1) The chapter defines key terms related to consolidation such as control, subsidiary, parent, non-controlling interest, and consolidated financial statements.
2) Assessing control of an investee involves considering its purpose and design, how decisions about relevant activities are made, and who has the ability to direct activities and receive returns.
3) Consolidation procedures require combining like items of the parent and subsidiaries, offsetting the parent's investment, and eliminating intragroup balances and transactions.
This document discusses financial distress and industrial sickness. It defines financial distress as defaulting on debt obligations like interest payments or dividends. Industrial sickness refers to firms that have incurred cash losses for one year and are projected to continue losing money due to issues like poor current ratios or debt-equity ratios. The document examines four sample firms to analyze factors like cash flows, current ratios, and debt-equity ratios that indicate sickness over multiple years. It also outlines various exogenous and endogenous causes of industrial sickness and measures that can be taken to prevent firms from becoming sick.
The document provides information about financial reporting and annual reports for companies. It discusses key components of annual reports including the director's report, financial statements, audit report, income statement, balance sheet, cash flow statement, and statement of owner's equity. It also covers notes to the financial statements, stakeholders' interests in financial statements, qualities and limitations of financial statements, responsibilities for financial statements, misleading financial statements, and consequences of unreliable financial statements.
The document provides an overview of consolidated financial statements. It discusses how a parent company combines the financial statements of its subsidiaries by eliminating reciprocal accounts and adjusting for the difference between the parent's cost of its investment and the book value of the subsidiary's underlying equity. The objectives covered include recognizing the benefits of consolidated statements, requirements for inclusion of subsidiaries, allocating excess investment costs, preparing consolidated balance sheets at acquisition and subsequent periods, accounting for minority interests, and preparing consolidated income statements.
This document summarizes a presentation on the International Financial Reporting Standards Conceptual Framework. It discusses key concepts such as the objective of financial reporting which is to provide useful information to investors, lenders and other creditors. It also discusses the qualitative characteristics of relevant and faithfully represented financial information, and fundamental elements such as assets, liabilities and equity. The presentation provides examples and discusses concepts such as recognition and measurement in financial reporting.
This presentation broadly covers Mumbai University MMS Semester IV - Elective - Treasury Management.
It starts with History; factors leading to modern treasury management; main objectives; Integrated treasury; departments of treasury - Front, Middle and Back office.
www.abhijeetdeshmukh.com
This document discusses capital structure and leverage. It defines key terms like capital structure, financial leverage, operating leverage, degree of financial leverage (DFL), degree of operating leverage (DOL), and degree of total leverage (DTL). It explains how financial and operating leverage can both increase profits but also increase risk and variability in results. The optimal capital structure balances these risks and rewards to maximize stock price.
1) The chapter defines key terms related to consolidation such as control, subsidiary, parent, non-controlling interest, and consolidated financial statements.
2) Assessing control of an investee involves considering its purpose and design, how decisions about relevant activities are made, and who has the ability to direct activities and receive returns.
3) Consolidation procedures require combining like items of the parent and subsidiaries, offsetting the parent's investment, and eliminating intragroup balances and transactions.
This document discusses financial distress and industrial sickness. It defines financial distress as defaulting on debt obligations like interest payments or dividends. Industrial sickness refers to firms that have incurred cash losses for one year and are projected to continue losing money due to issues like poor current ratios or debt-equity ratios. The document examines four sample firms to analyze factors like cash flows, current ratios, and debt-equity ratios that indicate sickness over multiple years. It also outlines various exogenous and endogenous causes of industrial sickness and measures that can be taken to prevent firms from becoming sick.
The document provides information about financial reporting and annual reports for companies. It discusses key components of annual reports including the director's report, financial statements, audit report, income statement, balance sheet, cash flow statement, and statement of owner's equity. It also covers notes to the financial statements, stakeholders' interests in financial statements, qualities and limitations of financial statements, responsibilities for financial statements, misleading financial statements, and consequences of unreliable financial statements.
