MindMap Gallery CFA Financial Report Pre corse
Basic knowledge related to CFA exam financial reporting, including basic concepts and calculations, ratio analysis
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This is a mind map about bacteria, and its main contents include: overview, morphology, types, structure, reproduction, distribution, application, and expansion. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about plant asexual reproduction, and its main contents include: concept, spore reproduction, vegetative reproduction, tissue culture, and buds. The summary is comprehensive and meticulous, suitable as review materials.
This is a mind map about the reproductive development of animals, and its main contents include: insects, frogs, birds, sexual reproduction, and asexual reproduction. The summary is comprehensive and meticulous, suitable as review materials.
Financial Reporting & Analysis
Introduction
Accounting Standards
GAAP (Accepted Accounting Principle)
FASB (Financial Accounting Standards Board)
IFRS (International Financial Reporting Standards)
IASB (International Accounting Standards Board)
SEC (Securities and Exchange Commission)
Accounting Elements
AssetAsset
Controlled & Expect to generate inflow
Liability liabilities
loan, bond, account payable, notes payable
purchase on creditpurchase on credit
Equity
net asset
owner's equity
Income
revenue
other incomeother operating income
gain non-operating income
Expense fee
COGS (Cost of Goods Sold main business/production related costs)
SG&A (Selling, general and administrative Cost)
Interest ExpenseFinancial expenses/debt interest
Income Tax ExpenseIncome Tax Expense
LossLoss
profitprofit
net income/the bottom line
Not one of the five elements
Accounting Equation
Asset=Liability Owner's equity
Net Income=Income-Expense
Asset Expense=Liability Capital Income-Expense
Financial Reporting
Income Statement
Gross ProfitGross Profit
Operating IncomeOperating Profit
EBIT Earnings before Interest and Taxes
EBT profit before tax
Depreciation ExpenseDepreciation expense
Amortization amortization expense
Implicit in COGS and SG&A
Interest Expense
Tax-deductible/Tax shield
Debt financing: interest payments are made before taxes are paid, reducing taxes Equity Financing: Dividends after tax
EPS (Earnings per share)
Basic EPS
Diluted EPS diluted earnings per share
Revenue Recognition
Accrual AccountingAccrual Accounting
Balance sheet
Assets
Current AssetslCurrent Assets
Cash and cash equivalentsCash and cash equivalents
Accounts receivableAccounts receivable
Sold on Credit
InventoryInventory
Goods for Sale Material for Manufacturing
Cost flow method
Specific identification method
FIFO (First-in, First-out method first-in first-out method)
LIFO (Last-in, First-out method last-in-first-out method)
Pay less tax, not allowed by IFRS
Weighted average cost methodWeighted average cost method
Prepaid ExpensePrepaid Expense
Non-current AssetsNon-current Assets
PP&E (Property, plant and Equipment—— Tangible Assets Tangible/Fixed Assets)
Land has no depreciation; it is an intangible asset in China
Straight-line Depreciation Straight-line depreciation method
Depreciation Expense=(Cost—Residual Value)/useful life
Double declining balance depreciation double depreciation method
Depreciation Expense=(Cost-Accumulative depreciation)/useful life X 2
Patents, Trademark, Copyright Goodwill Goodwill - Intangible Assets
Financial AssetsFinancial Assets
Held-to-maturity securities Held-to-maturity financial assets - debt security / bond
Trading SecuritiesTrading Financial Assets
Available-for-sale Securities Available-for-sale financial assets
Measurement of Assets
Historical Cost
Mostly used in PP&E fixed assets
Fair Value
Arm's-length transaction
Current cost, Realizable value, Present value, Amortized cost
Liabilities
Current liabilities
Account payableAccounts payable
Purchase on credit
Accrued expenseAccrued expenses
wage payable, tax payable, interest payable, dividend payable
Unearned revenueAccounts received in advance
Payment has been received, but delivery has not been made
Non-current liabilities
Debt payable long-term payable
Long-term debt long-term interest-bearing debt
Bank loansBank loans
Notes payable to pay medium-term debt
Bonds payable to pay long-term debt
Lease payable long-term lease payment
finance lease
Owner's equity
Contributed capital has invested capital
Preferred stock preferred stock
Priority in dividends, priority in payment, no voting rights
Common stock normal stock
Have the right to dividends and have the right to vote
Additional paid-in capital Equity premium
Treasury stock
No dividend rights, no voting rights
Retained earningsRetained earnings
Accumulated PCI Accumulated other comprehensive income
Four American Standards
Foreign currency translationCurrency conversion
minimum pension liabilitypension
derivationpension
available for sale securities available for sale financial assets
International standards plus one
Revaluation surplus Asset revaluation appreciation
Non-controlling (minority) interest minority shareholders' equity
Cash flow statement
GAAP
CFO (Cash by operating activities) operating activities
CFI (Cash by investing activities investment activities
CFF (Cash by financing activities) financial activities
IFRS
Footnotes Financial Statement Notes
AuditedNeed to be audited
Accounting methods/accounting assumptions/acquisitions and mergers/legal proceedings/asset disposal, etc.
Supplemental Disclosure
Not auditedNo audit required
MD&A (Management's Discussion and Analysis) management analysis and discussion
Audit ReportAudit Report
Unqualified opinionUnqualified opinion
Qualified OpinionReserved
Adverse opinionNegative opinion
Disclaimer of opinionRefuse to express an opinion
Fundamental of Analysis
Profitability ration Profitability ratio
Net profit marginnet profit margin
Net income/Sales revenue X 100%
Gross profit marginGross profit margin
Gross profit/Sales revenue X 100%
Activity ratio
Liquidity ratio
Solvency ratio
Valuation Ratio