INDEX
AbitibiBowater Inc.
Accelerated depreciation methods
Accounting
accrual basis
acquisition method of
cash basis
clean-surplus
dirty-surplus
discretion in
double-entry
equity method of
fair value
mark-to-market inventory
pooling of interest method of
subscription
Accounting equations
balance sheet
explanation of
income statement
statement of retained earnings
use of
Accounting goodwill
Accounting policies
changes in
disclosures regarding changes in
Accounting process
accounting records and
accruals and
financial statements and
illustration of
valuation adjustments and
Accounting profit
differences between taxable income and
differences between taxable profit and
explanation of
Accounting standards
case study anticipating effects of changes in
for cash and cash equivalents
effect of differences in
organizations involved in
Accounting systems
debit and credit
discretion in
flow of information in
spreadsheet approach to
Accounts
chart of
contra
doubtful
explanation of
Accounts receivable
analysis of
explanation of
Accrual basis accounting
cash basis vs.
explanation of
Accruals
aggregate
analysis of
balance-sheet-based
cash-flow-statement-based aggregate
decomposition of
entries for
explanation of
Accrued expenses
Accrued interest
Accrued wages
Accumulated benefit obligation
Accumulated depreciation
Accumulated other comprehensive income
Acer Inc.
Acquisition method of accounting
for business combinations
explanation of
Acquisitions
bargain
cost at
explanation of
Activity ratios
calculation of
definitions of commonly used
evaluation of
interpretation of
Actuarial gains and losses (AGLs)
explanation of
on pension and other postretirement benefit expenses
Adjusted trial balance
Adjusting journal entries
Advertising, as expense
Akzo Nobel AG
Alcatel-Lucent (ALU), consolidated financial statements and notes of
Allowance for bad debts
Altria Group, Inc.
American Institute of Certified Public Accountants (AICPA)
Ameritrade Holding Corporation
Amortization
bond
cash flow statement and
of excess purchase price
explanation of
of intangible assets
of long-lived assets
Amortized cost
AMR Corporation
Analyst adjustments
framework for
related to goodwill
related to inventory
related to investments
related to off-balance-sheet financing
related to property, plant, and equipment
Analysts
role of
types of
Anheuser-Busch
Annual reports, management commentary or analysis in
Anticipating effects of changes in accounting standards (case study)
Antidilutive securities
Apple Inc.
balance sheet of
cash flow analysis of comparables of
cross-sectional common-size analysis of
earnings release by
revenue recognition and
strategy change reflected in financial performance for
war chests and
Asahi Breweries
Asset age ratios
Asset base composition (Nestlé case study)
Assets
cash as
contingent
current
determining the tax base of
disposal of
evaluation of
explanation of
financial
impairment of
indemnification
intangible
long-lived (see Long-lived assets)
manipulation of
measurement of
net operating
noncurrent
revaluation of
securitization of
tangible
temporary differences at initial recognition of
Asset utilization ratios. See Activity ratios
Associates, investments in
Audit committees
Audit opinions
explanation of
on internal control systems
types of
Auditor’s report
example of
explanation of
Audits
external
internal
international standards for
Available-for-sale investments
explanation of
fair value decline of
impaired
Back-testing
Baidu
Balance-sheet-based accruals ratio
Balance-sheet-based aggregate accruals
Balance sheet exposure
net asset
net liability
temporal method and
to translation adjustment
Balance sheet ratios
Balance sheets
cash flow statements and
classified
common-size analysis of
components of
current and noncurrent classification on
current assets on
current liabilities on
defined benefit plans on
equation for
equity on
examples of
explanation of
foreign currency transactions on
function of
goodwill on
indirect method of cash flow statement and
inflation-adjusted
International Financial Reporting Standards requirements for
liquidity-based presentation on
noncontrolling interest on
noncurrent assets on
noncurrent liabilities on
off-balance-sheet liabilities and
ratio analysis of
unclassified
warning signs of issues in
Bank regulation
Bargain acquisitions
Barter
Basel Accords
Basel Committee on Banking Supervision
BASF AG
Basic earnings per share
explanation of
on income statement
B+H Ocean Carriers
BHP Billiton (BHP)
Bias, back-testing and
Bill-and-hold sales
BMW AG
Board of directors
Bonds
explanation of
face value of
issued at discount
market value of
zero-coupon
Bonds payable
bond amortization, interest expense, and interest payments and
bond issuance and
current market rates and fair value reporting option and
debt covenants and
debt derecognition and
explanation of
long-term debt presentation and disclosure and
Book value, investment costs that exceed
Bottom-up analysis
Branches, investments in
Business activity classification
Business and geographic segments
reporting requirements and
segment ratios and
Business combinations
accounting for
acquisition method for
comparability impairment and
on consolidated financial statements
deferred taxes and
explanation of
financial statement presentation subsequent to
intangible assets acquired in
pooling of interests accounting method for
types of
Canon
Capital allocation (Nestlé case study)
Capitalization
of borrowing costs
expensing vs.
