阶段网课mikesbr独立录完结版基础文字of financial statement

AppraisalofinformationInterpretationoffinancialstatement1RatioysisRatioysismayhighlightunusualresultsorclarifytrends,enablingvarioususersofaccountstomakeinformeddecisionsrelatingtothe Forratiostobeuseful,comparisonsmustbemade.Ontheirowntheyareuselessforanysensibledecisionmaking..22Categoriesofratios -Investors’22.1PROFITABILITYReturnoncapitalemployed(ROCE) NCL+.EBIT=Itisoftenreferredto.Capital NCL+ TotalassetslesscurrentliabilitiesGrossprofitmargin Gross Operatingprofitmargin= NCL+Equity22.2LIQUIDITYCurrentratio CurrentCurrentQuickratio(oracidtest) Currentassets-CurrentInventoryturnoverdays= ×365daysCostofReceivablescollectionperiod=Trade ×365daysCreditPayablespaymentperiod Trade ×365days*Creditpurchases22.3Debt/equity= Debt/(debt+equity)= NCL+Interestcover Interesthighergearing:riskierbusinessitmustmeetthesedebtrepaymentsorwouldfacelowergearing:beabletosecuredebtcoverinterestpaymentsfromoperating22.4INVESTORS’Dividendyield=Dividendper ShareDividendcover= DividendperPrice/Earnings )ratio Share 关指标间的相互关系。杜邦体系最初因杜邦公司成功应用而得名。 数（或者说1元总资产支持的营业收入），它评价的是3LimitationsofinterpretationtechniquesComparisonwithanentity'spreviousperiodfinancialInflationwhencomparingtopreviousComparisonwithasimilarentity/industry arkwhencomparingtodifferentcompaniese.g.ROCEhigherifuse forassetsYearendfiguresnotDifferentcompaniesinthesamebusinessmayhavedifferentriskprofilesorspecificfactorsaffectingthem,makingindustrycomparisonslessmeaningfulEx-2019/12Q4a)Management’sintentandmotivationwillofteninfluenceaccountinginformation.However,corporatefinancialstatementsnecessarilydependonestimatesandjudgement.Financialstatementsareintendedtobecomparablebuttheir ysismaynotbethemostaccuratewaytojudgetheperformanceofany .Thislackofcomparabilitymaybeduetodifferentaccounting choicesordeliberatemanipulation.Discussthereasonswhyanentitymaychooseaparticular whereanInternationalFinancialReportingStandardallowsanaccounting choiceandwhetherfaithfulrepresentationandcomparabilityareaffectedbysuchchoices.(6Answer-WhereanIFRSstandardallowsanentityanaccountingchoice,thenthefinancialstatementswillbeinfluencedandaffectedbythatchoice.Management’sintentandmotivationwillinfluenceaccountinginformation.Theaccounting chosencanbedrivenbyself-interest,byawishto isetheinterestsofshareholders,orbyaWherethereisflexibilitywhenapplyingtheIFRSstandard,Entitiesmayusethefinancialchoicesto,andinordertoinfluencecontractualeswhichdependontheaccountingfiguresreported..Accountingchoicesexisttoprovidecompanieswhichoperateunderdifferentbusinessmodelswiththeoptionofutilisinganaccountingmethodwhichbestrepresentstheiroperations.AnyaccountingchoiceinIFRSstandardsshouldstillresultinthefinancialstatements.Afaithfulrepresentationmeansthattothe umextentpossible,thefinancialstatementsarecomplete,neutraland fromerror.Afaithfulrepresentationisaffectedbythelevelofmeasurementuncertaintyinthefinancialstatements.isoneofthefourqualitativecharacteristicswhichenhancestheusefulnessofinformation.Thusaccountinginformationwouldbemoreusefulifitcanbecomparedwithsimilarinformationfromotherentities,orfromthesameentity.iHowever,itisextremelydifficultforentitiestohave‘comparable’financialinformation.ComparabilityiscrucialtoimprovefinancialreportingqualitybutitcanbearguedthatcomparabilityismademoredifficultbythefactthattheBoardallowsentitiestochoosebetweenalternativemeasurementbases.Environmental,economic,political,cultural,operationalcouldbesolvedwiththeexistenceof