TAILIEUCHUNG - Lecture International financial statement analysis: Chapter 15 - CFA Institute

This chapter describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for (1) investments in financial assets, (2) investments in associates, (3) joint ventures, (4) business combinations, and (5) special purpose and variable interest entities; distinguish between IFRS and . GAAP in the classification, measurement, and disclosure of investments in financial assets, investments in associates, joint ventures, business combinations, and special purpose and variable interest entities; | Chapter 15 INTERCORPORATE INVESTMENTS Presenter’s name Presenter’s title dd Month yyyy LEARNING OUTCOMES Describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for (1) investments in financial assets, (2) investments in associates, (3) joint ventures, (4) business combinations, and (5) special purpose and variable interest entities. Distinguish between IFRS and . GAAP in the classification, measurement, and disclosure of investments in financial assets, investments in associates, joint ventures, business combinations, and special purpose and variable interest entities. Analyze how different methods used to account for intercorporate investments affect financial statements and ratios. 1 intercorporate investments Intercorporate investments include investments in the debt and equity securities of other companies. Reasons for investing in other companies: To achieve additional profitability. To enter new markets through companies established in those areas. To diversify. To obtain competitive advantages. The classification of intercorporate investments is based on the degree of influence or control that the investor is able to exercise over the investee. Copyright © 2013 CFA Institute 2 LOS. Describe the classification, measurement, and disclosure under International Financial Reporting Standards (IFRS) for (1) investments in financial assets, (2) investments in associates, (3) joint ventures, (4) business combinations, and (5) special purpose and variable interest entities. Examples of intercorporate investments include IBM’s acquisition of a sizable portion of Intel’s stock to ensure a supply of components. Coca-Cola’s acquisition of a bottling company to gain cost advantage. 2 Classifying intercorporate investments Investments are classified into four categories based on the degree of influence or control: Investments in financial assets (ownership percentage < 20%): Investments in which the investor has

• Tài chính doanh nghiệp
• International financial statement
• Financial statement
• International financial statement analysis
• Financial statement analysis
• Financial reporting
• Intercorporate investments
• Financial reporting mechanics
• Financial analysis techniques
• Financial reporting quality
• Financial decisions
• Supplementary information
• Income statements
• Balance sheets
• Cash flow statements
• Inventory valuation methods
• Long lived assets
• Noncurrent liabilities
• Credit quality
• Income taxes
• Postemployment benefit plans
• Multinational operations
• Evaluating quality
• International trade transactions
• Financial management
• Fundamentals of financial management
• International financial management
• Financial accounting
• International financial reporting standards
• Financial reporting standards
• Stockholders’ equity
• Financial statement auditing
• Audit planning
• Internal control
• Auditing business processes
• Financial statement audit
• Financial environments
• Accounting standards
• Stock exchange
• Joint stock companies
• Vietnam’s accounting standards
• Some fundamentals
• International differences
• Financial statements
• Financial reporting issues