Role of Private Equity In Successful Debt-to-Equity Conversion [Ted Cominos]. Ted Cominos is an attorney specializing in corporate law. He earned his law degree from the Monterey College of Law.
This document discusses accounting for investments according to AS 13. It defines key terms like current investments, long term investments, and fair value. It explains that investments are classified as either long term or current. The cost of investments includes acquisition costs and the cost is determined based on the fair value of assets given up in an exchange. Disclosures in financial statements about investments include the accounting policies, income/gains/losses from investments, restrictions, aggregate amounts and market values.
This document discusses accounting for investments according to Accounting Standard 13. It defines investments as assets held to earn income through dividends, interest or rentals. Investments can be classified as long term or current based on holding period, and as variable or fixed earning securities based on nature. Dividend earning securities are recorded at full purchase price including dividends. Dividends received before and after acquisition date are treated differently for accounting purposes. Bonus shares are recorded by increasing share quantity without affecting cost. Rights shares are similarly recorded, and sale of rights is credited to profit and loss.
The document discusses accounting standards for investments in India. It covers the meaning and significance of investments, the scope and coverage of the accounting standard, forms of investments, principles and norms for valuation and classification of investments, disclosure requirements, and examples of types of investments held by Indian companies. The key principles are that current investments are carried at fair value and long-term investments at cost, and gains or losses on disposal of investments are recorded in the profit and loss statement.
This document outlines accounting standards for classifying and reporting investments. It defines current and long-term investments and discusses how they should be measured and reported. Current investments are intended to be held less than one year and carried at the lower of cost or fair value. Long-term investments are carried at cost, though declines in value other than temporary require reducing the carrying amount. The standard provides guidance on determining investment costs and proceeds from disposals. It also specifies disclosure requirements regarding accounting policies, income/losses from investments, and aggregate amounts of quoted and unquoted investments.
The document discusses investment accounts and related journal entries. It explains that an investment account is maintained for each security/script to record transactions separately. It also discusses entries for purchase and sale of investments at interest dates and before interest dates. For purchases/sales before an interest date, it explains the treatment for cum-interest and ex-interest quotations. Cum-interest means the quoted price includes accrued interest, while ex-interest means it does not. The accounting entries record the purchase/sale price and treat accrued interest separately.
This document outlines accounting standards for investments. It defines investments as assets held for earning income or capital appreciation. Investments are classified as either long-term or current. Cost of investments includes the basic cost and acquisition charges. Carrying amounts of current investments are at lower of cost or fair value, while long-term investments are at cost, with provisions for permanent declines. Disclosure requirements include classification of investments, accounting policies, income/losses from investments, and restrictions.
The document discusses forecasting a company's balance sheet by providing formulas to project the values of each line item over time. It addresses fixed assets, inventory, accounts receivable, cash, equity, long-term debt, short-term debt, accounts payable, and balancing the overall balance sheet so assets equal liabilities plus equity. Formulas are provided to calculate future values based on factors like depreciation, investments, retained earnings, dividends, debt maturities and new debt issuances.
The document discusses the key components of a profit and loss (P&L) statement, including sales, cost of goods sold, gross margin, operating expenses, EBITDA, depreciation, interest, taxes, and net profit. It explains that the top part of the P&L relates to the day-to-day operations of the business, while the bottom part relates to consequences of investment and financial decisions. Gross margin is calculated as sales minus cost of goods sold and indicates the money earned after accounting for product costs. Operating expenses are other costs incurred in ordinary business activities. EBITDA represents earnings before interest, taxes, depreciation, and amortization and is a proxy for the cash generated by operations
This document discusses accounting for investments according to AS 13. It defines key terms like current investments, long term investments, and fair value. It explains that investments are classified as either long term or current. The cost of investments includes acquisition costs and the cost is determined based on the fair value of assets given up in an exchange. Disclosures in financial statements about investments include the accounting policies, income/gains/losses from investments, restrictions, aggregate amounts and market values.
This document discusses accounting for investments according to Accounting Standard 13. It defines investments as assets held to earn income through dividends, interest or rentals. Investments can be classified as long term or current based on holding period, and as variable or fixed earning securities based on nature. Dividend earning securities are recorded at full purchase price including dividends. Dividends received before and after acquisition date are treated differently for accounting purposes. Bonus shares are recorded by increasing share quantity without affecting cost. Rights shares are similarly recorded, and sale of rights is credited to profit and loss.
The document discusses accounting standards for investments in India. It covers the meaning and significance of investments, the scope and coverage of the accounting standard, forms of investments, principles and norms for valuation and classification of investments, disclosure requirements, and examples of types of investments held by Indian companies. The key principles are that current investments are carried at fair value and long-term investments at cost, and gains or losses on disposal of investments are recorded in the profit and loss statement.
This document outlines accounting standards for classifying and reporting investments. It defines current and long-term investments and discusses how they should be measured and reported. Current investments are intended to be held less than one year and carried at the lower of cost or fair value. Long-term investments are carried at cost, though declines in value other than temporary require reducing the carrying amount. The standard provides guidance on determining investment costs and proceeds from disposals. It also specifies disclosure requirements regarding accounting policies, income/losses from investments, and aggregate amounts of quoted and unquoted investments.
The document discusses investment accounts and related journal entries. It explains that an investment account is maintained for each security/script to record transactions separately. It also discusses entries for purchase and sale of investments at interest dates and before interest dates. For purchases/sales before an interest date, it explains the treatment for cum-interest and ex-interest quotations. Cum-interest means the quoted price includes accrued interest, while ex-interest means it does not. The accounting entries record the purchase/sale price and treat accrued interest separately.
