceperiodisallowedbeforetheseobligationsmustbefulfilled(orpaid).•Agraceperiodmaybe30daysormore