NOT IN USE - Custom ACC603: Financial Statement Analysis (University of Alabama-Huntsville)
by Easton, Hopkins
ISBN: 978-1-61853-581-8 | Copyright 2023
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| Financial Statement Analysis & Valuation, 6e (pg. 1.1-1) | |
| Module 1 Framework for Analysis and Valuation (pg. 1.1-1) | |
| Step 1 Business Environment and Accounting (pg. 1.1-5) | |
| Review 1-1 (pg. 1.1-6) | |
| Financial Statements: Demand and Supply (pg. 1.1-6) | |
| Demand for Information (pg. 1.1-6) | |
| Supply of Information (pg. 1.1-9) | |
| International Accounting Standards (pg. 1.1-10) | |
| Review 1-2 (pg. 1.1-11) | |
| Review of Financial Statements (pg. 1.1-12) | |
| Balance Sheet (pg. 1.1-12) | |
| Income Statement (pg. 1.1-15) | |
| Statement of Stockholders’ Equity (pg. 1.1-17) | |
| Statement of Cash Flows (pg. 1.1-18) | |
| Information Beyond Financial Statements (pg. 1.1-19) | |
| Review 1-3 (pg. 1.1-19) | |
| Analyzing the Business Environment (pg. 1.1-20) | |
| Analyzing the Value-Chain (pg. 1.1-20) | |
| Five-Forces Analysis of Business Environment (pg. 1.1-20) | |
| SWOT Analysis of Business Environment (pg. 1.1-21) | |
| Analyzing Competitive Advantage (pg. 1.1-22) | |
| Review 1-4 (pg. 1.1-23) | |
| Step 2 Adjusting and Analyzing Financial Data (pg. 1.1-24) | |
| Managerial Choices in Financial Reporting (pg. 1.1-24) | |
| Analysis of Return on Assets (pg. 1.1-25) | |
| Components of Return on Assets (pg. 1.1-25) | |
| Analysis of Return on Equity (pg. 1.1-26) | |
| Review 1-5 (pg. 1.1-27) | |
| Step 3 Forecasting Financial Numbers (pg. 1.1-27) | |
| Review 1-6 (pg. 1.1-28) | |
| Step 4 Business Valuation (pg. 1.1-29) | |
| Valuation Models (pg. 1.1-29) | |
| Are Financial Data Relevant? (pg. 1.1-29) | |
| Financial Statement Analysis in an Efficient Capital Market (pg. 1.1-30) | |
| Analyzing Global Reports (pg. 1.1-31) | |
| Review 1-7 (pg. 1.1-32) | |
| Appendix 1A: Financial Statement Data and Analytics (pg. 1.1-32) | |
| SEC Filings (pg. 1.1-32) | |
| Data Analytics (pg. 1.1-35) | |
| Guidance Answer (pg. 1.1-36) | |
| Questions (pg. 1.1-36) | |
| Mini Exercises (pg. 1.1-37) | |
| Exercises (pg. 1.1-39) | |
| Problems (pg. 1.1-41) | |
| IFRS Applications (pg. 1.1-47) | |
| Analysis Decision Points (pg. 1.1-48) | |
| Ongoing Analysis Project (pg. 1.1-48) | |
| Solutions to Reviews (pg. 1.1-49) | |
| Module 2 Review of Business Activities and Financial Statements (pg. 1.2-1) | |
| Interpreting A Balance Sheet (pg. 1.2-3) | |
| Assets (pg. 1.2-3) | |
| Liabilities and Equity (pg. 1.2-5) | |
| Review 2-1 (pg. 1.2-12) | |
| Interpreting An Income Statement (pg. 1.2-12) | |
| Recognizing Revenues and Expenses (pg. 1.2-13) | |
| Reporting of Transitory Items (pg. 1.2-14) | |
| Analyzing the Income Statement (pg. 1.2-16) | |
| Review 2-2 (pg. 1.2-16) | |
| Interpreting A Statement of Stockholders’ Equity (pg. 1.2-17) | |
| Review 2-3 (pg. 1.2-18) | |
| Interpreting A Statement of Cash Flows (pg. 1.2-18) | |
| Statement Format and Data Sources (pg. 1.2-18) | |
| Review 2-4 (pg. 1.2-19) | |
| Articulation of Financial Statements (pg. 1.2-19) | |
| Retained Earnings Reconciliation (pg. 1.2-20) | |
| Financial Statement Linkages (pg. 1.2-20) | |
| Review 2-5 (pg. 1.2-21) | |
| Analyzing Transactions and Adjustments (pg. 1.2-22) | |
| Four-Step Accounting Cycle (pg. 1.2-22) | |
| Financial Statement Effects Template (pg. 1.2-22) | |
| Accounting Cycle Step 1-Analyze Transactions and Prepare Entries (pg. 1.2-24) | |
| Applying the Financial Statement Effects Template (pg. 1.2-24) | |
| Applying the Journal Entry and T-Account (pg. 1.2-24) | |
| Review 2-6 (pg. 1.2-26) | |
| Accounting Cycle Step 2-Prepare Accounting Adjustments (pg. 1.2-27) | |
| Prepaid (Deferred) Expenses (pg. 1.2-28) | |
| Unearned (Deferred) Revenues (pg. 1.2-28) | |
| Accrued Expenses (pg. 1.2-29) | |
| Accrued Revenues (pg. 1.2-29) | |
| Accounting Adjustments for Apple (pg. 1.2-30) | |
