TAILIEUCHUNG - Lecture Financial statement analysis (11/e): Chapter 3.1 - K. R. Subramanyam

This chapter describes accounting analysis of financing activities - both creditor and equity financing. Our analysis of creditor financing considers both operating liabilities and financing liabilities. Analysis of operating liabilities includes extensive study of postretirement benefits. Analysis of financing liabilities focuses on topics such as leasing and off-balance-sheet financing, along with conventional forms of debt financing. | Financial Statement Analysis . Subramanyam Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Analyzing Financing Activities 3 CHAPTER Leases Leasing – Key Points Capital versus Operating Buildings compared to copiers Bank leverage ratio Leases Leasing Facts Lease – contractual agreement between a lessor (owner) and a lessee (user or renter) that gives the lessee the right to use an asset owned by the lessor for the lease term. MLP – minimum lease payments (MLP) of the lessee to the lessor according to the lease contract Leases (1) Capital Lease Accounting For leases that transfer substantially all benefits and risks of ownership—accounted for as an asset acquisition and a liability incurrence by the lessee, and as a sale and financing transaction by the lessor A lessee classifies and accounts for a lease as a capital lease if, at its inception, the lease meets any of four criteria: (i) lease transfers ownership of property to lessee by end of the lease term (ii) lease contains an option to purchase the property at a bargain price (iii) lease term is 75% or more of estimated economic life of the property (iv) present value of rentals and other minimum lease payments at beginning of lease term is 90% or more of the fair value of leased property (2) Operating Lease Accounting For leases other than capital leases—the lessee (lessor) accounts for the minimum lease payment as a rental expense (income) Lease Accounting and Reporting Leasing – Key Points Capital leases and Operating leases both have an interest and a principle portion of the payment. Leasing – Illustration Leased assets have an expected life of 5 years. Depreciation is straight line. Annual lease payment is $2,505. Interest rate is 8%. Leasing – Illustration The total operating lease payment is considered to be an expense. Therefore if we consider this lease to be an operating lease, then the .

• Tài chính doanh nghiệp
• Financial statement analysis
• Financial statement
• Lecture Financial statement analysis
• Analyzing financing activities
• Debt financing
• Interpret leases
• International financial statement
• International financial statement analysis
• Financial reporting
• Financial analysis techniques
• Financial reporting mechanics
• Financial reporting quality
• Financial decisions
• Business analysis
• Financial statement analysis techniques
• Efficient market
• Supplementary information
• Income statements
• Balance sheets
• Cash flow statements
• Inventory valuation methods
• Long lived assets
• Noncurrent liabilities
• Credit quality
• Income taxes
• Postemployment benefit plans
• Intercorporate investments
• Multinational operations
• Evaluating quality
• Cash flow analysis
• Statement of cash flows
• Accrual accounting
• Prospective analysis
• Projected income statement
• Projected balance sheet
• Accounting information
• Analysis environment
• Credit analysis
• Current ratio
• Operating activity analysis
• Invested capital
• Profitability analysis
• Return on invested capital
• Equity analysis
• Earnings persistence
• Recasting rarnings