The document provides an overview of consolidated financial statements. It discusses how a parent company combines the financial statements of its subsidiaries by eliminating reciprocal accounts and adjusting for the difference between the parent's cost of its investment and the book value of the subsidiary's underlying equity. The objectives covered include recognizing the benefits of consolidated statements, requirements for inclusion of subsidiaries, allocating excess investment costs, preparing consolidated balance sheets at acquisition and subsequent periods, accounting for minority interests, and preparing consolidated income statements.
This document summarizes a presentation on the International Financial Reporting Standards Conceptual Framework. It discusses key concepts such as the objective of financial reporting which is to provide useful information to investors, lenders and other creditors. It also discusses the qualitative characteristics of relevant and faithfully represented financial information, and fundamental elements such as assets, liabilities and equity. The presentation provides examples and discusses concepts such as recognition and measurement in financial reporting.
This presentation broadly covers Mumbai University MMS Semester IV - Elective - Treasury Management.
It starts with History; factors leading to modern treasury management; main objectives; Integrated treasury; departments of treasury - Front, Middle and Back office.
www.abhijeetdeshmukh.com
This document discusses capital structure and leverage. It defines key terms like capital structure, financial leverage, operating leverage, degree of financial leverage (DFL), degree of operating leverage (DOL), and degree of total leverage (DTL). It explains how financial and operating leverage can both increase profits but also increase risk and variability in results. The optimal capital structure balances these risks and rewards to maximize stock price.
Audit of the Payroll and Personnel Cycle _ Accounting & AudtingCarl Hebeler
This document discusses the audit of the payroll and personnel cycle. It identifies key accounts and transactions such as wages payable, payroll taxes payable, and cash. It describes the related business functions, documents, and internal controls. It provides guidance on assessing risks, testing controls, and performing substantive tests of transactions and account balances. These include analytical procedures to identify potential misstatements, as well as detailed tests of liability and expense accounts to ensure accurate cutoff and balances. The overall goal is to obtain sufficient evidence that payroll and personnel accounts are fairly stated in accordance with GAAP.
Financial Statement Analysis: Learn The Best Tricks And Tips!Andrew Li
Learn how to read financial statements and SEC filings like an investing pro!
Also, check out the last 2 pages for an amazing and exclusive discount offer for my Udemy course on financial statement analysis!
This document summarizes key accounting concepts related to cash, receivables, and related valuation issues. It defines cash and receivables, discusses how to recognize, measure, and present them in financial statements. Specific topics covered include cash controls, restricted cash, cash equivalents, accounts and notes receivable, allowance for doubtful accounts, present value concepts for long-term notes receivable.
In Financial Accounting, a Cash Flow Statement, also known as Statement of Cash Flows (Erich A. Helfert), is a financial statement that provides details of how much a company is receiving and paying cash in an accounting period. Copy the link given below and paste it in new browser window to get more information on Investing Activities:-www.transtutors.com/homework-help/accounting/investing-activities.aspx
The document discusses the roles and responsibilities of a collecting banker when handling cheque collections. It outlines that a collecting banker can act either as a holder for value or as an agent of the customer. As a holder for value, the collecting banker enjoys rights similar to a holder in due course. As an agent, the banker must take precautions to avoid liability for conversion. The document also discusses the statutory protection provided to collecting bankers under Section 131 of the Negotiable Instruments Act if they collect payment in good faith and without negligence. It provides examples of negligence and outlines various duties and precautions collecting bankers must follow.
This document provides an introduction to financial statement analysis. It discusses the key types of financial statements, including the income statement, balance sheet, statement of changes in owner's equity, and statement of changes in financial position. It also outlines different classifications and techniques for analyzing financial statements, such as external vs internal analysis, horizontal vs vertical analysis, comparative statement analysis, trend analysis, common size analysis, funds flow analysis, cash flow analysis, and ratio analysis. The overall purpose is to introduce the reader to how financial statements are constructed and various methods for evaluating the financial and operational performance of a business based on its financial reporting.