| Review 2-7 (pg. 1.2-31) | |
| Accounting Cycle Step 3-Prepare Financial Statements (pg. 1.2-31) | |
| Review 2-8 (pg. 1.2-31) | |
| Accounting Cycle Step 4-Close the Books (pg. 1.2-32) | |
| Review 2-9 (pg. 1.2-32) | |
| Additional Information Sources (pg. 1.2-32) | |
| Form 10-K (pg. 1.2-32) | |
| Form 20-F and Form 40-F (pg. 1.2-34) | |
| Form 8-K (pg. 1.2-35) | |
| Analyst Reports (pg. 1.2-35) | |
| Credit Services (pg. 1.2-36) | |
| Data Services (pg. 1.2-36) | |
| Review 2-10 (pg. 1.2-36) | |
| Analyzing Global Reports (pg. 1.2-36) | |
| Guidance Answers (pg. 1.2-37) | |
| Questions (pg. 1.2-37) | |
| Mini Exercises (pg. 1.2-38) | |
| Exercises (pg. 1.2-40) | |
| Problems (pg. 1.2-46) | |
| IFRS Application (pg. 1.2-51) | |
| Analysis Discussion Points (pg. 1.2-52) | |
| Ongoing Analysis Project (pg. 1.2-53) | |
| Solutions to Reviews (pg. 1.2-53) | |
| Module 3 Profitability Analysis and Interpretation (pg. 1.3-1) | |
| Return on Equity (ROE) (pg. 1.3-3) | |
| Review 3-1 (pg. 1.3-4) | |
| ROE Disaggregation: DuPont Analysis (pg. 1.3-4) | |
| Return on Assets (pg. 1.3-4) | |
| Financial Leverage (FL) (pg. 1.3-5) | |
| Review 3-2 (pg. 1.3-6) | |
| Return on Assets and Its Disaggregation (pg. 1.3-6) | |
| Analysis of Profitability and Productivity (pg. 1.3-7) | |
| Analysis of Profitability (pg. 1.3-8) | |
| Analysis of Productivity (pg. 1.3-9) | |
| Analysis of Financial Leverage (pg. 1.3-12) | |
| Review 3-3 (pg. 1.3-14) | |
| Balance Sheet Analysis with an Operating Focus (pg. 1.3-15) | |
| Return on Net Operating Assets (RNOA) (pg. 1.3-15) | |
| Net Operating Assets (NOA) (pg. 1.3-16) | |
| Net Nonoperating Obligations (NNO) (pg. 1.3-17) | |
| Income Statement Analysis with an Operating Focus (pg. 1.3-19) | |
| Review 3-4 (pg. 1.3-19) | |
| Operating Line Items on the Income Statement (pg. 1.3-20) | |
| Nonoperating Line Items on the Income Statement (pg. 1.3-20) | |
| Net Nonoperating Expense (NNE) (pg. 1.3-23) | |
| Review 3-5 (pg. 1.3-23) | |
| Return on Net Operating Assets (RNOA) (pg. 1.3-24) | |
| RNOA Disaggregation into Margin and Turnover (pg. 1.3-26) | |
| Review 3-6 (pg. 1.3-26) | |
| Net Operating Profit Margin (pg. 1.3-27) | |
| Net Operating Asset Turnover (pg. 1.3-27) | |
| Trade-Off between Margin and Turnover (pg. 1.3-28) | |
| Review 3-7 (pg. 1.3-30) | |
| Analyzing Global Reports (pg. 1.3-30) | |
| Appendix 3A: Operating versus Nonoperating Classification (pg. 1.3-31) | |
| Appendix 3B: Nonoperating Return Component of ROE (pg. 1.3-32) | |
| Nonoperating Return (pg. 1.3-32) | |
| Nonoperating Return- With Substantial Net Nonoperating Assets: Amazon (pg. 1.3-34) | |
| Nonoperating Return- With Noncontrolling Interest: AT&T (pg. 1.3-35) | |
| Review 3-8 (pg. 1.3-36) | |
| Appendix 3C: Vertical and Horizontal Analysis (pg. 1.3-36) | |
| Limitations of Ratio Analysis (pg. 1.3-37) | |
| Review 3-9 (pg. 1.3-39) | |
| Guidance Answer (pg. 1.3-40) | |
| Questions (pg. 1.3-40) | |
| Mini Exercises (pg. 1.3-40) | |
| Exercises (pg. 1.3-44) | |
| Problems (pg. 1.3-49) | |
| IFRS Application (pg. 1.3-56) | |
| Analysis Discussion Points (pg. 1.3-56) | |
| Ongoing Analysis Project (pg. 1.3-57) | |
| Solutions to Reviews (pg. 1.3-58) | |
| Module 5 Revenue Recognition and Operating Income (pg. 1.5-1) | |
| Analyzing Revenue (pg. 1.5-3) | |
| Revenue Recognition Rules (pg. 1.5-4) | |
| Complications of Revenue Recognition (pg. 1.5-6) | |
| Performance Obligations Satisfied Over Time (pg. 1.5-7) | |
| Review 5-1 (pg. 1.5-11) | |
| Analyzing Sales Allowances (pg. 1.5-12) | |
| Accounting for Sales Allowances (pg. 1.5-12) | |
| Reporting Sales Allowances (pg. 1.5-13) | |
| Analysis of Sales Allowances (pg. 1.5-13) | |
| Review 5-2 (pg. 1.5-15) | |
| Analyzing Unearned (Deferred) Revenue (pg. 1.5-16) | |
| Review 5-3 (pg. 1.5-17) | |
| Foreign Currency Effects on Revenue, Expenses, and Cash Flow (pg. 1.5-18) | |
| Foreign Currency and Cash Flows (pg. 1.5-18) | |