explanation of
of interest costs
of ongoing purchases
of software development costs
Capital leases
Capital markets
financial information influencing
operating income and
regulation of European
Capital One
Capital structure
analysis of
explanation of
Carpenter Technology Corporation
Carrying amount
of asset
explanation of
Case studies
anticipating effects of changes in accounting standards
long-term equity investment
off-balance-sheet leverage from operating leases
Cash
on balance sheet
evaluation of sources and uses of
explanation of
paid for income taxes
paid for interest
paid for other operating expenses
paid to employees
paid to suppliers
received from customers
from sale of equipment
Cash basis accounting
accrual basis vs.
explanation of
Cash conversion cycle
Cash equivalents
Cash flow ratios
Cash flows
analysis of
classification of
converted from indirect method to direct method
direct method to report
explanation of
free
illustration of profit vs.
indirect method to report
from investing activities
from operating activities
of pension and other postemployment benefits
Cash flow statement analysis
case study of
cash flow ratios and
common-size
evaluation of sources and uses of cash and
free cash flow to firm and to equity and
Cash-flow-statement-based accruals ratio
Cash-flow-statement-based aggregate accruals
Cash flow statements
classification issues for
direct method for
direct method under IFRS standards
example of
explanation of
financing activities on
function of
IFRS vs. GAAP requirements for
income statements and balance sheets and
indirect method for
indirect method under IFRS standards
investing activities on
omitted investing and financing activities and
operating activities on
prepared under GAAP
real earnings management activity and
steps to prepare
Cash ratio
Caterpillar Inc. (CAT)
CFA Institute
evolving standards and role of
Standards of Practice Handbook (SOPH)
Charles Schwab Corporation
Chart of accounts
Chevron Corporation
China Construction Bank
China Petroleum & Chemical Corporation
Cisco Systems
Class action lawsuits
Classified balance sheets
Clean-surplus accounting
CNH Global N.V.
Coca-Cola, Inc.
Commercial receivables. See Accounts receivable
Committee of European Securities Regulators (CESR)
Common shares. See Common stock
Common-size analysis
of balance sheets
of cash flow statements
cross-sectional
explanation of
of income statements
relationships among financial statements
trend
Common stock
change in
explanation of
Company disclosures
regarding changes in accounting policies
relating to critical and significant accounting policies
Completed contract method
A Comprehensive Business Reporting Model: Financial Reporting for Investors (CFA Institute)
Comprehensive income
explanation of
in income statement
other
total
Comprehensiveness
Conceptual framework
barriers to
convergence of
Conceptual Framework for Financial Reporting 2010 (International Accounting Standards Board)
function of
objectives of
usefulness of financial information and
Consistency
Consolidated financial statements
business combination with less that 100% acquisition and
explanation of
goodwill impairment and
noncontrolling interests and
Consolidations
Contingent assets
Contingent consideration
Contingent liabilities
Contra account
Contracts, accounting information in
Contributed capital
Convertible debt
Convertible debt outstanding
Convertible preferred stock
Corning, Inc.
Corporate earnings announcements
Cost flow assumption
Cost formulas
Cost method, depreciation in
Cost model, for investment property
Cost of goods sold (COGS)
Cost of sales
explanation of
inventory valuation method and
Cost recovery method
Coupon rate
Coverage ratios
CRA International, income statement for
Credit, in accounting context
Credit analysis
credit rating process and
explanation of
financial position and
function of
quantitative factors in
ratio comparison and
research on ratios in
Standard & Poor’s and
Credit rating agencies
Credit risk
accounts receivable and
assessment of
explanation of
Credit scoring
Cross-sectional analysis
for balance sheets
explanation of
of past financial performance
relationship between financial statements and
Current assets
on balance sheet
explanation of
Current cost
Current exchange rate
assets and liabilities translated at
explanation of
Current liabilities
accounts payable as
accrued expenses as
deferred revenue as
explanation of
income taxes payable as
notes payable as
Current rate method
explanation of
temporal method used with
Current ratio
Current tax assets
Current tax liabilities
Customers, cash received from
DaimlerChrysler
Data collection
Data processing
Data-snooping bias
Days of inventory on hand (DOH)
Days’ sales outstanding (DSO)
Debit, in accounting context
Debit/credit accounting system
Debt
derecognition of
long-term
off-balance-sheet
with warrants
Debt covenants
Debt securities
accounting for investments in
explanation of
reclassification of
Debt-to-assets ratio
Debt-to-capital ratio
Debt-to-equity ratio
Deductible temporary differences
examples of
explanation of
Defensive interval ratio
Deferred income. See Deferred revenue
Deferred revenue
analysis of
explanation of
Deferred tax assets
assessment of
creation of
explanation of
recognition of
Deferred tax liabilities
charged directly to equity
creation of
explanation of
recognition of
Defined benefit plans
balance sheet presentation of
change in assumptions and
explanation of
measuring obligations of
pension liability for
projected unit credit method to calculate
underlying economic expense of
vesting and
Defined contribution plans
accounting treatment of
explanation of
vesting and
Dell Inc.
