Financial Modeling Copyright 2009 Investment Banking Institute www.ibtraining.com Table of Contents I. Introduction II. Spreading Historical Financial Statements III. Deriving Historic Ratios, Trends and Variables IV. Financial Statement Projections V. Integration of Financial Statement Projections / Revolver Modeling 2 Introduction Uses for Financial Models in Investment Banking and Private Equity Investment bankers and Private Equity Professionals often must create financial
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CHEE YEN MUN | 1102700429 | CHANDRAPRIYA D/O GOPALACHANDRAN | 1101110492 | GAYATHIRY ULAKANATHAN | 1101110649 | a) In your opinion, why do standard setters require measurement methods other than traditional historical cost accounting? Accounting should be the most straightforward of topics for policymakers to deal with. Accounting is mainly about describing the past to reflect faithfully what has already happened. Yet, over the years, many securities regulators
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a worldwide basis, the foreign currency accounts prepared by foreign operations must be restated into the parent company's reporting currency. B. There are two major issues related to the translation of foreign currency financial statements. 1. Which method should be used? 2. How should the resulting translation adjustment be reported on the consolidated financial statements? C. Translation methods differ on the basis of which accounts are translated at the current exchange rate
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a worldwide basis, the foreign currency accounts prepared by foreign operations must be restated into the parent company's reporting currency. B. There are two major issues related to the translation of foreign currency financial statements. 1. Which method should be used? 2. How should the resulting translation adjustment be reported on the consolidated financial statements? C. Translation methods differ on the basis of which accounts are translated at the current exchange rate
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Financial Accounting Homework Case I: Land Securities Group Should Land Securities choose the cost or fair value model for reporting its investment property in its consolidated financial statements? a) Explain the financial statement effects of the different models b) Consider the perspectives of management, (current and potential) shareholders and lenders, as well as auditors c) Take into account the different objectives of financial reporting d) Conclude with a well-reasoned decision
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purposes, this intra-entity gross profit must be deferred by eliminating the amount from the inventory account on the balance sheet and from the ending inventory figure within cost of goods sold (Entry G). 2. Because the effects of the transfer carry over into the subsequent fiscal period, the unrealized gross profit must also be removed a second time: from the beginning inventory component of cost of goods sold and from the beginning retained earnings balance (Entry *G). a. The retained
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still shows it at $100,000. It should be valued at $115,000. That’s what it’s worth. Or, at a minimum, at $106,000.” Respond to this statement with specific reference to the accounting principles applicable in this situation. The concept of historical cost determines the balance sheet valuation of land. The realization concept requires that a transaction has occurred for the profit to be recognized. 4. Identify the accounting principle(s) applicable to each of the following situations: a.
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from both the Sales and the Purchases (Inventory) accounts. 3. Sales price per unit ($900,000 ÷ 3,000 units) $ 300 Number of units in Safeco’s ending inventory × 500 Intercompany inventory at transfer price $150,000 Gross profit rate (.6 ÷ 1.6) .375 Intercompany profit in ending inventory $56,250 4. In intercompany transactions, a transfer price is often established that exceeds the cost of the inventory. Hence, the seller is recording
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98 AS 6 (revised 1994) Accounting Standard (AS) 6 (revised 1994) Depreciation Accounting Contents INTRODUCTION Definitions EXPLANATION Paragraphs 1-3 3 4-19 Disclosure 17-19 MAIN PRINCIPLES 20-29 94 AS 6 (issued 1982) Depreciation Accounting 99 Accounting Standard (AS) 6* (revised 1994) Depreciation Accounting [This Accounting Standard includes paragraphs set in bold italic type and plain type, which have equal authority. Paragraphs in bold italic
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Financial Accounting – Historical Cost Accounting Student Name: Richard Simpson B00580164 Total Word Count: Contents Page Executive Summary The purpose of this report is to analyse historical cost accounting providing information on the strengths and weaknesses, alternatives to historical cost accounting and current regulatory guidance on how to deal with the effects of inflation on the financial statements. This report has also considered and explained the following
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