Corporate Financial Reporting

Discussion Questions:
1. How basic EPS can be calculated?
2. major sources from where an analyst can get information for financial analysis and
reporting.
3. IASB general requirements for preparing financial statements.
4. steps of recognizing revenue in income statement
5. steps in the financial statement analysis framework
6. Distinguish current and noncurrent assets/ current liabilities and non current liabilities
7. Distinguish FIFO and LIFO method
8. qualitative characteristics that are identified by Conceptual Framework in making
financial information more useful
9. “Central focus of financial analysis is evaluating the company’s ability to earn a return
on its capital that is at least equal to the cost of that capital, to profitably grow its
operations, and to generate enough cash to meet obligations and pursue
opportunities.”- Write a response
10. Illustrate the components and format of balance sheet with a hypothetical example.
11. Why do investors need to evaluate liquidity ratios? Describe different types of liquidity
ratios with proper definition and related interpretation of each.
12. difference between IFRS and US GAAP standard in preparing cash flow statements.
13. Components of shareholders equity
14. Describe cashflow from operating, investing, and financing activities
15. Describe the components of profitability ratio
Mathematical Application
1. Under the accrual basis of accounting, calculate net revenue
2. Calculate cost of goods sold under the weighted average cost method
3. Calculate Company’s Basic EPS.
4. Calculate company’s diluted EPS.
5. Calculate and compare higher revenue growth.
6. Calculate receivables turnover and number of days of sales outstanding (DSO)
7. Compute company’s operating cash flow
Short Notes
Working Capital, Gross Profit, Call Option, Activity Ratio, Historical cost, Basic EPS,
Diluted EPS, Comprehensive Income, Debt-to-equity Ratio, Equity, LIFO Method, Solvency
Ratios, FIFO Method, Internal Rate of Return, Put Option, Time Series Data, Unearned
Revenue, Depreciation, GAAP, IFRS

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