Introduction to fixed income securitiesSameen Zaidi
This document provides an introduction to fixed income securities. It explains that fixed income securities markets have become more complex since the 1980s, with a variety of securities and derivatives. It also notes that two-thirds of outstanding securities are classified as fixed income. The document defines fixed income securities as financial claims issued by various entities that promise specified payments at future dates. It outlines some of the key participants in fixed income markets, including issuers, investors, and intermediaries. Finally, it provides brief definitions of bonds and bond markets.
The document discusses various bond valuation concepts like coupon rate, current yield, spot interest rate, yield to maturity, yield to call, and realized yield. It provides examples to calculate these measures and explains how bond prices are determined based on factors like interest rates, time to maturity, and cash flows. Bond duration is introduced as a measure of interest rate risk exposure, and bond risks from default and changes in interest rates are explained.
The document provides an overview of financial statement analysis. It discusses that financial analysis identifies the financial strengths and weaknesses of a firm by establishing relationships between balance sheet and profit/loss statement items. The key objectives of financial analysis are to evaluate a firm's profitability, debt servicing ability, business risk, and growth. Various techniques of financial analysis are also outlined, including comparative statements analysis, common-size analysis, trend analysis, and ratio analysis. The document aims to explain the concepts and applications of financial statement analysis.
IAS 36 provides guidance on impairment of assets. An impairment loss occurs when an asset's carrying amount exceeds its recoverable amount. A cash generating unit is the smallest identifiable group of assets that generates cash inflows independently of other assets. Impairment losses are first allocated to goodwill associated with the CGU, then proportionately to other assets in the CGU based on their carrying amounts.
This document discusses ratio analysis and provides a comparison of ratio analyses between two prominent Bangladeshi banks, AB Bank Limited and Eastern Bank Limited, from 2012 to 2016. Ratio analysis involves calculating and presenting relationships between financial statement items to analyze a company's financial position and performance over time and compared to other companies. The document analyzes several key ratios for the two banks, including the advances to deposits ratio, non-performing loan ratio, capital adequacy ratio, cost to income ratio, return on equity, return on assets, earnings per share, and book value per share. It finds that Eastern Bank Limited generally demonstrated better performance and financial stability based on these ratios over the period analyzed.
The document discusses the key parties involved in a public issue of securities. These include managers to the issue who oversee the process, registrars who handle applications and allotment, underwriters who guarantee subscription, bankers who collect funds, advertising agencies who promote the issue, financial institutions who may underwrite or lend, and government agencies who regulate the issue. It also outlines the process for collection centers, placement of the issue such as through a prospectus, and requirements for the prospectus content.
The document discusses various financial ratios used to analyze the financial position of a business. It defines financial ratios as relationships between accounting figures expressed mathematically. Financial ratio analysis is used to study information in financial statements, ascertain a business's overall financial position, and interpret key information. The document then discusses various types of ratios including liquidity ratios, solvency ratios, activity ratios, and profitability ratios. It provides examples of specific ratios like the current ratio, quick ratio, debt-to-equity ratio, and return on assets ratio and how they are calculated and interpreted.
This document provides an introduction to key concepts in corporate finance including what corporate finance is, its relationship to financial accounting and management accounting, the concepts of risk and return and time value of money. It discusses corporate structure including sole proprietorships, partnerships and corporations. It describes the finance function and role of the financial manager in raising, allocating and returning funds. It also covers separation of ownership and management and issues of agency theory and corporate governance.
This document summarizes key chapters from a corporate finance textbook. It outlines topics covered in each chapter such as accounting statements, net present value calculations, valuing stocks and bonds, capital budgeting techniques, and capital structure decisions. The summary provides an overview of the essential concepts, formulas, and models discussed in the textbook for corporate financial management.
This document discusses factoring, which is a financial transaction where a business sells its accounts receivable to a third party called a factor in exchange for immediate cash. There are several types of factoring described, including domestic, international, recourse, non-recourse, maturity, and invoice factoring. The key differences between factoring and a bank loan are also outlined. A case study is then provided showing how a company used export factoring and purchase order financing to fulfill several contracts requiring upfront capital.