This document outlines accounting standards for investments. It defines investments as assets held for earning income or capital appreciation. Investments are classified as either long-term or current. Cost of investments includes the basic cost and acquisition charges. Carrying amounts of current investments are at lower of cost or fair value, while long-term investments are at cost, with provisions for permanent declines. Disclosure requirements include classification of investments, accounting policies, income/losses from investments, and restrictions.
The document discusses forecasting a company's balance sheet by providing formulas to project the values of each line item over time. It addresses fixed assets, inventory, accounts receivable, cash, equity, long-term debt, short-term debt, accounts payable, and balancing the overall balance sheet so assets equal liabilities plus equity. Formulas are provided to calculate future values based on factors like depreciation, investments, retained earnings, dividends, debt maturities and new debt issuances.
The document discusses the key components of a profit and loss (P&L) statement, including sales, cost of goods sold, gross margin, operating expenses, EBITDA, depreciation, interest, taxes, and net profit. It explains that the top part of the P&L relates to the day-to-day operations of the business, while the bottom part relates to consequences of investment and financial decisions. Gross margin is calculated as sales minus cost of goods sold and indicates the money earned after accounting for product costs. Operating expenses are other costs incurred in ordinary business activities. EBITDA represents earnings before interest, taxes, depreciation, and amortization and is a proxy for the cash generated by operations
Net assets are the total assets of a company minus any spontaneous funds. Spontaneous funds are short-term liabilities like payables that do not have an explicit cost. Financing net assets has a cost, known as the cost of capital. The cost of equity financing for shareholders is considered the cost of capital since shareholders expect a return as the residual claimants of company cash flows. To be financially viable, the returns generated by a company's net assets must be higher than the cost of capital.
This document discusses various investment rules used in capital budgeting decisions, including the net present value (NPV) rule and alternative rules. It provides the following key points:
- The preferred rule is NPV, which accepts projects with positive NPV and rejects those with negative NPV.
- Common alternative rules include payback period, accounting rate of return, internal rate of return, and profitability index. These rules are easier to calculate but have limitations.
- A survey found that three-quarters of companies use IRR and nearly three-quarters use NPV when evaluating projects. Payback period and accounting rate of return are also commonly used.
- Alternative rules can be biased against long-
Accounting provides essential information about a company's financial situation and performance. It records, classifies, and summarizes business transactions and events in a standardized language using accounting principles. This information is important for both internal and external users. Investors, managers, and other decision makers rely on accounting data to assess the company's profitability, debts, cash flows, and overall financial position over time. How financial information is presented can influence perceptions of the company, so it is important for managers to understand accounting and ensure the reports provide a true and fair view.
This document discusses different profitability ratios used to analyze financial performance, including return on sales (ROS), return on assets (ROA), and return on equity (ROE). ROS compares net profit to sales and shows profit as a percentage of each sale. ROA compares net profit or earnings to total assets to measure return on invested capital. ROE compares net profit to equity to measure return to shareholders. The document provides formulas to calculate each ratio and explains they are useful for comparing performance over time, against competitors, and targeted levels that depend on business risk.
The document provides a simplified overview of key elements in a typical balance sheet:
1) Assets are investments where a company puts its money, including fixed assets, inventory, accounts receivable, and cash.
2) Liabilities and equity represent where the company gets its money, including long-term debt, short-term debt, accounts payable, and equity from shareholders.
3) The balance sheet balances because the total assets must equal the total liabilities and equity, since all money received is either invested as assets or used to finance operations.
The document discusses tax structuring or planning for acquisitions, with the goals of minimizing tax obligations for the target company through measures like maximizing tax deductible interest payments, and maximizing cashflow to target company shareholders through setting up offshore companies to reduce withholding and capital gains taxes and using shareholder loans to reduce cash trapped in project companies.
The document discusses financial statements, including the income statement, balance sheet, statement of retained earnings, and statement of cash flows. It provides details on the key components and purposes of each statement. The income statement shows a company's revenues, expenses and profits over a period of time. The balance sheet outlines a company's assets, liabilities, and shareholders' equity at a point in time. The statement of retained earnings shows how much earnings have been retained in the business each year. And the statement of cash flows provides information on a company's cash inflows and outflows from operating, investing, and financing activities.
This document discusses various topics relating to financial assets, including cash, marketable securities, receivables, and notes receivable. It provides information on how these assets are valued for financial statements, cash management techniques, accounting for uncollectible accounts receivable, and calculating interest revenue for notes receivable. Worked examples are provided to illustrate estimating credit losses and recording interest earned on a short-term note receivable.
Investment advince from wayne lippman : lippman & Associates CPA'sWayne Lippman
1.Classification and reporting of Investments: trading securities, available-for-sale securities and held-to-maturity securities.
2.Investments recorded and reported using the equity method.
3. The fair value option reporting for investments.
This document discusses the costs, revenue, and objectives of firms. It defines key concepts like total cost, average total cost, fixed cost, variable cost, total revenue, and average revenue. It explains how to calculate these terms and how costs and revenues change with different levels of output. The objectives of firms are also covered, including survival, growth, social welfare, profit satisficing, and profit maximization. Profit is maximized when the difference between revenue and costs is greatest. Firms aim to increase profits by reducing costs and raising revenues.
This document outlines accounting standards for government grants in India. It discusses the recognition and types of government grants, including monetary and non-monetary grants. It also addresses the treatment of monetary grants related to depreciable and non-depreciable fixed assets as well as grants related to revenue. The document concludes by discussing disclosure requirements and significant differences between this standard and IFRS/IAS-20 and US GAAP.
