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Are you a California CNA?
This course can benefit accountants, as well as business managers, that want to understand how financial ratios and other forms of analyses can be used to evaluate a business. This course also covers the investment classifications and investment accounting used by companies to record investments within their financial statements. Below is a listing of the items covered within the course. - The basic tools to evaluate company financial statements including
- Vertical Analysis;
- Horizontal Analysis;
- Ratio Analysis
- Liquidity and Efficiency Analysis
- Solvency
- Profitability
- Market Prospects
- DuPont Analysis
- Accounting for company investments depending on the type of investment, the holding period of the investment, the company’s intent, and the company’s percentage of investment in the investee’s equity.
- Accounting for debt investments including:
- Bond valuation;
- Recording of bond acquisitions and interest revenue;
- Accounting classifications for debt investment including accounting for:
- Held-to-maturity debt
- Trading debt
- Available-for-sale debt
- Sales and impairments of debt instruments;
- Financial statements’ presentation of investments in debt instruments including comprehensive income, international reporting standards, and the fair value option.
- Accounting for equity investments including illustration of investment acquisition, receipt of dividends, recording of fair value changes, and investment selling.
- Discussion of the treatment of equity investments under the following accounting approaches:
- Fair Value Through Net Income Approach
- Equity Method Approach
- Consolidation Method
Course Publication Date: January 17, 2022
This course is available with NO ADDITIONAL FEE if you have an active self study membership or all access membership or can be purchased for $40.00!
| Author: | CPE Academy LLC |
| Course No: | FIN-INVEST-1521 |
| Recommended CPE: | 4.00 |
| Delivery Method: | QAS Self Study |
| Level of Knowledge: | Intermediate |
| Prerequisites: | None |
| Advanced Preparation: | None |
| Recommended Field of Study: | Finance
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Learning Objectives
- Describe the various company evaluation techniques including vertical, horizontal, and ratio analysis that can be used.
- Demonstrate an understanding of various company ratios for liquidity and efficiency, solvency, profitability, and market prospects.
- Compute various company ratios for liquidity and efficiency, solvency, profitability, and market prospects.
- Compute the DuPont Analysis given the appropriate company information.
- Demonstrate an understanding of basic bond valuation including recording a bond acquisition and interest revenue.
- Describe the various accounting classifications including held-to-maturity, trading, and available-for-sale for debt securities.
- Demonstrate an understanding of sales and impairments of debt investments.
- Demonstrate an understanding of the financial statements’ presentations, international reporting standards, and the fair value option of debt investments.
- Discuss what is meant by significant influence and how it effects the accounting classification of equity investments.
- Explain the recording of the purchase of equity investments.
- Demonstrate an understanding of how dividends, changes in fair value, impairment, and the sale of an equity investment are recorded under the fair value through the net income approach.
- Explain the financial statement presentation under the fair value through the net income approach.
- Demonstrate an understanding of the recording of investment revenue, receipt of dividends, and additional adjustments under the equity method approach.
- Explain the financial statement presentation under the equity method approach.
- Discuss the fair value option under the equity method approach.
- Demonstrate an understanding of the recording of investment revenue, receipt of dividends, and recording of additional adjustment under the equity method approach.
- Demonstrate an understanding of the consolidation method including the concept of noncontrolling interest and the consolidated financial statements.
- Explain where various investment types are presented within the financial statements.
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