AIS CH5 (Systems Development and Documentation Techniques).pptxEngAbdulkarimOmar
This document discusses documentation techniques used in accounting systems. It begins by outlining the purpose of documentation and why accountants need to understand documentation. The two most common documentation tools - data flow diagrams and flowcharts - are then explained in detail. Data flow diagrams graphically show the flow of data through a system using four basic elements: data sources and destinations, data flows, transformation processes, and data stores. Flowcharts depict the flow of data, documents, or information through a system using standard symbols. The differences between data flow diagrams and flowcharts are explored through an example.
The document discusses the client acceptance phase of auditing. It covers objectives like determining if there is any reason to reject or accept a client, deciding on new or continuing clients, and determining staffing needs. Procedures discussed include evaluating the client's background, determining if ethical requirements can be met, consulting predecessor auditors, preparing proposals, selecting staff, and obtaining an engagement letter. It also addresses evaluating competencies and determining if specialists are needed. Key considerations for client acceptance include ability to meet ethics and competence requirements and evaluating governance, controls and risks.
This document provides an overview of financial ratio analysis. It introduces four categories of ratios - liquidity, activity, leverage, and profitability - and discusses specific ratios within each category. These ratios are used to analyze a company's performance in areas like managing working capital and inventory, use of financial leverage, and overall profitability. The document also describes the DuPont system for performing a complete ratio analysis using return on assets and return on equity.
This document discusses the calculation of diluted earnings per share (EPS) which takes into account potential ordinary shares that could dilute basic EPS. Potential ordinary shares include convertible bonds, convertible preference shares, and share options/warrants. Diluted EPS is calculated using an "as if" scenario where these instruments are converted/exercised. Dilution occurs when diluted EPS is lower than basic EPS. The document provides examples calculating basic and diluted EPS for a company with convertible bonds outstanding and bonds that were converted during the period.
Audit of the Payroll and Personnel Cycle _ Accounting & AudtingCarl Hebeler
This document discusses the audit of the payroll and personnel cycle. It identifies key accounts and transactions such as wages payable, payroll taxes payable, and cash. It describes the related business functions, documents, and internal controls. It provides guidance on assessing risks, testing controls, and performing substantive tests of transactions and account balances. These include analytical procedures to identify potential misstatements, as well as detailed tests of liability and expense accounts to ensure accurate cutoff and balances. The overall goal is to obtain sufficient evidence that payroll and personnel accounts are fairly stated in accordance with GAAP.
Financial Statement Analysis: Learn The Best Tricks And Tips!Andrew Li
Learn how to read financial statements and SEC filings like an investing pro!
Also, check out the last 2 pages for an amazing and exclusive discount offer for my Udemy course on financial statement analysis!
This document summarizes key accounting concepts related to cash, receivables, and related valuation issues. It defines cash and receivables, discusses how to recognize, measure, and present them in financial statements. Specific topics covered include cash controls, restricted cash, cash equivalents, accounts and notes receivable, allowance for doubtful accounts, present value concepts for long-term notes receivable.
In Financial Accounting, a Cash Flow Statement, also known as Statement of Cash Flows (Erich A. Helfert), is a financial statement that provides details of how much a company is receiving and paying cash in an accounting period. Copy the link given below and paste it in new browser window to get more information on Investing Activities:-www.transtutors.com/homework-help/accounting/investing-activities.aspx
The document discusses the roles and responsibilities of a collecting banker when handling cheque collections. It outlines that a collecting banker can act either as a holder for value or as an agent of the customer. As a holder for value, the collecting banker enjoys rights similar to a holder in due course. As an agent, the banker must take precautions to avoid liability for conversion. The document also discusses the statutory protection provided to collecting bankers under Section 131 of the Negotiable Instruments Act if they collect payment in good faith and without negligence. It provides examples of negligence and outlines various duties and precautions collecting bankers must follow.
