TAILIEUCHUNG - Lecture Accounting (6th edition): Chapter 13 - Kimmel, Weygandt, Kieso

Chapter 13 - Financial analysis: The big picture. After studying this chapter you will be able to understand: Apply the concepts of sustainable income and quality of earnings, apply horizontal analysis and vertical analysis, analyze a company’s performance using ratio analysis. | Financial Analysis: The Big Picture Kimmel ● Weygandt ● Kieso Accounting, Sixth Edition 13 CHAPTER OUTLINE Apply the concepts of sustainable income and quality of earnings. 1 Apply horizontal analysis and vertical analysis. 2 LEARNING OBJECTIVES Analyze a company’s performance using ratio analysis. 3 The most likely level of income to be obtained by a company in the future. Unusual Items Separately identified on the income statement. Discontinued operations. Other comprehensive income. These “irregular” items are reported net of income tax. LO 1 LEARNING OBJECTIVE Apply the concepts of sustainable income and quality of earnings. 1 SUSTAINABLE INCOME SUSTAINABLE INCOME ILLUSTRATION 13-1 Statement of comprehensive income LO 1 Discontinued Operations Disposal of a significant component of a business. Income statement should report a gain (or loss) from discontinued operations, net of tax. SUSTAINABLE INCOME LO 1 Illustration: Assume that during 2017 Acro Energy Inc. has income before income taxes of $800,000. During 2017, Acro discontinued and sold its unprofitable chemical division. The loss in 2017 from chemical operations (net of $60,000 taxes) was $140,000. The loss on disposal of the chemical division (net of $30,000 taxes) was $70,000. Assuming a 30% tax rate on income. Prepare Acro’s statement of comprehensive income for the year ended December 31, 2017. Discontinued Operations LO 1 Discontinued Operations ILLUSTRATION 13-2 Statement presentation of discontinued operations LO 1 INVESTOR INSIGHT What Does “Non-Recurring” Really Mean Many companies incur restructuring charges as they attempt to reduce costs. They often label these items in the income statement as “non-recurring” charges, to suggest that they are isolated events, unlikely to occur in future periods. The question for analysts is, are these costs really one-time, “nonrecurring events” or do they reflect problems that the company will be facing for many periods in the future? If they are one-time .

• Kế toán - Kiểm toán
• Lecture Accounting
• Financial statements
• Business organization
• Accounting information
• Sustainable income
• Financial analysis
• Financial accounting
• Lecture Financial accounting
• Management accounting
• Accounting standards
• Accounting equation
• Intermediate accounting
• Lecture Intermediate accounting
• Accounting process
• Accounting processing cycle
• Managerial accounting
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Merchandising operations
• Lecture Accounting 1
• Accounting for main transactions
• Accounting for purchases
• Accounting for sales
• Accounting for expenses
• Principle of accounting
• Lecture Principle of accounting
• The basic accounting equation
• Transaction analysis in accounting equation
• Calculate the accounting equation
• Lecture Advanced financial accounting
• Bài giảng Kế toán tài chính nâng cao
• Advanced financial accounting
• Accounting policies
• Accounting estimate
• Retrospective application
• Changes in accounting estimates
• Retrospective restatements
• Accounting assumptions
• Lecture Management accounting
• Bài giảng Kế toán quản trị
• Nature of management accounting
• Component of accounting system
• Financial system
• Lecture Accounting and financial system
• Ledger accounting
• Trial balance
• Completing the accounting cycle
• Accounting cycle
• Accounting worksheet
• Classified balance sheet
• Accounting changes
• Error corrections
• Accounting choices
• Accounting for business
• Lecture Accounting for business
• Accounting entity
• Classification of assets
• Accounting equation transactions