The document discusses a cash flow statement, which reflects sources and uses of cash from operating, investing, and financing activities. Operating activities relate to day-to-day business operations and include cash from sales, collections from debtors, and expenses. Investing activities involve the purchase and sale of long-term assets and investments. Financing activities relate to changes in a company's debt and equity capital structure, such as issuing shares or taking out loans. A cash flow statement provides useful information but has some limitations as precisely defining "cash" can be difficult.
The document summarizes an agenda and presentations for a K-1 Boot Camp. The agenda includes a line-by-line review of the Schedule K-1, a discussion of the differences between traders and investors, varying presentations of Schedule K-1 information between funds, and summaries of common footnotes included on Schedule K-1s. The presentations will be given by tax professionals from Anchin, Block & Anchin and Decosimo Certified Public Accountants.
A balance sheet is a statement of the assets and liabilities of a business on a particular date. It is called a balance sheet because it shows the balances of ledger accounts after preparing trading, profit and loss statements. Assets are shown on the right side and reflect debit balances, while liabilities are shown on the left side and reflect credit balances. The balance sheet provides a snapshot of a company's financial position by listing what it owns (assets) and what it owes (liabilities), including long-term debt, current liabilities, and capital/equity.
This document outlines accounting standards for foreign exchange transactions and the translation of foreign branch financial statements. It discusses relevant definitions, how to record foreign exchange transactions, accounting for changes in exchange rates after initial recognition for both monetary and non-monetary items, accounting for forward exchange contracts, and the translation of foreign branch financial statements.
This document provides an overview of the different sources of corporate financing, including internally generated funds, equity issues, and debt issues. It defines key terms related to equity such as common stock, preferred stock, treasury stock, authorized shares, issued shares, and outstanding shares. It also discusses the characteristics of different types of debt such as secured vs. unsecured debt, callable bonds, and convertible securities. The document uses examples to illustrate equity terminology and scenarios involving debt conversions.
This document discusses strategies for managing a firm's working capital, including accounts receivable, inventory, and cash. It covers establishing credit policies, analyzing customer creditworthiness, collecting accounts receivable, managing inventory levels, and investing idle cash. The goal is to minimize costs associated with carrying accounts receivable, inventory, and cash while maintaining sufficient liquidity to operate the business.
The document discusses key accounting concepts and financial statements. It explains that the trial balance ensures debits equal credits and lists accounts and their balances as an example trial balance. It defines the balance sheet as summarizing assets, liabilities, and equity at a point in time. The income statement is summarized as measuring financial performance over an accounting period by reporting revenues and expenses. Net income is noted as increasing owner equity rather than being an asset. Charts also illustrate the relationship between the key financial statements and owner equity.
This document provides an overview of the BA4 - Basic Finance course. It defines basic finance as the management of assets and money with the primary goals of increasing profit and minimizing risks. The document discusses different sources of capital for businesses, including owners' savings and loans from banks or creditors. It also outlines key goals of business finance such as maximizing profit, profitability, and present net worth while maintaining adequate cash flow and balancing risks and returns. Net present value is defined as the value now of all future cash flows from an investment discounted at a given interest rate.
The statement of owner's equity document discusses the following:
1) The statement of owner's equity shows the owner's capital account balance at the beginning of the period as the first item.
2) It also includes items such as net income, withdrawals, contributions, distributions, and changes in valuation to calculate the ending owner's equity.
3) The document also discusses how investments are classified into trading securities, available-for-sale securities, or held-to-maturity securities based on management's intent.
Barco's segment analysis shows that its Healthcare segment generates the highest returns with the least capital intensity, while Entertainment consumes over 50% of invested capital and generates returns close to the cost of capital. Economic profit improved in 2016 after declining since 2012, driving share price gains. However, there remains a large gap between Barco's implied stock price returns of low single digits and its recent economic returns. Fractal Value Advisors can help Barco management better communicate its performance and strategy using economic measures like CFROI to increase shareholder value.
This chapter discusses accounting for intercorporate investments and consolidations. It covers short-term and long-term investments in debt and equity securities, as well as the market and equity methods for accounting for investments. The chapter also addresses preparing consolidated financial statements, accounting for minority interests, goodwill, and impairment of goodwill.
Net assets are the total assets of a company minus any spontaneous funds. Spontaneous funds are short-term liabilities like payables that do not have an explicit cost. Financing net assets has a cost, known as the cost of capital. The cost of equity financing for shareholders is considered the cost of capital since shareholders expect a return as the residual claimants of company cash flows. To be financially viable, the returns generated by a company's net assets must be higher than the cost of capital.
This document discusses various investment rules used in capital budgeting decisions, including the net present value (NPV) rule and alternative rules. It provides the following key points:
- The preferred rule is NPV, which accepts projects with positive NPV and rejects those with negative NPV.
- Common alternative rules include payback period, accounting rate of return, internal rate of return, and profitability index. These rules are easier to calculate but have limitations.
- A survey found that three-quarters of companies use IRR and nearly three-quarters use NPV when evaluating projects. Payback period and accounting rate of return are also commonly used.
- Alternative rules can be biased against long-
Accounting provides essential information about a company's financial situation and performance. It records, classifies, and summarizes business transactions and events in a standardized language using accounting principles. This information is important for both internal and external users. Investors, managers, and other decision makers rely on accounting data to assess the company's profitability, debts, cash flows, and overall financial position over time. How financial information is presented can influence perceptions of the company, so it is important for managers to understand accounting and ensure the reports provide a true and fair view.