| Foreign Currency and Income (pg. 1.5-19) | |
| Foreign Currency and Future Results (pg. 1.5-19) | |
| Review 5-4 (pg. 1.5-20) | |
| Analyzing Accounts Receivable (pg. 1.5-21) | |
| Aging Analysis of Receivables (pg. 1.5-21) | |
| Accounting for Accounts Receivable (pg. 1.5-22) | |
| Analysis of Accounts Receivable-Magnitude (pg. 1.5-23) | |
| Analysis of Accounts Receivable-Quality (pg. 1.5-25) | |
| Review 5-5 (pg. 1.5-27) | |
| Analyzing Expenses and Losses (pg. 1.5-27) | |
| Analyze Deductions from Income (pg. 1.5-27) | |
| Analyze Research and Development Expense (pg. 1.5-28) | |
| Provision (Benefit) for Taxes on Income (pg. 1.5-31) | |
| Analyze Discontinued Operations (pg. 1.5-31) | |
| Review 5-6 (pg. 1.5-33) | |
| Pro Forma Income Reporting (pg. 1.5-34) | |
| Regulation G Reconciliation (pg. 1.5-35) | |
| SEC Warnings about Pro Forma Numbers (pg. 1.5-35) | |
| Disclosures and Market Assessments (pg. 1.5-36) | |
| Review 5-7 (pg. 1.5-38) | |
| Analyzing Global Reports (pg. 1.5-39) | |
| Guidance Answer (pg. 1.5-39) | |
| Questions (pg. 1.5-39) | |
| Mini Exercises (pg. 1.5-40) | |
| Exercises (pg. 1.5-45) | |
| Problems (pg. 1.5-52) | |
| IFRS Applications (pg. 1.5-58) | |
| Analysis Discussion Points (pg. 1.5-59) | |
| Ongoing Analysis Project (pg. 1.5-59) | |
| Solutions to Reviews (pg. 1.5-60) | |
| Module 6 Inventories, Accounts Payable, and Long-Term Assets (pg. 1.6-1) | |
| Analyzing Inventory-Costing Methods (pg. 1.6-3) | |
| First-In, First-Out (FIFO) (pg. 1.6-5) | |
| Last-In, First-Out (LIFO) (pg. 1.6-5) | |
| Average Cost (AC) (pg. 1.6-5) | |
| Financial Statement Effects of Inventory Costing (pg. 1.6-7) | |
| Review 6-1 (pg. 1.6-8) | |
| Analyzing Inventory-Reporting (pg. 1.6-9) | |
| Lower of Cost or Market (LCM) (pg. 1.6-9) | |
| LIFO Reserve Adjustments to Financial Statements (pg. 1.6-10) | |
| LIFO Liquidations (pg. 1.6-11) | |
| Review 6-2 (pg. 1.6-13) | |
| Analyzing Inventory-Tools (pg. 1.6-14) | |
| Gross Profit Analysis (pg. 1.6-14) | |
| Days Inventory Outstanding and Inventory Turnover (pg. 1.6-15) | |
| Days Payable Outstanding (pg. 1.6-17) | |
| Cash Conversion Cycle (pg. 1.6-18) | |
| Review 6-3 (pg. 1.6-19) | |
| Analyzing PPE Assets-Capitalization and Depreciation (pg. 1.6-20) | |
| Plant and Equipment (pg. 1.6-20) | |
| Research and Development Facilities and Equipment (pg. 1.6-22) | |
| Review 6-4 (pg. 1.6-22) | |
| Analyzing PPE Assets-Sales, Impairments, and Restructuring (pg. 1.6-23) | |
| Asset Sales (pg. 1.6-23) | |
| Asset Impairments (pg. 1.6-24) | |
| Restructuring Costs (pg. 1.6-25) | |
| Review 6-5 (pg. 1.6-30) | |
| Analyzing PPE Assets-Tools (pg. 1.6-31) | |
| PPE Turnover (pg. 1.6-31) | |
| PPE Useful Life (pg. 1.6-32) | |
| PPE Percent Used Up (pg. 1.6-33) | |
| Review 6-6 (pg. 1.6-33) | |
| Analyzing Global Reports (pg. 1.6-33) | |
| Guidance Answers (pg. 1.6-34) | |
| Questions (pg. 1.6-35) | |
| Mini Exercises (pg. 1.6-36) | |
| Exercises (pg. 1.6-38) | |
| Problems (pg. 1.6-45) | |
| IFRS Applications (pg. 1.6-48) | |
| Analysis Discussion Points (pg. 1.6-49) | |
| Ongoing Analysis Project (pg. 1.6-50) | |
| Solutions to Reviews (pg. 1.6-50) | |
| Module 9 Intercorporate Investments (pg. 1.9-1) | |
| Analyzing Intercorporate Investments (pg. 1.9-3) | |
| Passive Investments in Equity Securities (pg. 1.9-4) | |
| Investments in Debt Securities (pg. 1.9-8) | |
| Analyzing Equity Investments with Significant Influence (pg. 1.9-12) | |
| Investments with Significant Influence (pg. 1.9-12) | |
| Equity Method Accounting and ROE Effects (pg. 1.9-14) | |
| Review 9-2 (pg. 1.9-19) | |
| Analyzing Equity Investments with Control (pg. 1.9-19) | |
| Investments with Control (pg. 1.9-19) | |
| Review 9-3 (pg. 1.9-30) | |
| Analyzing Global Reports (pg. 1.9-31) | |
| Appendix 9A: Analyzing Derivatives (pg. 1.9-32) | |
| Analysis of Derivatives (pg. 1.9-34) | |
| Review 9-4 (pg. 1.9-34) | |
| Appendix 9B: Analyzing Equity Carve-Outs (pg. 1.9-35) | |