This document provides an introduction to financial statement analysis. It discusses the key types of financial statements, including the income statement, balance sheet, statement of changes in owner's equity, and statement of changes in financial position. It also outlines different classifications and techniques for analyzing financial statements, such as external vs internal analysis, horizontal vs vertical analysis, comparative statement analysis, trend analysis, common size analysis, funds flow analysis, cash flow analysis, and ratio analysis. The overall purpose is to introduce the reader to how financial statements are constructed and various methods for evaluating the financial and operational performance of a business based on its financial reporting.
Introduction to fixed income securitiesSameen Zaidi
This document provides an introduction to fixed income securities. It explains that fixed income securities markets have become more complex since the 1980s, with a variety of securities and derivatives. It also notes that two-thirds of outstanding securities are classified as fixed income. The document defines fixed income securities as financial claims issued by various entities that promise specified payments at future dates. It outlines some of the key participants in fixed income markets, including issuers, investors, and intermediaries. Finally, it provides brief definitions of bonds and bond markets.
The document discusses various bond valuation concepts like coupon rate, current yield, spot interest rate, yield to maturity, yield to call, and realized yield. It provides examples to calculate these measures and explains how bond prices are determined based on factors like interest rates, time to maturity, and cash flows. Bond duration is introduced as a measure of interest rate risk exposure, and bond risks from default and changes in interest rates are explained.
The document provides an overview of financial statement analysis. It discusses that financial analysis identifies the financial strengths and weaknesses of a firm by establishing relationships between balance sheet and profit/loss statement items. The key objectives of financial analysis are to evaluate a firm's profitability, debt servicing ability, business risk, and growth. Various techniques of financial analysis are also outlined, including comparative statements analysis, common-size analysis, trend analysis, and ratio analysis. The document aims to explain the concepts and applications of financial statement analysis.
IAS 36 provides guidance on impairment of assets. An impairment loss occurs when an asset's carrying amount exceeds its recoverable amount. A cash generating unit is the smallest identifiable group of assets that generates cash inflows independently of other assets. Impairment losses are first allocated to goodwill associated with the CGU, then proportionately to other assets in the CGU based on their carrying amounts.
This document discusses ratio analysis and provides a comparison of ratio analyses between two prominent Bangladeshi banks, AB Bank Limited and Eastern Bank Limited, from 2012 to 2016. Ratio analysis involves calculating and presenting relationships between financial statement items to analyze a company's financial position and performance over time and compared to other companies. The document analyzes several key ratios for the two banks, including the advances to deposits ratio, non-performing loan ratio, capital adequacy ratio, cost to income ratio, return on equity, return on assets, earnings per share, and book value per share. It finds that Eastern Bank Limited generally demonstrated better performance and financial stability based on these ratios over the period analyzed.
The document discusses the key parties involved in a public issue of securities. These include managers to the issue who oversee the process, registrars who handle applications and allotment, underwriters who guarantee subscription, bankers who collect funds, advertising agencies who promote the issue, financial institutions who may underwrite or lend, and government agencies who regulate the issue. It also outlines the process for collection centers, placement of the issue such as through a prospectus, and requirements for the prospectus content.
The document discusses various financial ratios used to analyze the financial position of a business. It defines financial ratios as relationships between accounting figures expressed mathematically. Financial ratio analysis is used to study information in financial statements, ascertain a business's overall financial position, and interpret key information. The document then discusses various types of ratios including liquidity ratios, solvency ratios, activity ratios, and profitability ratios. It provides examples of specific ratios like the current ratio, quick ratio, debt-to-equity ratio, and return on assets ratio and how they are calculated and interpreted.
This document provides an introduction to key concepts in corporate finance including what corporate finance is, its relationship to financial accounting and management accounting, the concepts of risk and return and time value of money. It discusses corporate structure including sole proprietorships, partnerships and corporations. It describes the finance function and role of the financial manager in raising, allocating and returning funds. It also covers separation of ownership and management and issues of agency theory and corporate governance.