inthestandards,but,especiallyifthereareinternalorexternalfactorsinfluencingthereliabledisclosureofanitem.Afaithfulrepresentationmightleadtocomparability,becauseitshouldreflectthecharacteristicsoftheassetorliability.,Link:ChangesinaccountingpoliciesThesameaccountingpoliciesareusuallyadoptedfromperiodtoperiod,toallowusersto ysetrendsovertimeinprofit,cashflowsandfinancialposition.Changesinaccounting willthereforeberareandshouldbeThechangeisrequiredbyanIFRS;Thechangewillresultinamoreappropriatepresentationofeventsortransactionsinthefinancialstatementsoftheentity,providing Pilotpaper2Q4b)Pilotpaper2Q4b)Asaresultof propertyprices,Kikipurchasedfivebuildingsduringthecurrentperiodinordertobenefitfromfurthercapitalappreciation.Kikihasneverownedaninvestmentpropertybefore.InaccordancewithIAS40InvestmentProperty,thedirectorsareawarethattheycanmeasurethebuildingsusingeitherthefairvaluemodelorthecostmodel.However,theyareconcernedabouttheimpactthatthischoicewillhaveonthe ysisofKiki’sfinancialperformance,positionandcashflowsbycurrentandpotentialinvestors..Discussthepotentialimpactwhichthischoiceinaccounting willhaveon ysisofKiki’sfinancialstatements.Youranswershouldrefertokeyfinancialperformance .Professionalmarkswillbeawardedinpart(b)forclarityandqualityofAnswerAnswer4(b)InaccordancewithIAS40InvestmentProperties,thebuildingsshouldbeinitiallymeasuredatcost.Ifisapplied,thenthebuildingswillberecognisedatcostlessaccumulateddepreciationandimpairmentlosses.Iftheisapplied,thenthebuildingswillberemeasuredtofairvalueateachreportingdate.Gainsandlossesonremeasurementarerecognisedinthestatementofprofitorloss.Nodepreciationischarged.Assumingthatpropertypricesrise,thefairvaluemodelwillleadtoanincreaseinreportedassetsonthestatementoffinancialposition.Incontrast,investmentpropertymeasuredusingthecostmodelisdepreciated,whichreducesitscarryingamount.ThismeansthatthefairvaluemodelmaymakeKikiappearmoreasset-rich.Somestakeholdersmay ceimportanceonanentity’sassetbase,asitcanbeusedas forobtainingnewfinance..However,reportinghigherassetscansometimesbeperceivednegatively.Forexample, willdeteriorate,andsoKikimay..Ifassetsincrease,thenequityalsoincreases.Assuch,thefairvaluemodelmayleadtoKikireportinga mayreducetheperceptionofrisk,encouragingfurtherinvestment..Intimesofrisingprices,theuseofthefairvaluemodelwillleadtogainsbeingreportedinthestatementofprofitorloss.Thiswillincreaseprofitsfortheperiod.Incontrast,thedepreciationchargedunderthecostmodelwillreduceprofitsfortheperiod.Therefore, akeystockmarketandinvestorratio,islikelytobehigherifthefairvaluemodelisadopted.,.However,itshouldbenotedthat Insomeyears,fairvaluegainsmaybemuchlargerthaninotheryears.Ifpropertypricesdecline,thenthefairvaluemodelwillresultinlosses.Assuch,reportedprofitsaresubjecttomorevolatilityifthefairvaluemodelisadopted.Thismayincreasestakeholders’perceptionofrisk.,.Incontrast,thedepreciationexpenserecordedinaccordancewiththecostmodelwillbemuchmorepredictable,meaningthatinvestorswillbebetterabletopredictKiki’sfutureresults.Manyentitiesnowpresentalternativeperformancemeasures(APMs),suchasEBITDA(earningsbeforeinterest,tax,depreciationandamortisation).Otherentitiespresentwhichstripouttheimpactofnon-operatingornon-recurringgainsorlosses(suchastheremeasurementofinvestmentproperties).AlthoughtheuseofAPMshasbeencriticised,Kikimayconsiderthemtobeusefulinhel investorstoassessunderlyingbusinessperformancethroughtheeyesofmanagementandtoeliminatetheimpactofcertainaccounting choiceshave ontheoperating,investingorfinancingcashflowsreportedinthestatementofcashflows.Itshouldbenotedthatentitiesusingthecostmodelforinvestmentpropertiesarerequiredtodisclosethefairvalue.Suchdisclosuresenabletobedrawnbetweenentitieswhichaccountforinvestmentpropertyunderdifferent2019/06Q3(b)2019/06Q3(b)Previousleasingstandardshavebeencriticisedaboutthelackofinformationtheyrequiredtobedisclosedonleasingtransactions.TheseconcernswereusuallyexpressedbyinvestorsandsoIFRS16Leaseswasissuedinresponsetothesecriticisms.Discusssomeof tofinancialstatementswhichinvestorswillseewhencompaniesapplythelesseeaccountingrequirementsinIFRS16.