FIN 202 Lecture 1: UFAS-PresentationOfFS

9 views6 pages

angelodelacruz461

29 Apr 2022

School

DePaul University

Department

Finance

Course

FIN 202

Professor

For unlimited access to Class Notes, a Class+ subscription is required.

Document Summary

Iass apply only to the financial statements and not to other information presented in the annual report. Financial statements must be presented at least annually. To explain the bases for the presentation of. Ias 1 states that an entity should be in a position to general purpose financial statements issue financial statements within 6 months from the. Ias 1 sets out the overall considerations for the presentation of financial statements, Present fairly the financial position, balance sheet date. The following information must also be clear: the name of the reporting entity. Whether the financial statements cover individual financial statements or consolidated financial statements, the balance sheet date, or period of reporting, reporting currency, and level of precision of financial statement figures performance and cash flow (e. g. , millions). And to be prepared on an accrual and going concern basis. It must be applied for all financial statements prepared. The overall factors included in ias 1 are: in accordance with ias.

Related Questions

Objective: To analyze the financial statements of a publicly traded company Obtain an annual report from a publicly traded corporation that is interesting to you. Be sure the companyâs financial statements include deferred taxes, post-retirement benefits, dilutive securities, and share-based compensation. Using techniques you have learned in the previous weeks, respond to the following questions. What amount of deferred tax assets or deferred tax liabilities are on the two most recent years on the balance sheet? What gives rise to these deferred taxes? What information is disclosed in the footnotes related to deferred taxes? Please define a deferred tax asset and deferred tax liability. What temporary and permanent differences does the company disclose in their footnotes? What are some other examples of temporary and permanent differences? What is the amount of income tax provision in the two most recent years on the income statement? What information is disclosed in the footnotes relating to income tax expense? Does the company have a net operating loss carry-forward or carry-back? What are the guidelines for carry-forwards and carry-backs? Does the company have a defined benefit or defined contribution plan? What are the key elements of the plan discussed in the footnotes? What amounts on the balance sheet relate to this plan? What are the differences between defined benefit and defined contribution plans? What are the earnings per share amounts disclosed on the income statement for the most recent year? What dilutive securities are discussed in the footnotes? Please identify and describe other examples of dilutive securities. How do these impact earnings per share? What kind of share-based compensation does the company have? What was compensation expense for the two most recent years? What are the key elements of this plan discussed in the footnotes? Please identify and describe other types of share-based compensation. Does the company use the direct or indirect cash flow presentation method? What is the difference between these two methods? How does the cash flow statement agree to the other financial statements? What investing and financing activities does the company have? What are some other examples of investing and financing activities? What noncash transactions does the company have on its cash flow statement? What are some other examples of noncash transactions? Guidelines Back to Top Papers must be 7â10 pages in length, double-spaced, and with 12-point font. Include a cover page, table of contents, introduction, report body, summary or conclusion, and works cited. Even though this is not a scientific-type writing assignment, references are still very important. At least three authoritative, outside references are required (anonymous authors or web pages are not acceptable). These should be listed on the last page titled Works Cited. Appropriate citations are required.

Book: Financial management

1. Review the requirements of the Chapter 3 Mini-Case, parts b through j. Then apply those requirements to do an analysis of Brinker International, which is a real company. Don't complete the minicase itself, just Brinker. Do the analysis on the basis of the figures for the most recent year. For part g, use the 2 most recent years. Download 10K financial statements for the most recent year for Brinker. A good source is the company's home page. Also compare the Brinker ratios to the industry averages and commend on significant differences. You'll note that some of the company's ratios you calculate won't agree with those found on the web page. Ratios are calculated in different ways, however, you should use the formulas in the text. Also, you won't find all of the industry averages, but you will find most of them. You'll need the company's stock price for several of the ratios; use the fiscal year end price. The company's stock symbol is EAT.

(Visit Brinker web site) (Links to an external site.)

(Access industry averages) (Links to an external site.)