This document discusses different profitability ratios used to analyze financial performance, including return on sales (ROS), return on assets (ROA), and return on equity (ROE). ROS compares net profit to sales and shows profit as a percentage of each sale. ROA compares net profit or earnings to total assets to measure return on invested capital. ROE compares net profit to equity to measure return to shareholders. The document provides formulas to calculate each ratio and explains they are useful for comparing performance over time, against competitors, and targeted levels that depend on business risk.
The document provides a simplified overview of key elements in a typical balance sheet:
1) Assets are investments where a company puts its money, including fixed assets, inventory, accounts receivable, and cash.
2) Liabilities and equity represent where the company gets its money, including long-term debt, short-term debt, accounts payable, and equity from shareholders.
3) The balance sheet balances because the total assets must equal the total liabilities and equity, since all money received is either invested as assets or used to finance operations.
The document discusses tax structuring or planning for acquisitions, with the goals of minimizing tax obligations for the target company through measures like maximizing tax deductible interest payments, and maximizing cashflow to target company shareholders through setting up offshore companies to reduce withholding and capital gains taxes and using shareholder loans to reduce cash trapped in project companies.
The document discusses financial statements, including the income statement, balance sheet, statement of retained earnings, and statement of cash flows. It provides details on the key components and purposes of each statement. The income statement shows a company's revenues, expenses and profits over a period of time. The balance sheet outlines a company's assets, liabilities, and shareholders' equity at a point in time. The statement of retained earnings shows how much earnings have been retained in the business each year. And the statement of cash flows provides information on a company's cash inflows and outflows from operating, investing, and financing activities.
This document discusses various topics relating to financial assets, including cash, marketable securities, receivables, and notes receivable. It provides information on how these assets are valued for financial statements, cash management techniques, accounting for uncollectible accounts receivable, and calculating interest revenue for notes receivable. Worked examples are provided to illustrate estimating credit losses and recording interest earned on a short-term note receivable.
Investment advince from wayne lippman : lippman & Associates CPA'sWayne Lippman
1.Classification and reporting of Investments: trading securities, available-for-sale securities and held-to-maturity securities.
2.Investments recorded and reported using the equity method.
3. The fair value option reporting for investments.
This document discusses the costs, revenue, and objectives of firms. It defines key concepts like total cost, average total cost, fixed cost, variable cost, total revenue, and average revenue. It explains how to calculate these terms and how costs and revenues change with different levels of output. The objectives of firms are also covered, including survival, growth, social welfare, profit satisficing, and profit maximization. Profit is maximized when the difference between revenue and costs is greatest. Firms aim to increase profits by reducing costs and raising revenues.
This document outlines accounting standards for government grants in India. It discusses the recognition and types of government grants, including monetary and non-monetary grants. It also addresses the treatment of monetary grants related to depreciable and non-depreciable fixed assets as well as grants related to revenue. The document concludes by discussing disclosure requirements and significant differences between this standard and IFRS/IAS-20 and US GAAP.
The document discusses a cash flow statement, which reflects sources and uses of cash from operating, investing, and financing activities. Operating activities relate to day-to-day business operations and include cash from sales, collections from debtors, and expenses. Investing activities involve the purchase and sale of long-term assets and investments. Financing activities relate to changes in a company's debt and equity capital structure, such as issuing shares or taking out loans. A cash flow statement provides useful information but has some limitations as precisely defining "cash" can be difficult.
The document summarizes an agenda and presentations for a K-1 Boot Camp. The agenda includes a line-by-line review of the Schedule K-1, a discussion of the differences between traders and investors, varying presentations of Schedule K-1 information between funds, and summaries of common footnotes included on Schedule K-1s. The presentations will be given by tax professionals from Anchin, Block & Anchin and Decosimo Certified Public Accountants.
A balance sheet is a statement of the assets and liabilities of a business on a particular date. It is called a balance sheet because it shows the balances of ledger accounts after preparing trading, profit and loss statements. Assets are shown on the right side and reflect debit balances, while liabilities are shown on the left side and reflect credit balances. The balance sheet provides a snapshot of a company's financial position by listing what it owns (assets) and what it owes (liabilities), including long-term debt, current liabilities, and capital/equity.
This document outlines accounting standards for foreign exchange transactions and the translation of foreign branch financial statements. It discusses relevant definitions, how to record foreign exchange transactions, accounting for changes in exchange rates after initial recognition for both monetary and non-monetary items, accounting for forward exchange contracts, and the translation of foreign branch financial statements.
This document provides an overview of the different sources of corporate financing, including internally generated funds, equity issues, and debt issues. It defines key terms related to equity such as common stock, preferred stock, treasury stock, authorized shares, issued shares, and outstanding shares. It also discusses the characteristics of different types of debt such as secured vs. unsecured debt, callable bonds, and convertible securities. The document uses examples to illustrate equity terminology and scenarios involving debt conversions.
This document discusses strategies for managing a firm's working capital, including accounts receivable, inventory, and cash. It covers establishing credit policies, analyzing customer creditworthiness, collecting accounts receivable, managing inventory levels, and investing idle cash. The goal is to minimize costs associated with carrying accounts receivable, inventory, and cash while maintaining sufficient liquidity to operate the business.
The document discusses key accounting concepts and financial statements. It explains that the trial balance ensures debits equal credits and lists accounts and their balances as an example trial balance. It defines the balance sheet as summarizing assets, liabilities, and equity at a point in time. The income statement is summarized as measuring financial performance over an accounting period by reporting revenues and expenses. Net income is noted as increasing owner equity rather than being an asset. Charts also illustrate the relationship between the key financial statements and owner equity.