analysis of cash flow statement of
cash flow analysis of comparables of
cross-sectional common-size analysis of
evaluation of liquidity measures for
Depletion
Depreciation
accelerated methods of
accumulated
amortization and
analyst adjustments to
cash flow statement and
diminished balance method of
double declining balance
equipment
explanation of
on income statements
of long-lived assets
methods to calculate
of property, plant, and equipment
in revaluation model
straight-line method of
units-of-production method of
Derecognition
of debt
explanation of
Derivatives
Deutsche Bank
Diebold, Inc. (DBD)
Diluted earnings per share (EPS)
antidilutive securities and
explanation of
on income statement
treasury stock method to calculate
when company has convertible debt outstanding
when company has convertible preferred stock outstanding
when company has stock options, warrants, or equivalents outstanding
Diluted shares
Diminished balance depreciation method
Direct financing leases
Direct method
cash flow conversion from indirect method to
for cash flow statement
for cash flow statements under GAAP standards
for cash flow statements under IFRS standards
to report cash flow from operating activities
Direct write-off method
Dirty-surplus accounting
Dirty-surplus items
Disclosures
of changes in accounting policies
of critical and significant accounting policies
of debt covenant
of debt extinguishment
of depreciation and amortization
of equity method investments
of foreign currency financial statement translation
of foreign currency transaction gains and losses
of goodwill
of income tax related information
of inventory
of leases by lessee
of long-lived assets
of long-term debt
of pension plans and other postemployment benefits
of stock options
Discontinued operations, on income statement
Discount rate
to estimate pension obligations
explanation of
Discover Financial Services (DFS)
Dividend payout ratio
Dividends, on cash flow statements
Double declining balance depreciation
Double-entry accounting
Doubtful accounts
Downstream transactions
Dreamworks Animation SKG
DuPont analysis. See also Return on equity (ROE)
explanation of
for Nestlé case study
Earnings
accrual component of
manipulation in reporting of
mean reversion in
operating
persistence of
retained
reverting property of
smoothed
Earnings before interest and taxes (EBIT)
Earnings expectations management
Earnings game
Earnings management activity
Earnings per share (EPS)
basic
changes in
diluted
explanation of
formula for
interpretation of
simple vs. complex capital structure and
Earnings quality
analysis of
applying simple measures of
company comparison of
explanation of
measures of accrual component of earnings and
reporting of
Economic goodwill
EDGAR system (Securities and Exchange Commission)
Effective interest rate
Electrolux AB
Employee compensation. See also Pension plans/postemployment benefits
Employee Retirement and Income Security Act (ERISA)
Employees, cash paid to
Equipment
cash from sale of
depreciation of
Equity
components of
evaluation of
explanation of
recognition of current and deferred tax charged directly to
return on
statement of changes in
Equity analysis
explanation of
financial statements as foundation for
income statements and
industry-specific ratios and
research on ratios in
valuation ratios and
Equity method of accounting
challenges of
disclosures for
explanation of
at fair value
with goodwill
for impairment
with sale of inventory
Equity securities
Europe, capital markets regulation in
European Commission
European Financial Reporting Advisory Group
European Securities and Market Authority (ESMA)
European Securities Committee (ESC)
European Union (EU), capital market regulation by
Exercise date, stock option
Expenditures, capitalizing vs. expensing
Expense recognition
deferred expenses and
depreciation and amortization and
doubtful accounts and
financial analysis implications of
general principles of
for information service provider
warranties and
Expenses
accrual basis accounting and
accrued
classification of ordinary expenses as nonrecurring or nonoperating
deferring
explanation of
on income statement
prepaid
understated
warning signs of issues in reported
Expensing, capitalizing vs.
Exposure to foreign exchange risk
External auditors
Extraordinary items, on income statement
Exxon Mobil Corporation
Face value, of bonds
Fair value
of assets and liabilities acquired in business combination
of bonds
equity method of accounting at
explanation of
for investment property
investments designated at
Fair value reporting
Faithful representation of financial information
FASB. See Financial Accounting Standards Board (FASB)
FASB Accounting Standards Codification
FASB ASC Topic 323
FASB Interpretation 46, Revised (FIN 46R)
Fiat S.p.A.
FIFO (first in, first out) method
adjustment for a company using
conversion to, from last in, first out
exchange rates and
explanation of
inventories and
Finance leases. See also Leases/leasing
accounting of
explanation of
impact for lessee
impact for lessor
operating leases treated as
operating vs.
