英文台湾中兴大学金融系王之彦老师的财务报表分析chap004.ppt

Analyzing Investing Activities Inventories Inventories When a unit is sold, the average cost of each unit in inventory is assigned to cost of goods sold. A company is required to use the same accounting methods from period to period. A change is only acceptable when it improves financial reporting. Inventory must be reported at market value when market is lower than cost. Compute LCM for individual items, inventory groups, and overall inventory. Derivative Securities Derivative Securities Derivative Securities Derivative Securities Derivative Securities Derivative Securities Long-Lived Asset Introduction Long-Lived Asset Introduction Long-Lived Asset Introduction Long-Lived Asset Introduction The calculation of depreciation requires three amounts for each asset: Cost. Salvage Value. Useful Life. Depreciation Method Total depletion cost for a period is: Record at cost, including purchase price, legal fees, and filing fees. Patents Copyrights Leaseholds Leasehold Improvements Goodwill Trademarks and Trade Names Amortize identifiable intangibles over shorter of economic life or legal life, subject to a maximum of 40 years. Use straight-line method. Research and development costs arenormally expensed as incurred. Goodwill is not amortized, but is tested annually for impairment Plant Assets Natural Resources Analyzing Depreciation and Depletion ? Assess reasonableness of depreciable base, useful life, and allocation method ? Review any revisions of useful lives ? Evaluate adequacy of depreciation—ratio of depreciation to total assets or to another size-related factors ? Analyze plant asset age—measures include Average total life span = Gross plant and equipment assets / Current year depreciation expense. Average age = Accumulated depreciation / Current year depreciation expense. Average remaining life = Net plant and equipment assets / Current year depreciation expense. Average