| Analysis of Equity Carve-Outs (pg. 1.9-39) | |
| Guidance Answer (pg. 1.9-40) | |
| Questions (pg. 1.9-40) | |
| Mini Exercises (pg. 1.9-40) | |
| Exercises (pg. 1.9-44) | |
| Problems (pg. 1.9-54) | |
| IFRS Applications (pg. 1.9-57) | |
| Analysis Discussion Point (pg. 1.9-58) | |
| Ongoing Analysis Project (pg. 1.9-59) | |
| Solutions to Reviews (pg. 1.9-60) | |
| Module 10 Analyzing Leases, Pensions, and Taxes (pg. 1.10-1) | |
| Analyzing Leases (pg. 1.10-3) | |
| New Lease Reporting Standard (pg. 1.10-3) | |
| Lessee Reporting Example-Microsoft Corporation (pg. 1.10-4) | |
| Lease Accounting (pg. 1.10-6) | |
| Summary of Lease Accounting and Reporting (pg. 1.10-10) | |
| Analysis Issues Relating to Leases (pg. 1.10-11) | |
| Review 10-1 (pg. 1.10-12) | |
| Analyzing Pensions (pg. 1.10-13) | |
| Defined Benefit Pension Plans on the Balance Sheet (pg. 1.10-13) | |
| Analysis Issue-Sufficiency of Plan Assets to Pay Pension Obligations (pg. 1.10-15) | |
| Defined Benefit Pension Plans on the Income Statement (pg. 1.10-16) | |
| Pension Expense Smoothing (pg. 1.10-17) | |
| Fair Value Accounting for Pensions (pg. 1.10-21) | |
| Footnote Disclosure-Key Assumptions (pg. 1.10-23) | |
| Analysis Implications (pg. 1.10-23) | |
| Other Post-Employment Benefits (OPEB) (pg. 1.10-25) | |
| Review 10-2 (pg. 1.10-26) | |
| Analyzing Income Taxes (pg. 1.10-27) | |
| Timing Differences Create Deferred Tax Assets and Liabilities (pg. 1.10-27) | |
| Disclosures for Income Taxes (pg. 1.10-31) | |
| Analysis of Income Tax Disclosures (pg. 1.10-32) | |
| Expanded Explanation of Deferred Taxes (pg. 1.10-33) | |
| Review 10-3 (pg. 1.10-37) | |
| Analyzing Global Reports (pg. 1.10-38) | |
| Appendix 10A: Lease Accounting Example- Finance and Operating Leases (pg. 1.10-39) | |
| Questions (pg. 1.10-40) | |
| Mini Exercises (pg. 1.10-40) | |
| Exercises (pg. 1.10-45) | |
| Problems (pg. 1.10-54) | |
| IFRS Applications (pg. 1.10-64) | |
| Ongoing Analysis Project (pg. 1.10-65) | |
| Solutions to Reviews (pg. 1.10-66) | |
| Module 11 Financial Statement Forecasting (pg. 1.11-1) | |
| Forecasting Process (pg. 1.11-3) | |
| Company Guidance (pg. 1.11-6) | |
| Review 11-1 (pg. 1.11-7) | |
| Forecasting the Income Statement (pg. 1.11-9) | |
| Review 11-2 (pg. 1.11-12) | |
| Forecasting the Balance Sheet (pg. 1.11-13) | |
| Review 11-3 (pg. 1.11-17) | |
| Building Forecasts from the Bottom Up (pg. 1.11-17) | |
| Segment Data (pg. 1.11-17) | |
| Review 11-4 (pg. 1.11-19) | |
| Appendix 11A: Forecasting the Statement of Cash Flows (pg. 1.11-19) | |
| Review 11-5 (pg. 1.11-21) | |
| Appendix 11B: Multiyear Forecasting with Target Cash and New Debt Financing (pg. 1.11-21) | |
| Review 11-6 (pg. 1.11-23) | |
| Appendix 11C: Parsimonious Method for Forecasting NOPAT and NOA (pg. 1.11-23) | |
| Multiyear Forecasting with Parsimonious Method (pg. 1.11-23) | |
| Review 11-7 (pg. 1.11-24) | |
| Appendix 11D: Morgan Stanley’s Forecast Report on Procter & Gamble (pg. 1.11-24) | |
| Questions (pg. 1.11-32) | |
| Mini Exercises (pg. 1.11-32) | |
| Exercises (pg. 1.11-38) | |
| Problems (pg. 1.11-45) | |
| Ongoing Analysis Project (pg. 1.11-51) | |
| Solutions to Reviews (pg. 1.11-52) | |
| Module 12 Cost of Capital and Valuation Basics (pg. 1.12-1) | |
| Basics of Valuation (pg. 1.12-3) | |
| Payoffs from Equity and Debt Instruments (pg. 1.12-4) | |
| Steps in Stock Valuation (pg. 1.12-4) | |
| Intrinsic Value (pg. 1.12-5) | |
| Review of Time Value of Money (pg. 1.12-6) | |
| Valuation of a Debt Instrument (pg. 1.12-9) | |
| Valuation of an Equity Instrument (pg. 1.12-9) | |
| Estimating Cost of Capital (pg. 1.12-10) | |
| Diversifiable and Non-Diversifiable Risk (pg. 1.12-11) | |
| Review 12-1 (pg. 1.12-11) | |
| Cost of Equity Capital Using the Capital Asset Pricing Model (pg. 1.12-12) | |
| Cost of Equity Capital Using a Multi-Factor Model (pg. 1.12-13) | |
| Review 12-2 (pg. 1.12-14) | |
| Cost of Debt Capital (pg. 1.12-14) | |