This document provides an overview of the BA4 - Basic Finance course. It defines basic finance as the management of assets and money with the primary goals of increasing profit and minimizing risks. The document discusses different sources of capital for businesses, including owners' savings and loans from banks or creditors. It also outlines key goals of business finance such as maximizing profit, profitability, and present net worth while maintaining adequate cash flow and balancing risks and returns. Net present value is defined as the value now of all future cash flows from an investment discounted at a given interest rate.
The statement of owner's equity document discusses the following:
1) The statement of owner's equity shows the owner's capital account balance at the beginning of the period as the first item.
2) It also includes items such as net income, withdrawals, contributions, distributions, and changes in valuation to calculate the ending owner's equity.
3) The document also discusses how investments are classified into trading securities, available-for-sale securities, or held-to-maturity securities based on management's intent.
Barco's segment analysis shows that its Healthcare segment generates the highest returns with the least capital intensity, while Entertainment consumes over 50% of invested capital and generates returns close to the cost of capital. Economic profit improved in 2016 after declining since 2012, driving share price gains. However, there remains a large gap between Barco's implied stock price returns of low single digits and its recent economic returns. Fractal Value Advisors can help Barco management better communicate its performance and strategy using economic measures like CFROI to increase shareholder value.
This chapter discusses accounting for intercorporate investments and consolidations. It covers short-term and long-term investments in debt and equity securities, as well as the market and equity methods for accounting for investments. The chapter also addresses preparing consolidated financial statements, accounting for minority interests, goodwill, and impairment of goodwill.
This chapter discusses accounting for financial assets including debt investments and equity investments. For debt investments, companies can measure them at either amortized cost or fair value. Equity investments are generally measured at fair value. The equity method is used for investments that allow significant influence, generally between 20-50% ownership. Control of over 50% requires consolidated financial statements. Examples are provided to illustrate journal entries for the acquisition, interest/dividends, fair value adjustments, and disposal of various financial assets.
Bic Group - Overview of the value creation and implied expectationsGuillaume Danis
BIC has consistently delivered high returns on invested capital (ROIC) due to its resilient profitability, characteristics of a business with an economic moat. However, BIC's recent underperformance is linked to a decline in economic profit in 2016 and anticipated further pressure. Cash flow return on investment (CFROI), a comprehensive performance measure, reveals a similar picture of high returns. But the current share price implies that investors expect BIC to lose its competitive advantage and see profitability decline towards the cost of capital.
This document summarizes the key aspects of Ind AS 27 regarding separate financial statements. Ind AS 27 prescribes the accounting and disclosure requirements for investments in subsidiaries, joint ventures and associates when an entity prepares separate financial statements. It allows investments to be accounted for either at cost or in accordance with Ind AS 109. The standard also provides definitions, guidance on preparation of separate financial statements for investment entities, and disclosure requirements.
This document summarizes key aspects of accounting for financial instruments under Ind AS, including:
- The definition of financial instruments and whether certain items qualify.
- Classification of financial assets and liabilities into categories such as amortized cost and fair value. Key considerations include the business model and whether contractual cash flows are solely payments of principal and interest.
- Optional elections and designations that can be made, such as irrevocably designating certain assets at fair value.
- Examples of compound instruments and how to split them into liability and equity components.
- Case studies on classifying equity shares and contingent settlement provisions.
The document defines an investment holding company (IHC) as a company that derives at least 80% of its gross income from holding investments. IHCs treat income like dividends and interest as "unearned income" and can only deduct a fraction of expenses. In contrast, an investment dealing company actively buys and sells investments and treats income as normal business income with full deduction of expenses. The document provides examples of computing an IHC's permitted expense fraction and determining IHC status based on the 80% income criterion.
Solutions Manual for Advanced Accounting 11th Edition by BeamsZiaPace
Full download : https://downloadlink.org/p/solutions-manual-for-advanced-accounting-11th-edition-by-beams/ Solutions Manual for Advanced Accounting 11th Edition by Beams
International financial reporting standards (ifrs)pptIDBI Capital
International Financial Reporting Standards (IFRS) are a global set of accounting standards meant to provide consistency and transparency in financial reporting around the world. IFRS provide rules that accountants must follow to prepare financial statements that are comparable, understandable, reliable and relevant to both internal and external users. IFRS financial statements include a statement of financial position, statement of comprehensive income, statement of changes in equity, and cash flow statement. Many countries around the world either require or allow the use of IFRS to standardized financial reporting practices globally.
This chapter discusses long-term investments, including debt investments and equity investments. There are three categories of debt investments based on the company's intentions: held-for-collection, held-for-collection and selling, and trading. Equity investments can be classified as trading or non-trading depending on the level of ownership and intentions. Holdings between 20-50% require use of the equity method, where the investment is adjusted for the investor's share of earnings/losses and dividends.
Chapter Two CFS.pptx consolidated financial statementsKalkaye
This document discusses consolidated financial statements (CFS) based on IFRS 10. It defines CFS as presenting the financials of a parent and its subsidiaries as a single economic entity. A parent that controls one or more other entities must present CFS. Control exists when a parent has power over a subsidiary and exposure or rights to variable returns, and can use its power to affect returns. The document outlines the criteria for CFS, accounting requirements, steps to prepare CFS including eliminating intercompany transactions and the parent's investment account, and provides examples.
