IMBA财政会计培训资料英文版(ppt 49)

Thisweek’sindividualHWPage197ofIn-classexercisesONLY1TheQualitiesofaGoodAnalystReportFormatProfessionallayoutsSmoothlydividedintosectionsSectionslogicallystructuredandconnectedClearlyworded2TheQualitiesofaGoodAnalystReportContents1.Summaryofanalysis2.Introductionofcoveredcompany2.1Industryanalysis2.2.Companyanalysis3.Qualityofearningsanalysis4.Profitabilityanalysis5.Growthanalysis6.Earningsforecasts7.Riskanalysis8.Valuation9.Recommendation3TheQualitiesofaGoodAnalystReportComments:Beaware,youmakealiving(aniceapt.,adecentwedding,agoodeducationforyourchild,acomfortableretirementplan……)fromsellingyouranalystreportstoinvestors.YoudonothavetoSTRICTLYfollowtheaforementionedformat.Usetheformatthatyoubelievesellsyouranalysiswell.Becreative!!!Beprofessional!!!BeEthical!!!4ImportantdatesDecember3,NOCLASS,preparationforreportandpresentationDecember17,reportDUE,turninahardcopyinclass,andemailmeanelectroniccopy.ElectroniccopiestobeplacedonclasswebsiteDecember24,presentation.Startsat8:30,20minutesforeachgroup.Beforepresentation,IrandomlychooseONEpresenterfromthegroup.Feelfreetocometodiscussyourprojectwithme!5GradingGuidelineTheformatandcontentsofthereportTheformatandcontentsofthepresentationThepresenter’s精精神面面貌ThewaytohandlequestionsEnglishislesseranissueIacceptchallengestograding,butreservetherightstomakethefinaljudgment!6Obligation7LiabilityRecognitionAnobligationisaliabilityif:1.Itinvolvesaprobablefuturesacrificeofresourcesandtheamountofthesacrificecanbereasonablypreciselymeasured.2.Thereislittleornodiscretiontoavoidthetransfer3.ThetransactionoreventthatgivesrisetotheobligationhasalreadyoccurredAmutualpromise(orexecutorycontract)isnotaliabilitybecauseofitem3above.Thisis,signingacontactisnotatransaction.Anexampleofamutualpromiseisthecustomerpromisestopayandthefirmpromisestodelivergoodsatadate.Ifthispromiseisintheformofalegalcontract,itmaygivebothpartiesrightsbuttherightsarenotyetconsideredassetsandtheobligationsarenotyetconsideredliabilities,becausethetransactionspecifiedinthepromiseshasnotyetoccurred.8ClassificationsofAccountingLiabilitiesbyDegreeofCertaintyonrepaymentdatesandrepaymentamountsReadexamples1-9on450ofStickneyandWeil9AccountingItems:RecognizedversusDisclosedAccountingitemswhoseeconomicimpactonthefirmcanbemeasuredwithreasonableprecision,arerecognizedintheI/SorB/S,suchastheliabilitiestotheleftofthedividinglineinthepreviousslide.AccountingitemswhoseeconomicimpactonthefirmcanNOTbemeasuredwithreasonableprecision,aresometimesdisclosedinannualreports,suchascontingencyliabilitiestotherightofthedividingline.10Contingencies:PotentialLiabilitiesContingentliabilitiesarepotentialliabilitiesrelatedtopastevents.Themoreprobablethepotentialtobecomealegalobligation,thegreatertherationaleforrecognizingitasaliability.Probabilityofapotentialliabilityisverydifficulttomeasure.Ingeneral,anobligationshouldberecognizedasaliabilityifitisprobablethatthefirmwillhavemakefuturesacrificesofresources.Ofcourse,thewordprobableisalsodifficulttomeasure.Contingenciesarenormallydisclosedinfootnotes.But,FASBandIASCrequiretherecognitionofalossandacontingentliability,when,givenpastevents,Itisprobablethatanassethasbeenimpairedoraliabilityincurred,andTheamountofthelosscanbereasonablyestimated.11LiabilityValuationIngeneral,liabilitiesarepresentedonthebalancesheetatthepresentvalueofpaymentsneededtofulfilltheobligation.Presentvaluereferstodiscountingthenominalpaymentsbyaninterestrateappropriateforthefirm.Discountingisamathematicalcomputationwherebyfutureflowsarereducedtoreflecttheconceptthatmoneyhastimevalue.