(6marks)Fora withsignificantoff-balancesheetleases,discussthelikelyimpactthatIFRS16willhavegenerally andparticularlyon:Earningsbeforeinterestandtaxtointerestexpense eEarningsbeforeinterestandtaxtocapitalemployed( arningsbeforeinterest,tax,depreciationandamortisation.(6marks)eProfessionalmarkswillbeawardedinquestion3bforclarityandqualityofdiscussion.(2AnswerAnswer(b)-(i)IFRS16Leasesintroducesasinglelesseeaccountingmodelandshouldreducethenumberofoff-balancesheetleases.Uponleasecommencement,alesseerecognisesaright-of-useassetandaleaseliability.Afterleasecommencement,alesseemeasurestheright-of-useassetusingacostmodellessaccumulateddepreciationandaccumulatedimpairment.Theleaseliabilityisinitiallymeasuredatthepresentvalueoftheleasepaymentspayableovertheleaseterm,discountedattherateimplicitintheleaseifthatcanbereadilydetermined.Leaseliabilitiesincludeonlyeconomicallyunavoidablepayments.IFRS16requiresalesseetootherliabilitiesasaseparatelineitem,ortogetherwithotherliabilities,inamannerwhichistounderstandingthelessee’sfinancialposition.Alesseewillalsosplitleaseliabilitiesintocurrentandnon-currentportions,basedonthetimingofpayments.theassetsandliabilitiesresultingfromoff-balancesheetleaseswhencalculatingratiosasthereshouldbefeweroff-balancesheetleases.IFRS16willresultin aboutleasesbothonthestatementoffinancialpositionandinthenotesandwillprovideamoreaccuratereflectionoftheeconomicsofleases.Investorsshouldbearinmindthatsomesectorsandsomecompanieswillbemoreaffectedthanothers.Asaresult,companieswithpreviousmaterialoff-balancesheetleaseswillThestandardwillreducecomplexityinfinancialstatementsasitshouldtobemadebetweenthosecompanieswholeaseassetsandthosewhoborrowtobuyassets. willtypicallyreducecarryingamountofleaseliabilities.Thiswillresultinforcompanieswithpreviousmaterialoff-balancesheet

thanAnswerAnswer(b)-(ii) twhichwaspreviouslyunrecognisedwillresultinahigherassetbase,whichwillaffectratiossuchasassetturnover.iThewhichwaspreviouslyunrecognisedwillresultinhigherfinancialliabilities,whichwillaffectgearing.iwTherecognitionwTherecognitionnsteadillresultSimilarly,profitmeasureswhichexcludeinterestanddepreciationbutpreviouslyincludedoperatingleaseexpense,suchasEBITDA,willbehigherunderIFRS16.ttherewillbeanincreaseintheearningsmeasure(i.e.EBITDA)whichwillnotbeproportionatetotheincreaseininterest.ThechangeintheratiowillhecharacteristicsoftheleasettitislikelythatROCEwillunderIFRS16becausetheincreaseinoperatingprofitistotheincreaseincapitalemployed.iratioofdebttoEBITDAislikelytoberbecause theincreaseinearnings.willincreasebecauseofthefactthatleaseliabilitieswillberecognisedonthestatementoffinancialposition.Forcompanieswhichhavematerialoff-balancesheetleases,IFRS16isexpectedtoresultinhigherprofitbeforeinterestbecausea presentstheimplicitinterestinleasepaymentsforformeroff-balancesheetleasesaspartoffinancecosts.Previously,theentireexpenserelatedtooff-balancesheetleaseswasincludedaspartofoperatingexpenses.Thesizeoftheincreaseinoperatingprofit,andfinancecosts,willdependonthesignificanceofleasingactivitiestothe 2019/12Q42019/12Q4GuidanceCoisconsideringthefinancialresultsfortheyearended31December20X6.Theindustry cesgreatrelianceonthereturnonequity(ROE)asanindicatorofhowwella