This document discusses retained earnings and dividends. It defines retained earnings as profits generated by a corporation that are retained for future use. When dividends are declared, they reduce retained earnings. Dividends can be paid in cash, property, or additional shares. The document outlines the accounting entries for declaring and paying different types of dividends, including cash, property, share dividends, and liquidating dividends. It also discusses the effects of share splits.
The document discusses various factors that influence a company's capital structure and theories around optimal capital structure. It covers factors like financial leverage, growth, costs, and investor requirements. It also discusses reasons for changing capitalization like restoring financial balance or meeting legal needs. Several capital structure theories are examined, including the net income approach, net operating income approach, and MM hypotheses with and without taxes. The document also discusses concepts like indifference points, financial break even points, and how debt-equity mix can impact firm value.
The document discusses the Statement of Changes in Equity (SoCE) and how it differs based on the form of business organization. It covers the key equity accounts used in sole proprietorships, partnerships, and corporations. For sole proprietorships, the SoCE summarizes the transactions in the owner's capital account. For partnerships, separate capital and drawings accounts are maintained for each partner and net income is allocated based on profit sharing ratios. Corporations use capital stock, additional paid-in capital, and retained earnings accounts rather than individual partner capital accounts.
The document discusses capital structure and various theories related to it. It defines capital structure as the combination of capital from different sources of financing. It then discusses factors that affect capital structure decisions like control, risk, cost, size and nature of business. It explains optimal capital structure as the perfect mix of debt and equity that maximizes firm value while minimizing cost of capital. It also discusses various methods of analyzing optimal capital structure including EBIT-EPS analysis and indifference point analysis. Finally, it summarizes different theories around capital structure like net income, net operating income, traditional and Modigliani-Miller approaches.
The document discusses various methods of financing for businesses. It describes capital structure as the combination of debt and equity used to finance a company's assets. It then discusses three main methods of financing - equity financing, debt financing, and lease financing. Equity financing involves selling ownership stakes, debt financing involves taking loans that must be repaid with interest, and lease financing allows using assets without ownership through rental agreements.
This document discusses sources of internal financing such as retained earnings, amortization, and provisions. It defines these terms and explains how they are used to facilitate internal financing. The document also covers inter-company financing, defining it as loans between business units within a company. Inter-company loans can help address cash flow issues and are often cheaper than external financing, but must follow tax rules.
This document provides an introduction to limited liability companies. It defines a limited liability company as a business structure where owners are only liable up to their investment. It discusses the two types of limited liability companies - public and private. Public companies must meet minimum shareholder, capital, and reporting requirements, while private companies have fewer requirements. The document outlines the management, capital structure as shares, types of shares, how dividends are paid, use of debentures, and key accounting aspects like the income statement, appropriation of profit, and balance sheet presentation for a limited liability company.
Similar to Role of Private Equity In Successful Debt-to-Equity Conversion [Ted Cominos] (20)
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Embarking on the journey to acquire a farmhouse for sale is just the beginning; the real investment lies in crafting an environment that contributes to our mental and physical well-being while satisfying the soul. At Farmlandbazaar.com, India’s leading online marketplace dedicated to farm land, farmhouses, and agricultural lands, we understand the importance of transforming a humble farmland into a warm and inviting sanctuary. Let's explore the fundamental aspects that can elevate your farmhouse into a tranquil haven.
AVRUPA KONUTLARI ESENTEPE - ENGLISH - Listing TurkeyListing Turkey
Looking for a new home in Istanbul? Look no further than Avrupa Konutlari Esentepe! Our beautifully designed homes provide the perfect blend of luxury and comfort, making them the perfect choice for anyone looking for a high-quality home in the city.
With a wide range of apartment types available, from 1+1 to 4+1, we have something to suit every need and budget. Each apartment is designed with attention to detail and features spacious and bright living areas, making them the perfect place to relax and unwind after a long day.
One of the things that sets Avrupa Konutlari Esentepe apart from other developments is our focus on creating a community that is both comfortable and convenient. Our homes are surrounded by lush green spaces, perfect for enjoying a peaceful stroll or having a picnic with friends and family. Additionally, our complex includes a variety of social and recreational amenities, such as swimming pools, sports fields, and playgrounds, making it easy for residents to stay active and socialize with their neighbors.
https://listingturkey.com/property/avrupa-konutlari-esentepe/
BEST FARMLAND FOR SALE | FARM PLOTS NEAR BANGALORE | KANAKAPURA | CHICKKABALP...knox groups real estate
welcome to knox groups real estate company in Bangalore. best farm land for sale near Bangalore and madhugiri . Managed farmland near Kanakapura and Chickkabalapur get know more details about the projects .Knox groups is a leading real estate company dedicated to helping individuals and businesses navigate the dynamic real estate market. With our extensive knowledge, experience, and commitment to excellence, we deliver exceptional results for our clients. Discover the perfect foundation for your agricultural aspirations with KNOX Groups' prime farm lands. These aren't just plots; they're the fertile grounds where vibrant crops flourish, livestock thrives, and unique agricultural ventures come to life. At KNOX, we go beyond selling land we curate sustainable ecosystems, ensuring that your journey toward agricultural success is seamless and prosperous.
Discover Yeni Eyup Evleri 2, nestled among the rising values of Eyupsultan, offering the epitome of modern living in Istanbul.
With its spacious living areas, contemporary architecture, and meticulous details, Yeni Eyup Evleri 2 is poised to be the star of your happiest moments. Situated in the new favorite district of Eyupsultan, claim your spot and unlock the doors to a peaceful life alongside your loved ones. Nestled next to the historical and natural beauties of Eyupsultan, embrace the comfort of modern living and rediscover life.