Note:

All quantitative work must be done in Excel; Word is not acceptable. You can download Brinker's 10K (annual financial statements they send the Securities and Exchange Commission each year) at the following site:

http://phx.corporate-ir.net/phoenix.zhtml?c=119205&p=irol-sec

You then need to take the various items off the financial statements such as Revenues, Inventory, etc. and calculate the ratios to answer the case questions.

b. calculate the 2014 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the companyâs liquidity position in 2012, 2013, and as projected for 2014? We often think of rations as being useful 1. To managers to help run the business, 2. To bankers for credit analysis, and 3. To stockholders for stock valuation. Would these different types of analysts have an equal interest in the liquidity ratios?

c. Calculate the 2014 inventory turnover, days sales outstanding, fixed assets turnover, and total assets turnover. How does Brinker utilization of assets stack up against that of other firms in its industry?

d. calculate the 2014 debt ratio, liabilities to assets ratio, times-interest-earned, and EBITDA coverage ratios. How does Brinker compare with the industry with respect to financial leverage: what can you conclude from these ratios:

e. Calculate the 2014 profit margin, basic earning power, return on assets, and return on equity. What can you say about these ratios?

f. Calculate the 2014 price/earnings ratio, price/cash flow ratio, and market/book ratio. Do these ratios indicate the investors are expected to have a high or low opinion of the company?

g. Perform a common size analysis and percentage change analysis. What do these analyses tell you about Brinker?

h. use the extended DuPont equation to provide a summary and overview of Brinkerâs financial condition as projected for 2014. What are the firmâs major strengths and weaknesses?

i. What are some potential problems and limitations of financial ratio analysis?

j. What are some qualitative factors that analysts should consider when evaluating a companyâs likely future financial performance.

home / study / business / accounting / questions and answers / the following information comes from the 2013 financial ...

Question

The following information comes from the 2013 financial statements of McDonaldâs Corporation (Company). Conventional franchise arrangements generally include a lease and a license, and provide for payment of initial fees, continuing rent, and royalties to the Company based upon a percent of sales, with minimum rent payments that parallel the Companyâs underlying leases and escalations (on properties that are leased). Under this arrangement, franchisees are granted the right to operate a restaurant using the McDonaldâs System and, in most cases, the use of a restaurant facility, generally for a period of 20 years. These franchisees pay related occupancy costs, including property taxes, insurance, and maintenance. Affiliates and developmental licensees operating under license agreements pay a royalty to the Company based upon a percent of sales, and may also pay initial fees. The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material to the consolidated financial statements for periods prior to purchase and sale.

Revenues from franchised restaurants consisted of the following:

In Millions	2013	2012	2011
Rents	$6,054.40	$5,863.50	$5,718.50
Royalties	3,100.40	3,032.60	2,929.80
Initial fees	76.70	68.40	64.90
Revenues from franchised restaurants	$9,231.50	$8,964.50	$8,713.20

Future minimum rent payments due to the Company under existing franchise arrangements are:

In Millions	Owned Sites	Leased Sites	Total
2014	$1,321.40	$1,381.80	$2,703.20
2015	1,279.40	1,332.30	2,611.70
2016	1,228.50	1,278.20	2,506.70
2017	1,166.90	1,209.70	2,376.60
2018	1,121.90	1,138.60	2,260.50
Thereafter	9,636.40	8,405.80	18,042.20
Total minimum payments	$15,754.50	$14,746.40	$30,500.90

This $30.5 billion represents the future minimum payments that McDonaldâs expected to receive from its franchisees as of December 31, 2013. Address the following questions:

1. Using the element definition from the conceptual framework, should this $30.5 billion be recorded as an asset in McDonaldâs 2013 balance sheet? Why or why not?

2. If your answer to Part 1 above is yes, what measurement attributes should be used in reporting the asset?

3. There are three main types of franchise. Describe each of the three and determine which of the three McDonald's conventional franchise arrangement is. Can McDonald's use any of the other two types of franchise? Why or why not? Be sure to provide rationale to support your position.

FIN 202 Lecture 1: UFAS-PresentationOfFS

Document Summary

Get access

Related Documents

CPSC 079 Lecture Notes - Lecture 3: Income Statement, Avco, Credit Risk

ACC 304 Lecture Notes - Lecture 1: Foreign Exchange Spot, Financial Statement, Spot Contract

ADMN 4303H Chapter Notes - Chapter 11: Cash Flow Statement, Canadian Dollar, Financial Statement

Related Questions