(SeeAppendixAatthebackofthetext.)Currentliabilitiesarenotgenerallydiscountedbecauseoftheshortperiodoftimeuntiltheyaretoberesolved.Theshortperiodoftimewouldcausetheamountofanydiscounttobesmallenoughtobeconsideredimmaterial.12LiabilityClassificationLiabilitiesareseparatedintocurrentandnoncurrentbasedonthelengthoftimethatwillelapsebeforetheobligationmustbefulfilled.Currentliabilitiesareobligationsthatmustbefulfilledwithinthecurrentoperatingcyclewhichisalmostalwaysoneyear.Noncurrentliabilitiesareobligationsthatneednotbefulfilledwithinthecurrentoperatingcycle.Obligationscallingforperiodicpaymentssuchasamortgagemaybenoncurrentbuthaveacurrentportion;thatis,thepaymentsduewithintheoperatingcyclearecurrentbuttheremainingpaymentsarenoncurrent.13CurrentLiabilitiesa.Accountspayableb.Short-termnotesandinterestpayablec.Wages,salariesandotherpayrollitemsd.Incometaxespayablee.Deferredperformanceliabilities:advancesfromcustomersf.Deferredperformanceliabilities:productwarranties14AccountsPayabletoCreditorsBusinessfirmsoftenbuyandselltoeachotheroncredit.Amountsowedtootherbusinessesforservicesorgoodsarecalledtradeaccountspayable.Typicallytheseareshort-termliabilities.Typically,apaymentgraceperiodisallowedbeforetheseobligationsmustbefulfilled(orpaid).Agraceperiodmaybe30daysormore.Becausesuchagraceperiodrepresentsinterest-freeborrowing,theprudentfirmtakesadvantagebypayingexactlyontimebutnotbefore.Rarely,afirmismoreaggressiveandalwayspayslate,butalatechargemaybeassessedandsuchafirmwilldevelopareputationwhichmayaffectthetermstheycannegotiate.15Short-TermNotesandInterestPayableAnotepayableisaformofshorttermborrowing.Thenoteaccruesinterestexpenseandinterestpayableatastatedrateovertime.Thetotalamountofthenoteandtheinterestaremostlydueasonepaymentuponmaturityofthenote.16Wages,SalariesandOtherPayrollItemsEmployerspayworkersdirectlyincashandintheformofbenefits--thisgivesrisetopayrollexpenseForexample,vacationtimemaybeearnedovertime.Thefirmpaystaxesonthisbenefitasitisearnedandaliabilitytotheworkerisrecorded.Whenvacationistaken,theliabilityisreduced.Employersalsopaysometaxesthatrelatetotheworkers--thesearetaxexpenses.17IncomeTaxesPayableU.S.andmostcountriestaxbusinessincome.Corporationsaretaxeddirectly.Partnershipsandsoleproprietorshipsarenottaxedbuttheincomeisassignedtothepartnersorproprietorwhomustthenpaythetax.Incometaxesareassumedtoaccrue;thatis,theincometaxliabilityincreasesasthefirmearnsincome.TaxrulesalsocallforperiodicpaymentstotheIRS.Sothatbusinessincometaxesareestimatedandpaidthroughouttheyear.Theannualfilingdeadline(March15)isareportingdeadlineandnotapaymentdeadline;paymentinmanycasesisrequiredearlier.Inaddition,GAAPallowsfordifferencesbetweenincometaxexpense(anaccrualconcept)andincometaxliability(theamountowedtoIRS).Thisiscoveredinalaterchapterunderdeferredtaxaccounting.18DeferredPerformanceLiabilities:AdvancesfromCustomersAmutualpromise(thecustomerpromisestopayandthefirmpromisestodeliver)isnotrecorded.However,ifthecustomerpaysinadvance,thenthereisanobligationthatarisesandthefirmrecordsthisasanincreaseinanasset(cash)andanincreaseinaliability(advancesfromcustomers,unearnedrevenues).Theobligationisforthefirmtoeitherfulfillitspromisetodelivergoodsorserviceswithinthespecificationsofthecontractorreturnthecash.Anexampleisamagazinesubscriptionwhichistypicallypaidinadvance.Thesubscriptionisanobligationtoproduceanddeliverthemagazine.Whenamagazineisdelivered,theobligationcanbereduced(debited)andrevenuecanberecognized(credited)becauseitisthenearned.19DeferredPerformanceLiabilities:ProductWarrantiesAwarrantyisapromisetorepairorreplacethegoodbutislimitedbytime.Whengoodswithawarrantyaresold:revenue,thewarrantyexpense,andthewarrantyliabilityarerecognized.Theamountoftheliabilitymustbeestimated.Whenaclaimismade,thewarrantyliabilityisreduced(debited)andwhatisgiventofulfilltheclaim(cashornewgoodsorpartsandlabor)arecredited.Anyunusedportionofthewarrantyexpiresattheendofthewarrantyperiodreducingtheliabilityandcreatingagain.20Long-TermLiabilitiesa.Bondsb.Mortgages21ProceduresforRecordingLong-TermLiabilitiesWhereasshorttermliabilitiesmaybepaidatmaturity,long-termliabilitiesaremorecommonlypaidininstallments.Also,thegeneralruleisthatlong-termliabilitiesarerecordedatthepresentvalueofthepayments.Theaccountantdistinguishesbetweenpaymentoftheliability(theprinciple)andpaymentofinterest(anexpenseoffinancing).Commonly,theprinciple,theperiodicpaymentsandtheinterestratesareexplicitlystatedinthedebtcontract.Ifnot,thendiscountedcashflowmethodsmaybeusedtoseparateouttheinterestpayment.Therateofinterestthatequatedthepresentvalueofagivensetofperiodicpaymentswiththeprincipleiscalledtheinternalrateofreturnordiscountrate).Ifyouareconfusedwiththisslide,pleaseskipandreturnafterFinishingthischapter.22Long-termLiabilities:InterestImputationSomecontractsdonotexplicitlystateinterestpayments,insteadthepurchasepricemayincludecarryingcharges.Thereisnoeconomicconceptofaninterest-freeloan.Theinterestmaynotbeexpressed,butitisthere.TheIRSagreesandwillrequirethetaxpayertocalculateinterestpaymentsevenifthecontractdoesnotspecificallystatearateofinterest(calledimplicitorimputedinterest).GAAPagreesandrequiresthatlongtermliabilitiesberecordedattheirpresentvalueandthatrepaymentsbeseparatedintointerestexpenseandreductionoftheliability.Whereinterestratesarenotstated,theycanbecomputedusingpresentvaluemethodsandusingtheknowpaymentswithAnestimateofmarketvalue(whichbecomesthePV),orAnestimateoftheinterestrateforsimilardebt.Ifyouareconfusedwiththisslide,pleaseskipandreturnafterFinishingthischapter.23BondsBondsaredebtinstrumentssoldtotheinvestingpublic.Somebondscarrynocollateral（担担保保））andarecalleddebenturebonds.Bondsbackedbycollateralarecalledcollateraltrustbonds.Bondsthatcanbeconvertedtocommonsharesoftheissuingcompanyarecalledconvertiblebonds.Bondsarerecordedasalong-termliability.24Howtodefineabond?1.Apieceofpaper2.Facevalue(orparvalue):forexample$1,0003.Anominal（（名名义义上上的的））interestrate:forexample10