| Review 12-3 (pg. 1.12-16) | |
| Weighted Average Cost of Capital (pg. 1.12-16) | |
| Review 12-4 (pg. 1.12-18) | |
| Dividend Discount Model (pg. 1.12-18) | |
| Recursive Process of Valuation (pg. 1.12-18) | |
| Framework of the Dividend Discount Model (pg. 1.12-19) | |
| Dividend Discount Model with Constant Perpetuity (pg. 1.12-19) | |
| Review 12-5 (pg. 1.12-20) | |
| Dividend Discount Model with Increasing Perpetuity (pg. 1.12-20) | |
| Issues in Applying the Dividend Discount Model (pg. 1.12-21) | |
| Review 12-6 (pg. 1.12-23) | |
| Appendix 12A: Estimating Cost of Equity Capital (pg. 1.12-23) | |
| Guidance Answer (pg. 1.12-28) | |
| Questions (pg. 1.12-29) | |
| Mini Exercises (pg. 1.12-29) | |
| Exercises (pg. 1.12-30) | |
| Problems (pg. 1.12-31) | |
| Analysis Discussion Points (pg. 1.12-34) | |
| Ongoing Analysis Project (pg. 1.12-36) | |
| Solutions to Reviews (pg. 1.12-37) | |
| Module 13 Cash-Flow-Based Valuation (pg. 1.13-1) | |
| Equity Valuation Models (pg. 1.13-3) | |
| Dividend Discount Model (pg. 1.13-3) | |
| Discounted Cash Flow Model (pg. 1.13-4) | |
| Residual Operating Income Model (pg. 1.13-4) | |
| Model Equivalency (pg. 1.13-4) | |
| Valuation Model Inputs (pg. 1.13-4) | |
| Review 13-1 (pg. 1.13-6) | |
| Discounted Cash Flow (DCF) Model (pg. 1.13-6) | |
| DCF Model Structure (pg. 1.13-6) | |
| Steps in Applying the DCF Model (pg. 1.13-7) | |
| Illustrating the DCF Model (pg. 1.13-8) | |
| Extending the DCF Model (pg. 1.13-9) | |
| Analyzing Global Reports (pg. 1.13-15) | |
| Review 13-2 (pg. 1.13-15) | |
| Appendix 13A: Financial Statements for Procter & Gamble (pg. 1.13-16) | |
| Appendix 13B: Derivation of Free Cash Flow Formula (pg. 1.13-18) | |
| Appendix 13C: Deutsche Bank Valuation of Procter & Gamble (pg. 1.13-18) | |
| Guidance Answer (pg. 1.13-29) | |
| Questions (pg. 1.13-29) | |
| Mini Exercises (pg. 1.13-29) | |
| Exercises (pg. 1.13-30) | |
| Problems (pg. 1.13-33) | |
| Analysis Discussion Point (pg. 1.13-37) | |
| Ongoing Analysis Project (pg. 1.13-37) | |
| Solutions to Reviews (pg. 1.13-38) | |
| Module 14 Operating-Income-Based Valuation (pg. 1.14-1) | |
| Equity Valuation Models (pg. 1.14-3) | |
| Dividend Discount Model (pg. 1.14-3) | |
| Discounted Cash Flow Model (pg. 1.14-4) | |
| Residual Operating Income Model (pg. 1.14-4) | |
| Model Equivalency (pg. 1.14-4) | |
| Valuation Model Inputs (pg. 1.14-5) | |
| Review 14-1 (pg. 1.14-6) | |
| Residual Operating Income (ROPI) Model (pg. 1.14-6) | |
| ROPI Model Structure (pg. 1.14-6) | |
| Steps in Applying the ROPI Model (pg. 1.14-7) | |
| Illustrating the ROPI Model (pg. 1.14-8) | |
| Extending the ROPI Model (pg. 1.14-10) | |
| Review 14-2 (pg. 1.14-11) | |
| Steady State in Valuation (pg. 1.14-11) | |
| Multi-Year Forecast Precision (pg. 1.14-12) | |
| Achieving Steady State (pg. 1.14-12) | |
| Forecasting Steady State-An Illustration (pg. 1.14-13) | |
| Review 14-3 (pg. 1.14-15) | |
| Managerial Insights from the ROPI Model (pg. 1.14-15) | |
| Management Focus on Improved Efficiency (pg. 1.14-15) | |
| Management Focus on Improved Profitability (pg. 1.14-16) | |
| Assessment of Valuation Models (pg. 1.14-16) | |
| Analyzing Global Reports (pg. 1.14-17) | |
| Review 14-4 (pg. 1.14-18) | |
| Appendix 14A: P&G Financial Statements (pg. 1.14-18) | |
| Guidance Answer (pg. 1.14-20) | |
| Questions (pg. 1.14-21) | |
| Mini Exercises (pg. 1.14-21) | |
| Exercises (pg. 1.14-23) | |
| Problems (pg. 1.14-26) | |
| Analysis Discussion Point (pg. 1.14-30) | |
| Ongoing Analysis Project (pg. 1.14-31) | |
| Solutions to Reviews (pg. 1.14-32) | |
| Advanced Accounting, 5e (pg. 2.46) | |
| Chapter 2: Introduction to Business Combinations and the Consolidation Process (pg. 2.46) | |
| Coca-Cola (pg. 2.46) | |
| Business Combinations and (Non-Business) Asset Acquisitions (pg. 2.49) | |
| Review of (Non-Business) Asset Acquisition Accounting (pg. 2.51) | |