Social Amenities:
Yeni Eyup 2 offers a life filled with joy with its green landscaping areas, gym, sauna, children’s play areas, café, outdoor pool, and basketball court. Reserve your place for unforgettable moments!
Reliable Structure:
With 1+1, 2+1, and 3+1 apartment options, Yeni Eyup Evleri 2 is designed with first-class materials and craftsmanship. The doors to a safe and comfortable life are here! Choose the option that suits you best and step into your dream home.
Project:
Yeni Eyup 2 is conveniently located, with Istanbul Airport just 26 minutes away, the Mecidiyeköy Metro Line 4 minutes away, and the Tram Stop 5 minutes away, making your life easier with its central location.
Location:
Your home is positioned in a privileged location, providing easy access to the city center, shopping malls, restaurants, schools, and other important places.
Yeni Eyup 2 offers 1+1, 2+1, and 3+1 apartment options designed to meet different needs. Find an option suitable for every lifestyle and open the doors to a comfortable life in your dream home.
https://listingturkey.com/property/yeni-eyup-evleri-2/
The KA Housing - Catalogue - Listing TurkeyListing Turkey
Welcome to KA Housing, a distinguished real estate development nestled in the heart of Eyüpsultan, one of Istanbul’s most promising districts.
Just 10 minutes from the bustling city center, Eyüpsultan offers a serene escape with the convenience of urban living. The direct metro line ensures seamless connectivity to all parts of Istanbul, making it an ideal location for residents who seek both tranquility and vibrancy.
KA Housing boasts unparalleled accessibility, with proximity to Istanbul Airport only 30 minutes away, facilitating easy international travel. Effortless city access is guaranteed by direct metro and transportation links to Istanbul’s cultural and commercial hubs. Quick access to key metro lines connects you to every corner of the city within minutes, making commuting and exploring the city hassle-free.
The development offers luxurious living spaces with a range of unit layouts from 1+1 to 4+1, designed with meticulous attention to detail. Each unit features balconies or terraces, providing stunning vistas of Istanbul and enhancing the living experience. High-quality materials and superior craftsmanship ensure durability and elegance, while sound-proof insulation and high ceilings (2.95 m) offer comfort and sophistication.
Residents of KA Housing enjoy exclusive on-site amenities, including a state-of-the-art gym, outdoor swimming pool, yoga area, and walking paths. Entertainment options abound with a private cinema, children’s playground, and a variety of dining options including a café and restaurant. Security and convenience are paramount with 24/7 security, a dedicated carpark garage, and an IP intercom system.
KA Housing represents a prime investment opportunity with limited availability in a high-demand area, ensuring enduring value and potential for lucrative returns. Homes in this development provide exceptional value without compromising on quality, offering affordable luxury for discerning buyers. The construction is of the highest quality, built to the latest seismic and disaster resistance standards, ensuring safety and resilience.
The community and surroundings of KA Housing are enriched by close proximity to prestigious universities such as Haliç University, Bilgi University, and Istanbul Ticaret University, making it an ideal location for students and academics. The development is adjacent to the Alibeyköy stream leading into the Halic waters, offering serene natural escapes amidst lush greenery. Residents can enjoy the cultural richness of the area, surrounded by historical and cultural landmarks that blend leisure, nature, and culture seamlessly.
https://listingturkey.com/property/the-ka-housing/
Sense Levent Kagithane Catalog - Listing TurkeyListing Turkey
Sense Levent offers a luxurious living experience in the heart of Istanbul’s vibrant Levent district.
This cutting-edge development seamlessly integrates modern design with natural elements, featuring live evergreen plants maintained by an advanced irrigation system, ensuring lush greenery year-round.
The building’s elegant ceramic balconies are both stylish and durable, enhancing the overall aesthetic and functionality. Residents can enjoy the 700m Sky Lounge, which provides breathtaking views of Istanbul and a perfect space to relax and unwind.
Sense Levent promotes a healthy and active lifestyle with a full gym, swimming pool, sauna, and steam room, all available in the building. The interiors are crafted with high-quality materials, ensuring a luxurious and inviting living space.
Designed with young professionals in mind, Sense Levent features 1+1 and 2+1 units with smart floor plans and balconies. The project promises high investment returns, with an expected annual return of 6.5-7%, significantly above Istanbul’s average ROI.
Located in the rapidly growing and highly desirable Levent area, the development benefits from ongoing urban regeneration projects. Its prime location offers proximity to shopping malls, municipal buildings, universities, and public transportation, adding immense value to your investment.
Early investors can take advantage of discounted units during the construction phase, with an expected capital appreciation of +45% USD upon completion. Property Turkey provides comprehensive rental management services, ensuring a seamless and profitable investment experience.
Additionally, robust legal support and significant tax advantages are available through Property Turkey’s licensed Real Estate Investment Fund. Levent is a dynamic urban hub, ideal for young professionals with its numerous corporate headquarters and shopping malls.
Sense Levent is more than just a residence; it’s a place where dreams and opportunities come to life. Contact us today to secure your place in this exclusive development and experience the best of Istanbul living. Sense Levent: Sense the Opportunity. Live the Dream.
https://listingturkey.com/property/sense-levent/
Serviced Apartment Ho Chi Minh For RentalGVRenting
GVRenting is the leading rental real estate company in Vietnam. We help you to find a serviced apartment for rent in Ho Chi Minh & Saigon. Discover our broad range of rental properties in Vietnam.