Financial Accounting Foundation
Financial Accounting Standards Board (FASB)
anticipating changes in accounting standards of
on convergence of standards
evolving standards and
explanation of
on fair value accounting
on financial reporting standards
on intercorporate investments
on special purpose entities
Financial analysis. See also Financial statement analysis
of accounting choices
articulating purpose and context of
computations vs.
depreciation and amortization and
financial notes and
function of
information sources for
model building and forecasting as
objectives of
revenue recognition policies and
segment ratios for
segment reporting requirements for
Financial analysis case studies
in anticipating effects of changes in accounting standards
in long-term equity investment
in off-balance sheet leverage from operating leases
Financial analysis techniques. See also specific techniques
business and geographic segments and
common-size analysis as
credit analysis as
equity analysis as
graphs as
model building and forecasting and
overview of
ratios as
regression analysis as
Financial asset investments
available-for-sale
designated at fair market
held for trading
held-to-maturity
impaired
overview of
reclassification of
Financial assets
accounting treatment for
explanation of
measurement of
Financial leverage
Financial leverage ratio
Financial notes
Financial performance
evaluation of
example of strategy change reflected in
function of projecting
input to market-based valuation to project
projecting multiple-period
Financial position, evaluation of
Financial reporting
accounting standards boards and
barriers to single coherent framework for
characteristics of effective
classification of business activities for
constraints on
disclosures in
discretion in
estimates in
function of
manipulation of information in
mechanisms curtailing abuse in
objective of
qualitative characteristics of
quality warning signs in
regulatory authorities and
supplementary information for
Financial reporting quality. See also Earnings quality
accrual component of earnings and
balance sheet issues and
cash flow statement issues and
earnings quality and
expense recognition issues and
explanation of
fair value reporting for
framework to quantify
mean reversion in earnings and
revenue recognition issues and
Financial reporting standards
comparison of IFRS with alternative reporting systems and
convergence of global
framework for international
function of
monitoring developments in
Financial Services Agency (Japan)
Financial Services Authority (FSA) (U.K.)
Financial statement analysis. See also Financial analysis
analyst adjustments to reported financials and
to assess credit risk
to evaluate past financial performance
framework for
function of
misrepresentations and
to project future financial performance
reports and supplementary information for
reverting property of earnings and
scope of
to screen for potential equity investments
Financial statement analysis framework
Financial statements. See also specific financial statements
auditor’s report
certification of
consolidated
elements in
financial notes and supplementary schedules for
function of
general requirements for
inflation-adjusted
manipulation of information on
measurement of assets and liabilities in
relationships among
subsequent to business combination
supplementary information for
types of
underlying assumptions in
used in security analysis
Financing activities
on cash flow statements
determining cash flows from
explanation of
First in, first out (FIFO) method. See FIFO (first in, first out) method
Fixed asset turnover ratio
Fixed-charge coverage ratio
Fixed costs
Fixed-income analysis
Footnotes, financial
Ford Motor Company
Forecasting
consistency in
errors in
example of
future operating profits
principles of
Foreign currency financial statement translation
analytical issues in
conceptual issues in
disclosures related to
functional currency approach to
highly inflationary economies and
illustration of methods of
methods of
retained earnings and
using both methods at same time
when foreign subsidiary operates in hyperinflationary economy
Foreign currency transactions
disclosing gains and losses in
explanation of
with exposure to foreign exchange risk
with intervening balance sheet date
reporting of gains and losses in
with settlement before balance sheet date
Foreign exchange rates
Foreign exchange risk exposure. See also Foreign currency transactions
Foreign subsidiaries
explanation of
financial statements of
operating in hyperinflationary economy
Framework for the Preparation and Presentation of Financial Statements (IASB)
Free cash flow
Free cash flow to equity (FCFE)
Free cash flow to firm (FCFF)
Functional currency
explanation of
factors considered in determining
foreign currency as
illustration of
parent’s presentation currency as
GAAP. See Generally accepted accounting principles (U.S. GAAP)
Gains
in foreign currency transactions
on income statements
net income and
warning signs of issues in reported
General Electric (GE)
General ledger
Generally accepted accounting principles (U.S. GAAP)
on accounting policy changes
on balance sheet requirements
on bonds
on business combinations
on cash flow statement requirements
comparison of IFRS and
on comprehensive income
on convergence of standards
on depreciation
on disclosure
on earnings reporting
explanation of
on financial assets
on foreign currency financial statements and transactions
on goodwill
on impaired assets
on income statement requirements
on intangible assets
on intercorporate investments
on interest expenditures
on inventories
on investment property
on investments in associates
on joint ventures
on leases
on long-lived assets
on pensions and other postemployment benefits
on reconciliation requirement
on revaluation model
on stockholders’ equity
on taxes
on treasury stock method
General Motors
German Federal Financial Supervisory Authority
GlaxoSmithKline
Going concern
Goodwill
accounting
analyst adjustments related to
economic
explanation of
impairment of
measurement of
ratio comparisons for
recognition of
value assigned to
Grant date, stock option
Graphs
Gross margin
Gross profit
explanation of
inventory valuation method and
Gross profit margin
explanation of
inventory and
Gross reporting approach
Group Danone
cash flow statement for
income statement for
Grouping by function
Grouping by nature
Growth investors
Health care costs, assumptions about trends in
Heineken NV
Held-for-trading investments
Held-to-maturity investments
Hewlett-Packard Co.