usesshareholders’fundstogenerateaprofit.ReturnonequityGuidanceCo ysesROEinordertounderstandthefundamentaldriversofvaluecreationinthe .ROEiscalculatedas:Returnonequity=Netprofitbeforetax·Sales· GuidanceCousestocalculateThefollowinginformationintable1relatestoGuidanceCoforthelasttwoyears:NetprofitbeforeEquityat31SpecialpurposeentityDuringtheyearended31December20X6,GuidanceCostatedthatithadreorganiseditsassetsandsetupaSPE.GuidanceCotransferredpropertytotheSPEatitscarryingamountof$50million,buthadincorrectlychargedrevaluationreserveswiththisamountratherthanshowingthetransferasaninvestmentintheSPE.ThepropertywastheSPE’sonlyasset.However,GuidanceCostillmanagedtheproperty,andanyprofitorlossrelatingtotheassetsoftheentitywasremitteddirectlytoGuidanceCo.GuidanceCohadnointentionofconsolidatingtheSPE.MiscellaneousGuidanceCohasboughtback25millionsharesof$1for$1·20pershareduringtheyearended31December20X6forcashandcancelledtheshares.Thistransactionwasdeemedtobelegal.GuidanceCoalsoraisedloancapitalforthefirsttimeduringtheyearended31December20X6of$20millioninordertohelpwiththebuy-backof’sGuidanceCohadpurchaseda25%interestinanassociate on1July20X6forcash.Theinvestmenthadcost$15millionandtheassociatehadmadeprofitsof$32millionintheyearto31December20X6.GuidanceCoaccountedforthepurchaseoftheassociatecorrectly.Allofthesemiscellaneoustransactionshavebeenaccountedforinthefinancialinformationfortheyearended31December20X6intable1.Q4Q4b)(i)DiscusstheusefulnesstoinvestorsoftheROEratioandprovidedaboveandcalculatetheseratiosfortheyearsended31December20X5and20X6.Thesecalculationsshouldbebasedupontheinformationprovidedintable1. (5marks)(ii)DiscusstheimpactthatthesettingupoftheSPEandmiscellaneoustransactionshavehadonROEanditscomponentparts.Giventheseconsiderations,adjusttable1andrecalculatetheROEfor20X6therebymakingitmorecomparabletotheROEof20X5. (12marks)Professionalmarkswillbeawardedinquestionforclarityandqualityofdiscussion. (2marks)(25Answer-(b)r atiomeasurestherateofreturnwhichtheownersofissuedsharesofa receiveontheirshareholdingsintermsofprofitability.ROEsignifieshowgoodtherisingeneratingprofitontheinvestmentitreceivesfromitsThismetricisespeciallyimportantfroman itcanbeusedtojudgehowefficientlythefirmwillbeabletouseshareholder’sinvestmenttogenerateadditionalrevenues. lshowmuchprofitmakesoneverydollarofeasuresthevalueofa ’ssalesorrevenuesgeneratedrelativetothecarryingamountofitsassets.Theassetturnoverratiocanoftenbeusedasanindicatoroftheefficiencywithwhichaisdeployingitsassetsingeneratingi ndicatestherelativeproportionthatequityisusedtofinance ’sassets.Theequityratioisagoodindicatoroftheiusedbya bymeasuringtheproportionofthetotalassetswhicharefinancedbyshareholders,asopposedtocreditors.NetprofitAssetEquityReturnonAnswerAnswer-(b)SettingupofspecialpurposeentityConsolidatedFinancialStatementsstatesthataninvestorSPEwhenitisexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeSPEandhastheabilitytoaffectthosereturnsthroughitspowerovertheSPE.AsGuidanceCoobtainstherewardsfromtheassetstransferredandisexposedtotherisks,theSPEshouldbeconsolidatedbyGuidanceCoinitsgroupfinancialstatements.Bytransferringtheirassetstoa.However,whenthepropertyisincludedinassetsandthechargeiseliminatedfromrevaluationreserves,the.MiscellaneousAmajorconcernaboutusingROEiswhena shares,itonthestatementoffinancialpositionandinthecaseofGuidanceCo,itscashandconsequentlyitstotalassets.Asaresult,theperformancemetrics–assetturnoverandROE–willbeaffected.TheROEfigurecouldproduceamisleadingindicatorastohowwella isbeingmanaged.AstheequityportionofROEshrin