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The SVN® organization shares a portion of their new weekly listings via their SVN Live® Weekly Property Broadcast. Visit https://svn.com/svn-live/ if you would like to attend our weekly call, which we open up to the brokerage community.
If you're Planning to Build a House in Haldwani, Understanding the House Construction Cost in Haldwani is crucial. It's important to grasp the direct and indirect cost factors entailed in the Construction process before Initiating any work. This Understanding is pivotal for Efficient Budget allocation, allowing you to plan your finances more Effectively. Construction expenses can vary Significantly, Influenced by Diverse Elements such as site Location, raw material prices, Labour charges, and various other variables. Here at Geomatrix, we pride Ourselves on offering competitive rates for house construction in Haldwani, ensuring affordability without Compromising on quality and providing the best options within your budget. For a precise evaluation of the cost involved in constructing your dream home, consult our team of architects and construction experts.
For more information visit:
https://geomatrix.co.in/services/real-estate-project-management-in-haldwani/
At Geomatrix, we Pride Ourselves on our Commitment to Superior Craftsmanship and client satisfaction. Our team Consists of Highly Qualified specialists including Architects, Engineers, project Managers, and skilled labourers who work seamlessly together to achieve ourclients' Objectives. Geomatrix is recognized as the Best Construction Company in Haldwani, Dedicated to bringing visions to life with unparalleled Expertise and Professionalism.
For more information visit:
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Role of Private Equity In Successful Debt-to-Equity Conversion [Ted Cominos]
1. Role of Private Equity
In Successful Debt-to-Equity Conversion
Ted Cominos
2. Considering a conversion of debt-to-equity, BUT…
►What to do with it?
►Reputational concerns!
►Management concerns!
►What’s the recovery plan?
►How to fund new capital needs?
►Clear path to exit/upside?
3. Role that private equity can play…
►Core business
►Reputationally strong
►Strong management
►Business and recovery planning
►New capital contributions/management
►Maximize value & exit prospects
Turnaround
Management
Growth
Capital
Value
and Exit
Enhancement
Business
Planning and
Development
Operational
Streamlining
4. Role that IFI’s can play…
►Private capital for SEE funds is very tight
►Take LP stakes in new breed of SPF’s
►Promote corporate recovery
►Promote elimination of NPLs
Development banks committed
to economic recovery
5. Establish special purpose funds…
Banks
Limited Partners
IFI’s
Limited Partners
€150m In-Kind Contributions
of Converted Equity Stakes
€150m of Cash
Commitments
Romanian Corporate Recovery Fund No.1
Special Purpose Private Equity Fund
Limited Partnership
See Private Equity Management Team
General Partner
Portfolio Company
No.1
Portfolio Company
No.2
Portfolio Company
No.3
Portfolio Company
No.4
Portfolio Company
No.6
Portfolio Company
No.5
Portfolio Company
No.7
6. A few of the benefits…
►Upside prospects…offset certain losses
►Additional exit prospects via LP secondary market
►Recovery of certain potentially viable corporates/customers
►Macro-employment prospects enhanced
►Replacement of certain NPLs with PLs
7. Accounting treatment under IFRS…
► Accounting treatment for the bank under IFRS of a debt for equity swap between a
corporate and the bank where equity instruments issued by the corporate to the
bank are immediately contributed to a PE fund in exchange of shares of the PE fund;
► The extinguished debt of the corporate is derecognised by the bank at book value;
► The equity instruments (shares) received from the PE fund in exchange of equity
instruments issued by the corporate as compensation paid for the extinguishment of
existing financial debt should be accounted at fair value;
► The difference between the book value of the extinguished debt and the fair value of
the equity instruments received from the PE fund should be recognised through
profit and loss;
► Past provisions eventually made against the extinguished debt are reversed through
profit and loss;
► The PE equity instruments should be classified as available for sale investment with
subsequent revaluation gains or losses accounted through equity;
8. Accounting treatment under IFRS (cont’d)…
► Accounting treatment for the corporate under IFRS (IFRIC 19) of a debt for equity
swap
► Equity instruments issued to a creditor to extinguish a financial liability are
“consideration paid” in accordance with paragraph 41 of IAS 39. As a result, the
financial liability is derecognised and the equity instruments issued are treated as
consideration paid to extinguish that financial liability;
► IFRIC 19 states that equity Instruments issued in a debt for equity swap should be
measured at the fair value of the equity instruments issued, if this can be determined
reliably. If the fair value of the equity instruments issued is not reliably determinable,
the equity instruments should be measured by reference to the fair value of the
financial liability extinguished as of the date of extinguishment;
► Any difference between the carrying amount of the financial liability that is
extinguished and the fair value of the equity instruments issued is recognised
immediately in profit or loss. The resulting gain or loss is disclosed separately on the
statement of comprehensive income, or the separate income statement (if
presented), or in the notes.
9. Working example…
Corporate A Bank A
Total equity EUR 10 million Loan book value (NPL) EUR 20 million
Total financial debt EUR 20 million Loan provision EUR 5 million
Corporate fair value EUR 5 million Loan net book value EUR 15 million
Financial impact of debt for equity swap of EUR 8 million
Corporate A Bank A
Total equity EUR 18 million Loan book value (Performing) EUR 12 million
Total financial debt EUR 12 million Provision EUR 0
Extinguished debt fair value EUR 9 million Equity investment EUR 9 million
Corporate fair value EUR 14 million Pre tax profit and loss
transaction impact (IFRS):
Debt extinguishment
Equity investment
Provision reversal
Net profit/(loss)
EUR (8) million
EUR 9 million
EUR 5 million
EUR 6 million