cash flow analysis of comparables
cross-sectional common-size analysis of
Highly inflationary economies, foreign currency translation in
Historical cost
Historical exchange rates
explanation of
stockholders’ equity accounts translated at
Horizontal analysis
Hurricane Katrina (2005)
Hurricane Rita (2005)
IASB. See International Accounting Standards Board (IASB)
IAS No. 1, Presentation of Financial Statements
IAS No. 12
IAS No. 21
IAS No. 27
IAS No. 28
IAS No. 29
IAS No. 31
IAS No. 36
IAS No. 39
Identifiable intangibles
If-converted method
IFRS. See International Financial Reporting Standards (IFRS)
IFRS Foundation
IFRS No. 3
Impairments
equity method of accounting for
explanation of
of financial assets
goodwill
of intangible assets
of long-lived assets
of property, plant, and equipment
reversals of
InBev
Income
comprehensive
explanation of
net
taxable (see also Income taxes)
Income statement ratios
Income statements
accounting policy changes and
analysis of
basic equation underlying the
cash flow statements and
common-size analysis of
components and format of
components of
comprehensive income on
defined benefit plans on
discontinued operations on
earnings per share on
equation for
example of
expense recognition on
explanation of
extraordinary items on
function of
inflation-adjusted
multistep format for
noncontrolling interest on
nonoperating items on
presentation of information on
reporting income on
revenue recognition on
single-step format for
unusual or infrequent items on
Income taxes
accounting profit vs. taxable income and
cash paid for
change in rates of
IFRS vs. U.S. GAAP requirements and
overview of
presentation and disclosure of
taxable profit vs. accounting profit and
tax base of assets and
tax base of liabilities and
unused tax losses and tax credits and
Income tax paid
Income tax payable
Indemnification assets
Indirect method
balance sheet changes and
cash flow conversion to direct method from
for cash flow statements
for cash flow statements under GAAP standards
for cash flow statements under IFRS standards
Industry-specific ratios
Infrequent items, on income statement
In-process research and development (R&D)
Installment method
Installment sales
Intangible assets
acquired in business combination
developed internally
explanation of
goodwill as
long-lived assets as
measurement of
purchased in situations other than business combinations
Integrated financial ratio analysis
decomposition of ROE and
explanation of
illustration of
Intercorporate investments
accounting standards for
in associates
in business combinations
categories for
explanation of
in financial assets
in joint ventures
variable interest and special purpose entities
Interest
accrued
capitalization of
on cash flow statements
cash paid for
coupon rate of
effective rate of
market rate of
Interest coverage ratios
Interim reports
Internal auditors
International Accounting Standards Board (IASB)
anticipating changes in accounting standards of
Conceptual Framework for Financial Reporting 2010
on convergence of global standards
evolving standards and
on expenses
on fair value accounting
on general requirements for financial statements
on income statements
on intercorporate investments
management commentary and
on special purpose entities
International Accounting Standards Committee (IASC)
International Financial Reporting Standards (IFRS)
alternative reporting systems vs.
on balance sheet requirements
on bonds
on business combinations
on cash flow statement requirements
on comparison of U.S. GAAP
on comprehensive income
on convergence of standards
on depreciation requirements
on diluted earnings per share
on disclosure
on earnings reporting
on financial assets
on foreign currency financial statements and transactions
general features of
on goodwill
on impaired assets
on income statements requirements
on intangible assets
on interest expenditures
on inventories
on investment property
on investments in associates
on joint ventures
on leases
on long-lived assets
on pensions and other postemployment benefits
on percentage-of-completion method
on procedure for new standards
on reconciliation requirement
on revaluation model
on statement of changes in equity
statement of compliance with
on statement of comprehensive income
on taxes
International Financial Reporting Standards (IFRS) Framework
constraints on financial reports and
objective of financial reports and
overview of
for preparation and presentation of financial reports
qualitative characteristics of financial reports and
International Organization of Securities Commissions (IOSCO)
function of
management report and
International Paper Company
International standards for auditing (ISAs)
Inventories
adjustments to
analysis of
analyst adjustments related to
costing methods for
cost of
equity method of accounting with sale of
exchange rates and
explanation of
overview of
turnover of
Inventory management evaluation
illustrations of
inventory ratios for
presentation and disclosure and
Inventory systems, periodic vs. perpetual
Inventory turnover ratio
Inventory valuation methods
calculation of cost of sales, gross profit, and ending inventory
changes in
comparison of
effect of choice of
first in, first out
function of
last in, first out
periodic vs. perpetual
specific identification
weighted average cost
Investing activities
on cash flow statements
explanation of
Investment Advisers, Ltd. (IAL) (example)
simple accounting system
T-accounts
Investment property
explanation of
methods to value
Investments. See also Intercorporate investments; specific investments
accounting treatments for
analyst adjustments related to
in business combinations
categories of
in financial assets
in joint ventures
reclassification of
in variable interest and special purpose entities
Investments in associates
amortization of excess purchase price and
analysis issues with
disclosure and
equity method of accounting and
explanation of
fair value option and
impairment and
investment costs exceeding book value of investee and
transactions and
Investors
J.M. Smucker Company
Johnson & Johnson (JNJ)
Jointly controlled assets
Jointly controlled entities
Jointly controlled operations
Joint ventures
financial statements for
function of
investments in
types of
Journal entries
Kahn Distribution Limited (KDL)
Kolenda Technology Group
Koninklijke KPN N.V.