| Types of Business Combinations (pg. 2.54) | |
| Topic Review 2.1 (pg. 2.55) | |
| When Does “Control” Exist? (pg. 2.56) | |
| Topic Review 2.2 (pg. 2.57) | |
| Consolidation on the Date of Acquisition (pg. 2.58) | |
| The Intuition Underlying the Consolidation Process (pg. 2.58) | |
| Acquisition-Date Consolidation (Purchase Price Equals Book Value) (pg. 2.62) | |
| Acquisition-Date Consolidation (Purchase Price Greater Than Book Value) (pg. 2.64) | |
| Topic Review 2.3 (pg. 2.70) | |
| Recognizing and Measuring the Identifiable Assets Acquired and the Liabilities Assumed (pg. 2.70) | |
| Recognition Principle (pg. 2.71) | |
| Measurement Principle and Fair Value Estimation (pg. 2.71) | |
| Topic Review 2.4 (pg. 2.79) | |
| Topic Review 2.5 (pg. 2.80) | |
| Disclosure Example: Disney’s Acquisition Of Twenty-First Century Fox (pg. 2.82) | |
| Chapter Summary (pg. 2.85) | |
| Comprehensive Review (pg. 2.86) | |
| Appendix 2A: Measuring Assets Acquired and Liabilities Assumed (Advanced) (pg. 2.87) | |
| Discontinued Operations-Assets Held for Sale (pg. 2.87) | |
| Preacquisition Contingencies (pg. 2.88) | |
| Topic Review 2.6 (pg. 2.88) | |
| Appendix 2B: Deferred Taxes and Business Combinations (pg. 2.91) | |
| Appendix 2C: Pushdown Accounting (pg. 2.95) | |
| Questions (pg. 2.100) | |
| Multiple Choice (pg. 2.102) | |
| CPA Exam Questions (pg. 2.108) | |
| Data Analytics, Data Visualization, and Excel Activities (pg. 2.108) | |
| Exercises (pg. 2.108) | |
| Problems (pg. 2.114) | |
| CPA Simulations and Practice Exam (pg. 2.120) | |
| Topic Review (pg. 2.120) | |
| Comprehensive Review Solution (pg. 2.123) | |
| Chapter 3: Consolidated Financial Statements Subsequent to the Date of Acquisition (pg. 2.124) | |
| Cummins Inc. (pg. 2.124) | |
| Post-Acquisition Consolidation When the Parent Uses the Equity Method of Investment Bookkeeping (pg. 2.127) | |
| Review of the Equity Method of Pre-Consolidation Bookkeeping (pg. 2.128) | |
| Topic Review 3.1 (pg. 2.130) | |
| The Consolidation Process Subsequent to the Date of Acquisition-Equity Method (pg. 2.131) | |
| Example of Consolidation Subsequent to the Date of Acquisition-Equity Method (pg. 2.132) | |
| Consolidated Financial Statements (pg. 2.138) | |
| Topic Review 3.2 (pg. 2.141) | |
| Post-Acquisition Consolidation When the Parent Uses the Cost Method of Investment Bookkeeping (pg. 2.141) | |
| Cost Method of Pre-Consolidation Bookkeeping (pg. 2.142) | |
| The Consolidation Process Subsequent to the Date of Acquisition-Cost Method (pg. 2.144) | |
| Example of Consolidation Subsequent to the Date of Acquisition-Cost Method (pg. 2.146) | |
| Accounting for Goodwill (pg. 2.149) | |
| Recognition of Goodwill (pg. 2.150) | |
| Amortization of Intangible Assets and Goodwill Impairment Evaluation (pg. 2.150) | |
| Topic Review 3.4 (pg. 2.156) | |
| Accounting for a Bargain Acquisition (pg. 2.157) | |
| Chapter Summary (pg. 2.158) | |
| Comprehensive Review-Equity Method (pg. 2.159) | |
| Comprehensive Review-Cost Method (pg. 2.160) | |
| Appendix 3A: Complete Listing of Required Disclosures (pg. 2.161) | |
| Appendix 3B: Common Control Business Combinations and the Pooling-of-Interests Method (pg. 2.162) | |
| Comparison of Pooling-of-Interests with Acquisition Method (pg. 2.164) | |
| Questions (pg. 2.165) | |
| Multiple Choice (pg. 2.167) | |
| CPA Exam Questions (pg. 2.171) | |
| Data Analytics, Data Visualization, and Excel Activities (pg. 2.171) | |
| Exercises (pg. 2.171) | |
| Problems (pg. 2.177) | |
| CPA Simulations and Practice Exam (pg. 2.190) | |
| Topic Review (pg. 2.190) | |
| Comprehensive Review-Equity Method Solution (pg. 2.192) | |
| Comprehensive Review-Cost Method Solution (pg. 2.193) | |
| Chapter 7: Accounting for Foreign Currency Transactions and Derivatives (pg. 2.458) | |
| Coca-Cola (pg. 2.458) | |
| Effect of Exchange Rates on the Income Statement and the Balance Sheet (pg. 2.460) | |
| Accounting for Foreign Currency Transactions Gains and Losses (pg. 2.461) | |