This document summarizes key chapters from a corporate finance textbook. It outlines topics covered in each chapter such as accounting statements, net present value calculations, valuing stocks and bonds, capital budgeting techniques, and capital structure decisions. The summary provides an overview of the essential concepts, formulas, and models discussed in the textbook for corporate financial management.
This document discusses factoring, which is a financial transaction where a business sells its accounts receivable to a third party called a factor in exchange for immediate cash. There are several types of factoring described, including domestic, international, recourse, non-recourse, maturity, and invoice factoring. The key differences between factoring and a bank loan are also outlined. A case study is then provided showing how a company used export factoring and purchase order financing to fulfill several contracts requiring upfront capital.
AIS CH5 (Systems Development and Documentation Techniques).pptxEngAbdulkarimOmar
This document discusses documentation techniques used in accounting systems. It begins by outlining the purpose of documentation and why accountants need to understand documentation. The two most common documentation tools - data flow diagrams and flowcharts - are then explained in detail. Data flow diagrams graphically show the flow of data through a system using four basic elements: data sources and destinations, data flows, transformation processes, and data stores. Flowcharts depict the flow of data, documents, or information through a system using standard symbols. The differences between data flow diagrams and flowcharts are explored through an example.
The document discusses the client acceptance phase of auditing. It covers objectives like determining if there is any reason to reject or accept a client, deciding on new or continuing clients, and determining staffing needs. Procedures discussed include evaluating the client's background, determining if ethical requirements can be met, consulting predecessor auditors, preparing proposals, selecting staff, and obtaining an engagement letter. It also addresses evaluating competencies and determining if specialists are needed. Key considerations for client acceptance include ability to meet ethics and competence requirements and evaluating governance, controls and risks.
This document provides an overview of financial ratio analysis. It introduces four categories of ratios - liquidity, activity, leverage, and profitability - and discusses specific ratios within each category. These ratios are used to analyze a company's performance in areas like managing working capital and inventory, use of financial leverage, and overall profitability. The document also describes the DuPont system for performing a complete ratio analysis using return on assets and return on equity.
This document discusses the calculation of diluted earnings per share (EPS) which takes into account potential ordinary shares that could dilute basic EPS. Potential ordinary shares include convertible bonds, convertible preference shares, and share options/warrants. Diluted EPS is calculated using an "as if" scenario where these instruments are converted/exercised. Dilution occurs when diluted EPS is lower than basic EPS. The document provides examples calculating basic and diluted EPS for a company with convertible bonds outstanding and bonds that were converted during the period.
The document consists of letters and numbers with no context or punctuation. The letters "E" and "A" are repeated throughout with some numbers interspersed. Overall the document does not provide any clear essential information that could be summarized in 3 sentences or less.
The document outlines the faith and order of the Ethiopian Orthodox Tewahido Church, including its beliefs that it is the true church, founded by St. Frumentius in the 4th century AD. It follows the doctrine of the Seven Ecumenical Councils and believes in the Holy Trinity. The document also describes the church's order, including that it is headed by the Patriarch of Ethiopia and its holy synod, and divides the country into ecclesiastical provinces led by metropolitans.
The Ethiopian Orthodox Tewahido Church has beliefs and practices that come from traditional Christian and Ethiopian sources. It follows the holy scriptures and traditions established by the Twelve Apostles. Church leadership includes priests, deacons, and the Patriarch who is the supreme head. Important sacraments are baptism, holy communion, marriage, unction of the sick. The faith also observes fasting periods, holy days, and festivities. Members gather on Sundays and other days for prayer, liturgy, and to receive teachings.
The document appears to be sections from the website of the Ethiopian Orthodox Tewahido Church describing various aspects of its faith and order such as the number of books in the Old and New Testaments, lists of patriarchs, and dates of important church events. While the document contains many numbers and citations, it provides high-level information about the structure, texts, leadership, and history of the Ethiopian Orthodox Church.
The document contains repeated references to the website www.ethiopianorthodox.org with no other visible text content. It appears to be promoting or referencing this website address over 100 times without providing any additional context or information.