Kraft Foods
income statement for
profitability of
Last in, first out (LIFO) method. See LIFO (last in, first out) method
Leases/leasing
advantages of
direct financing
explanation of
finance vs. operating
lease vs. buy decision and
off-balance-sheet financing and
sales-type leases
synthetic
Ledger
Lenovo Group Limited
Lessees
accounting and reporting by
explanation of
financial statement disclosure of leases by
financial statement impact of finance vs. operating lease by
financial statement impact of treating operating leases as finance leases for
Lessors
accounting and reporting by
explanation of
financial statement impact of direct financing lease vs. operating lease for
financial statement impact of sales-type lease for
Leverage ratios
Liabilities. See also Noncurrent liabilities
contingent
current
determining the tax base of
evaluation of
explanation of
measurement of
temporary differences at initial recognition of
LIFO (last in, first out) method
adjustment for a company using
conversion to first in, first out from
exchange rates and
explanation of
for inventories
liquidations
reserve
Line graphs
Liquidations, LIFO
Liquidity
evaluation of
explanation of
level of needed
Liquidity-based presentation
Liquidity ratios
calculation of
definitions of commonly used
evaluation of
explanation of
interpretation of
LM Ericsson Telephone Company
Local currency
Long-lived assets
acquisition of
amortization of
capitalization of interest costs of
capitalization of internal development costs of
capitalizing vs. expensing of
depreciation of
disposal of
disposed of other than by sale
explanation of
impairment of
as intangible assets
investment property as
leasing and (see also Leases/leasing)
presentation and disclosure of
property, plant, and equipment as
revaluation model to report
sale of
Long-term contracts
explanation of
revenue recognition in
Long-term debt
change in
disclosure of
Long-term equity investment (case study)
accruals and earnings quality and
asset base composition and
capital structure analysis for
cash flow relationships and
conclusions and recommendations for
data processing, analyzing and interpreting for
decomposition and analysis of company’s valuation and
defining purpose for analysis of
DuPont analysis for
follow-up for
input data collection and
segment analysis and capital allocation and
Long-term liabilities. See Noncurrent liabilities
Look-ahead bias
Losses
in foreign currency transactions
on income statements
net income and
warning signs of issues in reported
Management’s discussion and analysis (MD&A)
disclosures and
explanation of
inventories and
Management report
Marketable securities
Market-based valuation
Market-oriented investors
Market rate of interest
Mark-to-market
Mark-to-market inventory accounting
Matching principle
explanation of
warranties and
Materiality
Matsushita Electric Industrial Co., Ltd.
McLeod Russel India Ltd.
Mean reversion in earnings
Measurement
of assets and liabilities
variations in approaches to
Mergers
Micron Technology, Inc.
Microsoft Corporation
Microstrategy
Minority interests
Model building
Monetary/nonmonetary method
Moody’s Investors Service
MTR Gaming Group
Multinational operations
foreign currency financial statement translation in (see also Foreign currency financial statement translation)
foreign currency transactions in (see also Foreign currency transactions)
overview of
Nestlé Group
Nestlé SA. See also Long-term equity investment (case study)
Net asset balance sheet exposure
Netflix
Net income
cash flow statements and
explanation of
as percentage of revenue
Net liability balance sheet exposure
Net operating assets (NOA)
Net profit margin
calculation of
explanation of
Net realizable value (NRV)
Net reporting approach
Net revenue
New Era Network Associates
New products
Nokia Corporation
Noncontrolling interest
balance sheet and
explanation of
income statement and
Noncurrent assets
explanation of
financial assets as
goodwill as
identifiable intangibles as
intangible assets as
investment property as
property, plant, and equipment as
Noncurrent liabilities
on balance sheets
bonds payable as (see also Bonds payable)
deferred tax liabilities as
explanation of
leases as (see also Leases/leasing)
long-term financial liabilities as
pensions and other postemployment benefits as
solvency evaluation and
types of
Nonoperating items
Norwalk Agreement
Notes payable
NOVA Chemicals Corporation
Novartis Group
Novo Nordisk
Number of days of payables
Objectives and Principles of Securities Regulation (International Organization of Securities Commissions)
Off-balance-sheet financing
Off-balance sheet leverage from operating leases (case study)
Off-balance-sheet liabilities
Office of the Comptroller of the Currency
Office of the Superintendent of Financial Institutions (Canada)
Operating activities
direct method to report cash flow from
explanation of
indirect method to report cash flow from
reporting cash flow from
Operating efficiency ratios. See Activity ratios
Operating expenses
Operating income. See Operating profit
Operating leases. See also Leases/leasing
accounting rules for
explanation of
finance leases vs.