| Accounting for Foreign-Currency-Denominated Accounts Payable (pg. 2.462) | |
| Accounting for Foreign-Currency-Denominated Accounts Receivable (pg. 2.463) | |
| Foreign Currency Transaction Gains and Losses-Summary (pg. 2.464) | |
| Topic Review 7.1 (pg. 2.465) | |
| Derivative Financial Instruments (pg. 2.466) | |
| Hedging Instruments (pg. 2.466) | |
| Accounting for Derivatives (pg. 2.467) | |
| Derivatives-Accounting Hedging (pg. 2.468) | |
| Fair Value Hedge (pg. 2.471) | |
| Topic Review 7.2 (pg. 2.479) | |
| Cash Flow Hedge (pg. 2.479) | |
| Chapter Summary (pg. 2.487) | |
| Comprehensive Review (pg. 2.490) | |
| Appendix 7A: Borrowing in a Foreign Currency (pg. 2.490) | |
| Appendix 7B: Assessing the Effectiveness of Hedging Instruments (pg. 2.491) | |
| Appendix 7C: Required Disclosures Relating to Derivatives (pg. 2.492) | |
| Appendix 7D: Derivative Financial Instruments (pg. 2.493) | |
| Hedging Instruments (pg. 2.493) | |
| Appendix 7E: Examples of (Non-Foreign Currency) Hedging Transactions (pg. 2.496) | |
| Fair Value Hedge Example: Use of Futures Contracts to Hedge Zinc Inventory (pg. 2.496) | |
| Cash Flow Hedge Example: Use of Options to Hedge an Anticipated Purchase of Inventory (pg. 2.497) | |
| Accounting for a Fair Value Hedge Example: Firm Commitment to Purchase Nickel with a Forward Contrac (pg. 2.498) | |
| Interest Rate Swap Example: Interest Rate Swap as a Hedge of a Fixed-Rate Instrument-Fair Value Hedg (pg. 2.499) | |
| Questions (pg. 2.501) | |
| Multiple Choice (pg. 2.501) | |
| CPA Exam Questions (pg. 2.505) | |
| Data Analytics, Data Visualization, and Excel Activities (pg. 2.505) | |
| Exercises (pg. 2.505) | |
| Problems (pg. 2.517) | |
| CPA Simulations And Practice Exam (pg. 2.522) | |
| Topic Review (pg. 2.522) | |
| Comprehensive Review Solution (pg. 2.524) | |
| Chapter 8: Consolidation of Foreign Subsidiaries (pg. 2.526) | |
| Starbucks Corporation (pg. 2.526) | |
| Functional Currency (pg. 2.529) | |
| The Translation Process (pg. 2.530) | |
| Translation Example-Year of Acquisition (pg. 2.533) | |
| Translation Example-Second Year after Acquisition (pg. 2.535) | |
| Required Disclosures Relating to the Cumulative Translation Adjustment (pg. 2.539) | |
| Topic Review 8.1 (pg. 2.540) | |
| The Remeasurement of Foreign-Currency-Denominated Financial Statements (pg. 2.541) | |
| Remeasurement Example (pg. 2.542) | |
| Topic Review 8.2 (pg. 2.546) | |
| Consolidation of Foreign Subsidiaries (pg. 2.548) | |
| Example of Consolidation Subsequent to the Date of Acquisition-Equity Method (pg. 2.548) | |
| Disposition of the Cumulative Translation Adjustment upon Sale of the Subsidiary (pg. 2.551) | |
| Example of Consolidation Subsequent to the Date of Acquisition-Cost Method (pg. 2.552) | |
| Chapter Summary (pg. 2.554) | |
| Comprehensive Review (pg. 2.555) | |
| Appendix 8A: Direct Computation of Translation Adjustment and Remeasurement Gain (Loss) (pg. 2.556) | |
| Direct Computation of the Translation Adjustment (pg. 2.556) | |
| Direct Computation of the Remeasurement Gain or Loss (pg. 2.557) | |
| Appendix 8B: Hedging the Net Investment in a Foreign Subsidiary (pg. 2.558) | |
| Example #1: Use of a Forward-Exchange Contract to Hedge a Net Investment in a Foreign Subsidiary (pg. 2.559) | |
| Example #2: Use of a Non-Derivative to Hedge a Net Investment in a Foreign Subsidiary (pg. 2.560) | |
| Questions (pg. 2.560) | |
| Multiple Choice (pg. 2.561) | |
| CPA Exam Questions (pg. 2.564) | |
| Data Analytics, Data Visualization, and Excel Activities (pg. 2.565) | |
| Exercises (pg. 2.565) | |
| Problems (pg. 2.574) | |
| CPA Simulations and Practice Exam (pg. 2.580) | |
| Topic Review (pg. 2.580) | |
| Comprehensive Review Solution (pg. 2.582) | |
Peter D. Easton
Peter D. Easton is an expert in accounting and valuation and holds the Notre Dame Alumni Chair in Accountancy in the Mendoza College of Business.