%(therateisannualrateifnotstatedotherwise.Semiannualrateishalfofitat5%).4.Duration:numberofyearsbeforetheprincipleisdue,forexample,5years5.Frequencyofnominalinterestpaymentinayear:annuallypaysonceayear;semiannuallypaystwiceayear(soafive-yearbondwouldhavetensemiannualperiods)25Howtodefineabond?Thedefinitionofabondisthepatternofitscashpaymentstothebondholders,nothingelse(STOP:Thisisthefirstimportantconceptinbondaccounting,youmustunderstandbeforeyougoon)Thebondinthepreviousslideisdefinedas:Thisbondisdefinedbyten$50paymentsofnominalinterestseveryhalfayear(semiannually);andapaymentofparvalue$1,000attheendofthefifthyear.$50$50$50$50$50$50$50$50$50$50$1,00026Howmuchwillthisbondsellfor?Likeanyinvestmentvehicles,thepriceofabondisthenetpresentvalueofitsfuturecashpayments(NPV)Thebondpriceandtheparvalueofthebondaretotallytwodifferentthings,theydonothavetobethesame.Thepreviousbondcanbesoldmorethanorlessthantheparvalue$1,000.(STOP:Thisisthesecondimportantconceptinbondaccounting,youmustunderstandbeforeyougoon)IassumeyouhavelearntNPVcalculations,andTheuseofpresentvaluetables.27Howmuchwillthisbondsellfor?TherateofreturnthatweusetodiscountthecashflowstogetNPVofthebondiscalleddiscountrate（折现率率）.Discountrateisdecided,atthetimeofthebondsale,bytheriskassociatedwiththebond.Ifitismore(less)likelyforthebondsellertodefaultinthefuture,thediscountratewillhigher(lower).Microsoft’sbonddiscountratemaybe4.8%,whileasmallfoodchain’’sbonddiscountratehastobe10.7%.Discountratehasnothingtodowiththebond’snominalinterestrate;nominalinterestrateonlydeterminesthecashpayments($50eachinthiscase).(STOP:Thisisthethirdimportantconceptinbondaccounting,youmustunderstandbeforeyougoon)28Howmuchwillthisbondsellfor?-soldatparLetusassumethepreviousbond’sdiscountrateis10%(this10%hasnothingtodowiththe10%nominalinterestrate).Thenthebondpriceis=50/(1+5%)+50/(1+5%)2+50/(1+5%)3+50/(1+5%)4+……50/(1+5%)10+1000/(1+5%)10=$1,000Whyweuse5%discountratenotthe10%?Becausethe$50nominalinterestpaymentisforhalfayear.Weuse10periodsbecausefiveyearsmakeuptenhalf-a-years.Whenbondpriceisequaltobondfacevalue,wesayitissoldatpar.Youshouldnotrelyonanycalculatorortablestocomputethebondpriceintheaboveequation.Whennominalinterestrate(5%)isthesameasdiscountrate(5%),thebondissoldatparvalue.(STOP:Thisisthefourthimportantconceptinbondaccounting,youmustunderstandbeforeyougoon)29Howmuchwillthisbondsellfor?-soldatpremiumLetusassumethepreviousbond’sdiscountrateis8%(thatis,itislessriskierthaninthepreviousslidetolendtothecompanysoalowerdiscountrateisused).Thenthebondpriceis=50/(1+4%)+50/(1+4%)2+50/(1+4%)3+50/(1+4%)4+……50/(1+4%)10+1000/(1+4%)10=$50*8.11081+$1,000*0.675562=$1,0811StickneyandWeilpage855,4%atn=102StickneyandWeilpage853,4%atn=10Premium=$1,081––1,000=$81Whenbondpriceismorethanbondparvalue,wesayitissoldatpremium.30Howmuchwillthisbondsellfor?-soldatdiscountLetusassumethepreviousbond’sdiscountrateis12%(thatis,itismoreriskierthanintheprevioustwoslidetolendtothecompanysoahigherdiscountrateisused).Thenthebondpriceis=50/(1+6%)+50/(1+6%)2+50/(1+6%)3+50/(1+6%)4+……50/(1+6%)10+1000/(1+6%)10=$50*7.36009**+$1,000*0.55839***=$926**StickneyandWeilpage855,6%atn=10***StickneyandWeilpage853,6%atn=10Discount=$1,000–926=$74Whenbondpriceislessthanbondparvalue,wesayitissoldatdiscount.31Howmuchwillthisbondsellfor?