impact for lessee
impact for lessor
off-balance sheet financing from
treated as finance leases
Operating leverage
Operating profit
Operating profit margins
explanation of
forecasting future operating profits from historical
Operating return on assets (ROA)
Ordinary shareholders
Ordinary shares
Orthodontic Centers of America
Other comprehensive income (OCI)
Other current assets
Other postemployment benefits (OPB). See also Pension plans/postemployment benefits
Other receivables. See Accounts receivable
Owners’ equity
explanation of
nonowner changes in
terms used to denote
Parent’s presentation currency
Partners’ capital. See Owners’ equity
Past service costs (PSC)
Payables turnover
Pension obligation
Pension plans/postemployment benefits. See also Defined benefit plans; Defined contribution plans
accounting and reporting of
assumptions about trends in
cash flow impact of
defined benefit
defined contribution
disclosure of
financial statement reporting of
pension liability for
share-based compensation as
types of
underlying economic expense of
Percentage-of-completion method
example of
explanation of
Period costs
Periodic inventory system
Permanent differences
explanation of
between taxable and accounting profit
Perpetual inventory system
Phantom stock
Pie graphs
Postemployment benefits. See Pension plans/postemployment benefits
Preferred shareholders
Preferred shares
Preferred stock, convertible
Prepaid expenses
Prepaid rent
Presentation currency
Present value
Present value of defined benefit obligation (PVDBO)
Press releases
Pretax margin
Price to book value (P/B)
Price to cash flow
Price-to-earnings (P/E) ratio
Price-to-sales (P/S) ratio
Profit
gross
illustration of cash flow vs.
operating
Profitability
evaluation of
explanation of
ratio analysis and
Profitability ratios
calculation of
definitions of commonly used
evaluation of
function of
interpretation of
Profit and loss (P&L) statement. See Income statements
Profit margins
explanation of
gross
net
operating
Projected unit credit method, to calculate defined benefit plans
Projections of future financial performance
historical operating profit margins and
input to market-based valuation and
issues in
overview of
Property, plant, and equipment (PPE)
acquisition of
analyst adjustments related to
explanation of
impairment of
as long-lived asset
presentation of
Proportionate consolidation
Proxy statements
Public Company Accounting Oversight Board (PCAOB)
Publicis Groupe
Publicly traded companies
Purchased in-process research and development
Purchasing power loss/gain
Qualifying special purpose entity (QSPE)
Quick ratio
Ratio analysis
of balance sheets
example of
explanation of
integrated
limitations of
value of
Ratios
activity
asset age
balance sheet
balance-sheet-based accruals
cash flow
cash-flow-statement-based accruals
categories of financial
to compare goodwill
effect of inventory write-downs on
fixed asset turnover
industry- and task-specific
interest coverage
interpretation of
inventory
inventory turnover
liquidity
methods to compute
peer comparison of
price-to-earnings
price-to-sales
profitability
return on assets
to screen for potential equity investments
segment
solvency
sources of
valuation
Realizable (settlement) value
Receivables
Receivables turnover
Recognition
Reconciliation requirement, Securities and Exchange Commission
Regression analysis
Regulation, industry-specific
Regulatory authorities
for European capital markets
explanation of
international
U.S.
Relative analysis. See Cross-sectional analysis
Relevance, of financial information
Research and development (R&D)
expenditures on
in-process
Residual claim
Restructuring costs
Retail method
Retained cash flow (RCF)
Retained earnings
explanation of
foreign currency translation and
statement of (see also Statement of retained earnings)
Retention rate
Retirement benefits. See also Pension plans/postemployment benefits
Retrospective application
Return on assets (ROA)
accounting method and
explanation of
Return on common equity
Return on equity (ROE)
decomposition of
effect of differences in accounting standards on
explanation of
Return on investment profitability ratios
Return on net operating assets (RNOA)
Return on sales
Return on total capital
Revaluation model
depreciation in
explanation of
Revenue
accrual basis accounting and
classifying nonrecurring or nonoperating revenue as operating
deferred
detecting problems in reported
explanation of
gross vs. net reporting of
on income statement
misstatement of
net
unbilled
unearned
warning signs of issues in reported
Revenue recognition
accounting discretion and
accounting policy changes and
in barter transactions
bill-and-hold sales and
explanation of
financial analysis implications for
general principles of
in gross vs. net reporting
in installment sales
in long-term contracts
in special cases
Roche Group
Royal Dutch Shell
SABMiller plc
Safeway, Inc.
