formulas Flashcards
resources
= funding
= debt + equity
= debt + liabilities + equity
non current + current = debt + liability + equity
equity
= called up capital + reserves
assets
= liabilies + capital
accounting equation income statement
Non-current asset + current asset = non-current liability + current liabilities + share capital + reserves
or
non current asset + current asset - current liability - non current liability = share capital + reserves + retained earnings
Balance account
Opening BS +/- IS +/- CF = closing BS
discontinued operations:
amount on I/S
= POST TAX PL of discontinued operation + post tax gain/loss on disposal
Basic EPS
= net income - preferred dividends / weignted average of shares oustanding
diluted EPS
- convertible preferred stock
= (net income) / (weighted average n of shares outstanding + new common shares if converted)
diluted EPS
- convertible debt
= (net income + aftertac interest on convetible - preferred dividents) / (weighted av. N + new common shares )
diluted EPS
- stock options, warrent etc.
= (net income - preferred dividends) / (weighted av. + new shared if exercised - shares REPURCHASED)
inventory
inventories = quantity at hand x value
determination of the cost
cost = cost of purchase + cost of conversion + other cost
determination of NRV
NRV = selling price - cost to make sale
equation of inventory
ending inv = beginning inv + purchases - cost of goods solv (COGS)
COGS
cost of goods solv = BI + purchases - EI
COGS = COGS LIF - LIFO reserve increase5555555555
weighted average
WA = ((total cost)BI + purchases) / total units
weighted average cost of borrowing
= (amount 1 x interest + amount 2 x interest) / (amount 1 + amount 2)
NBV
= carrying value - accumulated depriciation
SOYD
: (cost - salvage value (residual)) x (year remaining /sum of the digits )
-> sum = n ((n+1)/2)
declining balance
: cost x NBV
-> cost % = ((residual value / original cost ) -1)^(1/usefull life)
double declining
: NBC x (2/ useful life)
straight line
(cost - residual value ) / useful life 2
To calculate the total costs of finance:
Total cost of finance = Total amount repayable − PV of future cash flows
Closing Balance
Opening balance + Finance charge – Coupon paid = Closing Balance
Convertible bond
This is treated by residual allocation method.
Total Market value of debt
- market value of debt WITHOUT conversion
= Residual balance
Asset is capitalized at the lesser of FV of the asset and the PV of the minimum lease payments
MLP:
Minimum rental payments
+ guaranteed residual value by lessee
+ Bargain purchase option
= MLP minimum lease payments
To calculate the charge of the financial lease on IS and BS:
Step 1. What value to capitalize (spread)?
- Lesser of FV or PV of MLP
To calculate MLP: Min. Rental payments + residual value + bargain purchase option
Step 2:
- Calculate the lease payments per year IS
Opening balance + Interest – Lease rental = Ending balance
Step 3.
Record:
o BS – assets: cost; depreciation, NBV
o BS – liability: non current, current, total obligation