-summarySoldatpremiumSoldatparSoldatdiscountNominalInterestrate10%10%10%Discountrate8%10%12%BondPrice(cashreceivedbythebondseller)$1,081$1,000$826Understandpricedifference-technicalInthebondpriceequation,comparetosoldatpar,thenumeratoristhesame,butdenominatorissmaller,thentheresultgetslargerInthebondpriceequation,comparetosoldatpar,thenumeratoristhesame,butdenominatorislarger,thentheresultgetssmallerUnderstandpricedifference-intuitiveWhenthemarketdemands8%(discountrate,rateofreturn)fromthebondseller,thebondsellerpayscashat10%everyyear.Sothisbondisworthmorethantheparvalue.Whenthemarketdemands10%(discountrate,rateofreturn)fromthebondseller,thebondsellerpayscashat10%everyyear.Sothisbondisworthitsparvalue.Whenthemarketdemands12%(discountrate,rateofreturn)fromthebondseller,thebondsellerpayscashat10%everyyear.Sothisbondisworthlessthantheparvalue.32Bond’’srealinterestrateandinterestexpenseThebond’’srealinterestrateisNOTthenominalinterestrate;itisthediscountrate.Nominalinterestrateisonlyusedtodeterminethepatternoffuturecashpayments.Interestexpenseistherealinterestratetimesthebalanceofthebondpayable(principle)accountatthebeginningoftheperiod..(STOP:Thisisthefifthimportantconceptinbondaccounting,youmustunderstandbeforeyougoon)Whenthebondissoldatpar,interestexpenseisthethesameascashpayment(the$50).Whenthebondissoldatpremium,interestexpenseislessthancashpayment.Thedifferenceisareturn(decrease)ofprinciple(bondpayable).Whenthebondissoldatdiscount,interestexpenseismorethancashpayment,thedifferenceincreasestheprinciple(bondpayable)tothefacevalue.Inanycase,attheendofthefifthyear,afterthelastpaymentof$50,bondpayableaccountshouldhaveabalanceof$1,000(parvalue),thentheborrowerpaysthecreditor$1,000cash.33Bondaccounting––anexample$100,000parvalue12%nominalinterestrateFiveyeardurationCashpaymentsmadesemiannuallyDiscountrate14%Bondpricethen=$92,976.Thisistheamountofcashthebondsellerreceivesfromthebondsales.Hethen:Dr.Cash92,976Cr.BondPayable92,976Note:atthistime,thebondsellerowes$92,976(principleofthebond),notthe$100,000parvalue.(STOP:Thisisthesixthimportantconceptinbondaccounting,youmustunderstandbeforeyougoon)34Bondaccounting––anexampleOnJune30ofyear1,thebondsellerpayscash$100,000*0.06=$6,000.ThisisNOTinterestexpense.Interestexpenseforthefirsthalfofyear1=discountrate7%*bondpayable$92,976=$6,508.Dr.Interestexpense6,508Cr.Cash6,000Cr.Bondpayable508Nowbondpayableaccountbalance=$92,976+508=$93,48435Bondaccounting––anexampleOnDecember31ofyear1,thebondsellerpayscash$100,000*0.06=$6,000.ThisisNOTinterestexpense.Interestexpenseforthesecondhalfofyear1=discountrate7%*bondpayable$93,484=$6,544.Dr.Interestexpense6,544Cr.Cash6,000Cr.Bondpayable544Nowbondpayableaccountbalance=$92,976+508+544=$94,028Soonsoforth,onDecember31ofyear5,afterpaycashof$6,000forthe10thtime,bondpayableaccounthasabalanceof$100,000.Thenpaycashof$100,000toreturntheparvalue.Dr.BondPayable100,000Cr.Cash100,000Thebondisgonenow!!!36Thisexhibit9.4(p.504)showsthecalculationofinterestexpenseandincreaseinbondpayableoverthefiveyeardurationperiod.Itiscalledanamortizationschedulebecauseitlookslikethatthetotaldiscount,$7,024,hasbeenamortizedoverthesetenperiods)37Bondaccounting––anexampleAccountingforbondsoldatparisstraightforward.EverytimebondsellerpayscashDr.InterestexpenseCr.CashAccountingforbondsoldatpremiumissimilartoaccountingforbondsoldatdiscount(exhibit9.5,p.506).EverytimethebondsellerpayscashDr.InterestexpenseDr.BondpayableCr.CashRemember,thistimebondpayable’sbeginningbalanceismorethantheparvalue$100,000.Sothedebitentrytobondpayableaccountreducesitto$100,000attheendofthefifthyear.38BondretirementbeforematurityThebalanceofbondpayableaccountisthebookvalueofthebond.Afterthebondissold,itsbookvaluewillseldomequalthemarketvalueofthebond,inthesamewhatthatthebookvalueofabuildingwillseldomequalthemarketvalueofthebuilding.Whymarketvalueofbondchanges?Rememberthecashflowsinthebondpriceequationdonotchange,thentheonlythingthatchangesbondmarketvalueisthediscountrate.Thediscountratechangeswith1)thecompany’’sabilitytopayoffdebts,2)thecountry’’srisk-freerate,and3)inflationrate.39BondretirementbeforematurityAfterthebondissold,sometimes,thesellerbuysthebondbackfromthebondholderatmarketvalue.Ifmarketvalueissmallerthanthebookvalue,thesellerrealizesgains;iflarger,thesellerrealizeslosses.(rememberthisisliabilitiesnotassets)Toavoidcompaniesusingbondretirementtomanagetheirearnings,GAAPrequiresthegains/lossesfrombondretirementtobeshowninI/Sasextraordinaryitems,whichisincludedinnetincome,butnotexcludedfromincomefromcontinuingoperation.40MortgagesandNotesMortgagesfollowthegeneralruleforlong-termliabilities.Amortgagecontracttypicallyallowssomerecoursetothelenderintheeventofdefault;thismightbealienonpropertyorcollateral.Whentheloanismade,thefirmreceivescashandaliabilityiscreated,mortgagepayable.Theliabilityisrecordedatthepresentvalueoftheperiodicpayments.Asperiodicpaymentsaremade:cashisreturned,theliabilityisreducedandinterestexpenseisrecognizedusingdiscountedcashflowmethods.TheconventionpresentlyintheU.S.formortgagescallsforequalpaymentsoverthelifeoftheloan.Sincetheliabilitydecreasesoverthelifeoftheloan,theinterestexpensealsodecreasesandagreateramountofcashgoestoreducingtheprinciple.41MortgagesConsidera5yearmortgagefor$125,000toberepaidin10installmentsof$17,000persemesterwith12percentinterestcompoundedsemiannually.Therepaymentscheduleisgivenbelow.Noticethateventhoughthecashpaymentsareequal;thebalanceowedandtheinterestexpensedecreaseovertime.Thelastpaymentisalittlelessthan$17,000duetoroundingeffects.=(2)*0.06=(4)-(3)=(2)-(5)42UnifyingPrinciplesof

AccountingforLong-TermLiabilitiesLong-termliabilitiesobligatetheborrowingfirmtopayspecifiedamountsatdefinitetimesmorethanoneyearinthefuture.Alllong-termliabilitiesappearonthebalancesheetatthepresentvalueoftheremainingfuturepayments.Process:1.Recordtheliabilityatthecashorcash-equivalentvaluereceived.Thisamountisthepresentvalueoftheliability.2.Atanysubsequenttimewhenthefirmmakesacashpaymentoranadjustingentryforinterest,itcomputesinterestasthebookvalueoftheliabilitymultipliesbytheinterestrate(notnecessarilythefacerateofinterest).43AnalysisofRiskFactorsthataffectriskofafirmEconomy-widefactorssuchasinflationIndustry-widefactorssuchascompetitionFirm-s