Sales forecasts, development of
Sales returns and allowances
Sales-type leases
explanation of
impact for lessor
Salvage value
SAP Group, balance sheet of
Sarbanes-Oxley Act of 2002
Scenario analysis
Screens
back-testing and
example of stock
explanation of
for potential equity investments
ratio-based
Sector neutralizing
Securities Act of 1933
Securities and Exchange Commission (SEC)
accruals and
annual report
convergence of global standards and
Form 6-K
Form 8-K
Form 10-K
Form 10-Q
Form 11-K
Form 20-F
Form 40-F
Form 144
Forms 3, 4, and 5
forms and statements issued by
function of
management report and
MD&A and
on off-balance-sheet financing
proxy statement/form DEF-14A
reconciliation requirement and
revenue and
Securities Exchange Act of 1934
Security analysis, use of financial statements for
Segment analysis (Nestlé case study)
Self-regulatory organizations (SROs)
Selling, general, and administrative (SG&A)
Sensitivity analysis
Service period, stock option
SFAS No. 52
SFAS No. 109
SFAS No. 140
SFAS No. 141
SFAS No. 141(R)
SFAS No. 142
SFAS No. 157
SFAS No. 160
Share-based compensation
cash-settled
explanation of
forms of
stock grants as
stock options as
Shareholders
Shareholders’ equity. See Owners’ equity
Siemens AG
Simulation
Smoothed earnings
Software development costs
Solvency
evaluation of
explanation of
Solvency ratios
calculation of
definition of commonly used
evaluation of
explanation of
interpretation of
Special purpose entities (SPEs)
consolidated vs. nonconsolidated securitization transactions and
explanation of
for leased asset
qualifying
securitization of assets and
Special purpose vehicle
Specific identification method
explanation of
use of
S&P/MSCI Global Industrial Classification System (GICS)
Spreadsheet approach, basic accounting system as
Staff Accounting Bulletins (Securities and Exchange Commission)
Standard cost
Standard & Poor’s
credit ratios used by
EBIT interest coverage ratio and
Standard-setting approaches
Standard-setting bodies
Standards of Practice Handbook (SOPH) (CFA Institute)
Statement of cash flows. See Cash flow statements
Statement of changes in equity
Statement of comprehensive income
Statement of earnings. See Income statements
Statement of financial condition. See Balance sheets
Statement of financial position. See Balance sheets
Statement of income. See Income statements
Statement of operations. See Income statements
Statement of owners’ equity
Statement of retained earnings
equation for
explanation of
Statement of stockholders’ equity
Stelle Technology
Stock appreciation rights (SARs)
Stock grants
Stockholders’ equity. See Owners’ equity
Stock options
diluted earnings per share and
disclosure of
explanation of
Straight-line method of depreciation
Sturm Ruger & Co.
Subscription accounting
Subsidiaries, investments in
Sunbeam
Supplemental schedules
Suppliers, cash paid to
Survivorship bias
Sustainable growth rate
Syngenta
Synthetic leases
T-accounts
explanation of
use of
Tangible assets, long-lived
Taxable income
differences between accounting profit and
example of determination of
explanation of
Taxable temporary differences
examples of
explanation of
Tax assets
current
deferred
Tax base
of asset
explanation of
of liability
Taxes. See Income taxes
Tax expense
Tax liabilities
current
deferred
Tax loss carry forward
Tech Data Corporation, cash flow statement for
Technical Practice Aid 5400.05 (American Institute of Certified Public Accountants)
Teck Resources Ltd.
Telefónica Group
Teléfonos de México
Tele Norte Leste Participações S.A.
Temporal method
effect of
explanation of
impacts of balance sheet exposures under
used with current rate method
use of
Temporary differences
business combinations and deferred taxes and
deductible
at initial recognition of assets and liabilities
investments in subsidiaries, branches, associates, and interests in joint ventures and
taxable
Textron Inc.
Thomson Corporation
Timeliness
Time series analysis
Tolerance-for-leverage measures
Top-down analysis
TORM A/S
Toshiba Corporation
Total asset turnover
Total comprehensive income
Total invested capital
Trade receivables. See Accounts receivable
Trading securities
Transaction exposure. See also Foreign currency transactions
Transparency
Treasury shares
Treasury stock method
Trend analysis
Trial balance
Unbilled revenue
Unclassified balance sheet
Understandability
Unearned fees
Unearned revenue
Unilever Group
Uniting of interests
Units-of-production method of depreciation
Unusual items, on income statement
UPM-Kymmene Corporation (UPM)
Upstream transactions
Valuation
adjustments to
approaches to
decomposition and analysis of company
market-based
Valuation allowance
Valuation ratios
calculation of
definition of selected
dividend-related quantities and
explanation of
interpretation of earnings per share and
Value investors
Variable costs
Variable interest entity (VIE)
Verifiability
Verizon Communications Inc.
Vertical analysis
Vested benefit obligation
Vesting
Vesting date, stock option
Vodafone Group, PLC
Volkswagen Group
balance sheet of
cash flow statement
financial notes in financial statements of
income statement of
independent audit report
management report
statement of changes in equity
statement of comprehensive income
Volvo Group
Walmart
consolidated balance sheet
War chest
Warranties
Warrants
Weighted average cost method
explanation of
inventories and
Weighted average exchange rate
Working capital
cash flow statements and
explanation of
Working capital turnover
WorldCom
XBRL (eXtensible Business Reporting Language)
Yahoo! Inc.
Zero-coupon bonds