Professor Easton’s expertise is widely recognized by the academic research community and by the legal community. Professor Easton frequently serves as a consultant on accounting and valuation issues in federal and state courts.
Professor Easton holds undergraduate degrees from the University of Adelaide and the University of South Australia. He holds a graduate degree from the University of New England and a PhD in Business Administration (majoring in accounting and finance) from the University of California, Berkeley.
Professor Easton’s research on corporate valuation has been published in the Journal of Accounting and Economics, Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, Review of Accounting Studies, and Journal of Business Finance and Accounting.
Professor Easton has served as an associate editor for 11 leading accounting journals and he is currently an associate editor for the Journal of Accounting Research, Journal of Business Finance and Accounting, and Journal of Accounting, Auditing, and Finance. He is an editor of the Review of Accounting Studies.
Professor Easton has held appointments at the University of Chicago, the University of California at Berkeley, Ohio State University, Macquarie University, the Australian Graduate School of Management, the University of Melbourne, Tilburg University, National University of Singapore, Seoul National University, and Nyenrode University. He is the recipient of numerous awards for excellence in teaching and in research. Professor Easton regularly teaches accounting analysis and security valuation to MBAs. In addition, Professor Easton has taught managerial accounting at the graduate level.
Patrick E. Hopkins
Patrick E. Hopkins, is a professor and Deloitte Foundation Accounting Faculty Fellow at Indiana University’s Kelley School of Business. Professor Hopkins received his B.S. and M.Acc. from the University of Florida and his Ph.D. from the University of Texas at Austin.
Prior to entering the accounting doctoral program, Professor Hopkins served as a senior consultant with the Emerging Business Services practice of Deloitte, Haskins and Sells in Miami, Florida. Professor Hopkins has been at IU since 1995, where he teaches undergraduate and graduate courses on financial reporting for mergers, acquisitions and changes in corporate structure. He also served as a Visiting Professor at Stanford University’s Graduate School of Business, where he taught courses on global financial reporting and on accounting for mergers, acquisitions and changes in corporate structure. During his career, Professor Hopkins won each of the top teaching awards in the Kelley School of Business, including the Trustees Teaching Award, the Schuyler F. Otteson Award, and the Sauvain Award. He also teaches in international and online executive MBA programs at Indiana University, and in the doctoral program at HHL University in Leipzig, Germany. Professor Hopkins is also a widely respected research scholar in the area of financial reporting, and investor and analyst judgment and decision making. His work has appeared in top accounting journals, including The Accounting Review, the Journal of Accounting Research, Contemporary Accounting Research, and Accounting Organizations and Society, and has been discussed in business press publications, including Barron’s, CFO, and The Deal. He is the past winner of the American Accounting Association’s Financial Accounting and Reporting Section Best Research Paper Award, the Indiana University Outstanding Junior Faculty Award, and Kelley School of Business Outstanding Research Award.
| Financial Statement Analysis & Valuation, 6e (Easton, McAnally, Sommers) | |
|---|---|
|
Errata Last Updated: Oct 30 2023 |
Corrections to identified errors in the first printing of the text. |
|
Appendix C Last Updated: Jul 13 2020 |
Appendix C: Comprehensive Case / Harley-Davidson |
|
Excel Templates - Students Last Updated: Jul 12 2022 |
Excel templates for use with Module Reviews. |
|
Self Study Quizzes Last Updated: Jul 24 2023 |
Brief practice quizzes containing multiple choice questions for each module. Solutions included. |
| Advanced Accounting, 5e (Hopkins, Halsey) | |
|---|---|
|
Errata Last Updated: Dec 11 2023 |
Here are corrections to the text identified after the book's printing. |
|
Errata Last Updated: Dec 11 2023 |
Here are corrections to the text identified after the book's printing. |
|
Excel Templates Last Updated: Aug 10 2023 |
Excel Student Data templates for designated problems. |
|
Additional Gleim Exam Prep Resources Last Updated: Jan 29 2024 |
Use this link to sign up for extra FREE Gleim resources! Gleim.com/CambridgeEQE The Gleim EQE Test Prep will enhance your understanding of difficult accounting concepts and improve comprehension skills, resulting in higher grades in your course. myBusinessCourse students get special discounts on Gleim CPA, CMA, CIA & EA! Click here for exclusive access: Gleim.com/Cambridge. To learn more about careers in accounting and which accounting path is right for you, access the Gleim Accounting Career Resource Center: https://www.gleim.com/resources/accounting-careers/. |
