财务报表分析Chapter02

2013/9/2012-12CHAPTERFinancialReportingandAnalysis2-2Form10-K(AnnualReport)10-Q(QuarterlyReport)20-F(RegistrationStatement/AnnualReport[Foreign])8-K(CurrentReport)14-A(ProxyStatement/Prospectus)OtherSECFilingsStatutoryFinancialReports2-3GAAPTypesofAccountingrulesandguidelinesoStatementsofFinancialAccountingStandardsoAPBOpinions.oAccountingResearchBulletins(ARB).oAICPApronouncements.TheAICPAissuesguidelinesforcertaintopicsyettobeaddressedbytheFASBinitsStatementsofPosition(SOP)orforthoseinvolvingindustry-specificmattersinitsIndustryAuditandAccountingGuidelines.oEITFBulletins.EITFBulletinsareissuedbytheFASB’sEmergingIssuesTaskForce.oIndustrypractices.2013/9/2022-4EnvironmentalFactorsFinancialAccountingStandardsBoardGenerallyAcceptedAccountingPrinciplesProvideinputtoHelpsetSecuritiesandExchangeCommissionUnionsInvestorsAccountantsPoliticiansLendersOthersAICPA2-5EnvironmentalFactorsSecuritiesandExchangeCommission(SEC)oIndependent,quasi-judicialgovernmentagencyoAdministersecuritiesregulations&disclosuresoCanmodify&setGAAP,ifnecessaryoRarelydirectlychallengesFASBoMajorplayeringlobalaccounting2-6EnvironmentalFactorsInternationalFinancialReportingStandards(IFRS)SetbyInternationalAccountingStandardsBoardNotcurrentlyacceptedinU.S.SECunderpressuretoacceptIAS2013/9/2032-7EnvironmentalFactorsManagersofCompaniesoPrimaryresponsibilityforfair&accuratereportsoAppliesaccountingtoreflectbusinessactivitiesoManagerialdiscretionisnecessaryinaccountingoMajorlobbyistonGAAP2-8EnvironmentalFactorsAuditingoSECrequiresAuditReportoAuditopinioncanbe:oclean(fairlypresented)oqualified(exceptfor)odisclaimer(noopinion)oCheckAuditorquality&independenceAuditors2-9EnvironmentalFactorsCorporateGovernanceoBoardofdirectorsoversightoAuditcommitteeoftheboardooverseeaccountingprocessooverseeinternalcontrolooverseeinternal/externalauditoInternalAuditor2013/9/2042-10EnvironmentalFactorsInternalUsersExternalUsersControllerBudgetOfficersSalesManagersInternalAuditorsOfficersManagersCustomersExternalAuditorsLaborUnionsGovernmentsShareholdersLenders2-11AlternativeinformationsourcesVoluntaryDisclosureEconomic,Industry&CompanyNewsoImpactscurrent&futurefinancialconditionandperformanceInformationIntermediariesoIndustrydevotedtocollecting,processing,interpreting&disseminatingcompanyinformationoIncludesanalysts,advisers,debtraters,buy-andsell-sideanalysts,andforecastersoMajordeterminantofGAAPMotivation-Legalliability,ExpectationsAdjustment,Signaling,Managingexpectations2-12DesirableQualitiesofAccountingInformationoRelevance-thecapacityofinformationtoaffectadecisionoReliability-Forinformationtobereliableitmustbeverifiable,representationallyfaithful,andneutral.oVerifiabilitymeanstheinformationisconfirmable.ofaithfulnessmeanstheinformationreflectsreality,andoneutralitymeansitistruthfulandunbiased.2013/9/2052-13FinancialAccountingoHistoricalCost-fair&objectivevaluesfromarm’s-lengthbargainingoAccrualAccounting-recognizerevenueswhenearned,expenseswhenincurredoMateriality-thresholdwheninformationimpactsdecisionmakingoConservatism-reportingordisclosingtheleastoptimisticinformationaboutuncertaineventsandtransactionsImportantAccountingPrinciples2-14FinancialAccountingRelevanceofAccountingInformationRelationbetweenAccountingNumbersandStockPrices2-15FinancialAccountingoTimeliness-periodicdisclosure,notreal-timebasisoFrequency-quarterlyandannuallyoForwardLooking-limitedprospectiveinformationLimitationsofAccountingInformation2013/9/2062-16Accruals-TheCornerstoneoEstablishcompanyandinvest$700equityoPurchaseplainT-shirtsfor$5eachoFixedscreencostof$100oVariableprintcostof$0.75perT-shirtoSold25T-shirtsat$10eachforcashoSold25T-shirtsat$10eachoncreditIllustration-CaseFacts2-17ReceiptsAssetsT-Shirtsales$250Cash$275PaymentsT-Shirtpurchases$500EquityScreenpurchase100BeginningEquity$700Printingcharges75Lessnetcashoutflow(425)Totalpayments$(675)Totalequity$275Netcashoutflow$(425)Accruals-TheCornerstoneCaseIllustration–CashAccountingStatementofCashFlowsBalanceSheet(Cashbasis)2-18RevenuesAssetsT-Shirtsales$500.00Cash$275.00T-Shirtinventory337.50ExpensesReceivables250.00T-Shirtscosts$250.00Totalassets$862.50Screendepreciation50.00Printingcharges37.50EquityTotalexpenses(337.50)Beginningequity$700.00Addnetincome162.50Netincome$162.50Totalequity$862.50Accruals-TheCornerstoneCaseIllustration–AccrualAccountingBalanceSheet(Accrualbasis)IncomeStatement2013/9/2072-19Accruals-TheCornerstoneNetIncome=AccrualsOperatingCashFlow+=+2-20RevenueRecognition–recognizerevenueswhen(1)Earned(2)RealizedorRealizableExpenseMatching–matchwithcorrespondingrevenues-Productcosts-PeriodcostsAccruals-TheCornerstoneFoundationsofAccrualAccounting2-21Accruals-TheCornerstoneRelationbetweenCashFlowsandAccrualsOperatingcashflow(OCF)-/+Cashinvestment&divestmentinoperatingassets=Freecashflow(FCF)+/-Financingcashflows(includinginvestment&divestmentinfinancingassets)=Netcashflow(NCF)2013/9/2082-22Accruals-TheCornerstoneShort-TermandLong-TermAccrualsShort-TermAccruals:Yieldcurrentassetsandcurrentliabilities(alsocalledworkingcapitalaccruals)Long-TermAccruals:Yieldnon-currentassetsandnon-currentliabilities(arisemainlyfromcapitalization)Note:Analysisresearchsuggestsshort-termaccrualsaremoreusefulincompanyvaluation2-23Accruals-TheCornerstoneAccrualsandCashFlows-MythsoMyth:Sincecompanyvaluedependsonfuturecashflows,onlycurrentcashflowsarerelevantforvaluation.oMyth:Allcashflowsarevaluerelevant.oMyth:Allaccrualaccountingadjustmentsarevalueirrelevant.oMyth:Cashflowscannotbemanipulated.oMyth:Allincomeismanipulated.oMyth:Itisimpossibletoconsistentlymanageincomeupwardinthelongrun.2-24Accruals-TheCornerstoneAccrualsandCashFlows-TruthsoTruth:Accrualaccounting(income)ismorerelevantthancashflow.oTruth:Cashflowsaremorereliablethanaccruals.oTruth:Accrualaccountingnumbersaresubjecttoaccountingdistortions.oTruth:Companyvaluecanbedeterminedbyusingaccrualaccountingnumbers.2013/9/2092-25AccountingconceptofincomeoBasedontheconceptofaccrualaccountingoMainpurposeisincomemeasurementoTwomainprocesses–oRevenuerecognitionoExpensematching2-26AccountingVsEconomicincomeReasonsfordifferenceoAlternativeincomeconceptsoHistoricalcostoTransactionbasisoConservatismoEarningsmanagement2-27FairvalueaccountingAssetandliabilityvaluesaredeterminedonthebasisoftheirfairvalues(typicallymarketprices)onthemeasurementdate(i.e.,approximatelythedateofthefinancialstatements).2013/9/20102-28Advantages&DisadvantagesAdvantagesoReflectscurrentinformation.oConsistentmeasurementcriteria.oComparabilityoNoconservativebiasoMoreusefulforequityanalysisDisadvantagesoLowerobjectivityoSusceptibilitytomanipulation.UseofLevel3inputs.oLackofconservatism.oExcessiveincomevolatility.2-29ImplicationsforAnalysisoFocusonthebalancesheet.oRestatingincome.oAnalyzinguseofinputs.oAnalyzingfinancialliabilities.2-30AccountingAnalysisDemandforAccountingAnalysisoAdjustforaccountingdistortionssofinancialreportsbetterreflecteconomicrealityoAdjustgeneral-purposefinancialstatementstomeetspecificanalysisobjectivesofaparticularuser2013/9/20112-31AccountingAnalysisSourcesofAccountingDistortionsoAccountingStandards–attributedto1)politicalprocessofstandard-setting,2)accountingprinciplesandassumptions,and3)conservatismoEstimationErrors–attributedtoestimationerrorsinherentinaccrualaccountingoReliabilityvsRelevance–attributedtoover-emphasisonreliabilityatthelossofrelevanceoEarningsManagement–attributedtowindow-dressingoffinancialstatementsbymanagerstoachievepersonalbenefits2-32AccountingAnalysisAnalysisObjectivesoComparativesAnalysis–demandforfinancialcomparisonsacrosscompaniesand/oracrosstimeoIncomeMeasurement-demandfor(1)equitywealthchangesand(2)measureofearningpower.Thesecorrespondtotwoalternativeincomeconcepts(1)EconomicIncome(orempirically,economicprofit)(2)PermanentIncome(orempirically,sustainableprofit)Chapter6discussesthesemeasuresindetail2-33AccountingAnalysisEarningsManagement–FrequentSourceofDistortionEarningManagementstrategies:oIncreasingIncome–managersadjustaccrualstoincreasereportedincomeoBigBath–managersrecordhugewrite-offsinoneperiodtorelieveotherperiodsofexpensesoIncomeSmoothing–managersdecreaseorincreasereportedincometoreduceitsvolatility2013/9/20122-34AccountingAnalysisEarningsManagement–MotivationsoContractingIncentives-managersadjustnumbersusedincontractsthataffecttheirwealth(e.g.,compensationcontracts)oStockPrices–managersadjustnumberstoinfluencestockpricesforpersonalbenefits(e.g.,mergers,optionorstockoffering)oOtherReasons-managersadjustnumberstoimpact1)labordemands,2)managementchanges,and3)societalviews2-35AccountingAnalysisEarningsManagement–MechanicsoIncomingShifting:AccelerateordelayrecognitionofrevenuesorexpensestoshiftincomefromoneperiodtoanotheroClassificatoryEarningsManagement:SelectivelyclassifyrevenuesEarningsandexpensesincertainpartsManagementoftheincomestatementtoaffectanalysisinferencesregardingtherecurringnatureoftheseitems2-36AccountingAnalysisProcessofAccountingAnalysisAccountinganalysisinvolvesseveralinter-relatedprocessesandtasksthatcanbegroupedintotwobroadareas:oEvaluatingEarningQuality:Steps1)Identifyandassesskeyaccountingpolicies2)Evaluateextentofaccountingflexibility3)Determinethereportingstrategy4)IdentifyandassessredflagsoAdjustingFinancialStatements:Identify,measure,andmakenecessaryadjustmentstofinancialstatementstobetterserveone’sanalysisobjectives;Chapters3-6focusonadjusting(recasting)thestatements2013/9/20132-37AuditingAndFinancialStatementAnalysis