Professional Documents
Culture Documents
Quality of accounting
Introduction to accounting analysis
Earnings sustainability
Earnings management
Steps in accounting analysis
Income tax
Consider
Economic faithfulness of accounting measurement
and classifications
Reliability of the measurements
Fit of GAAP
Reasonableness of the estimates
Adequacy of disclosures
permanent nature
Extraordinary items:
Unusual in nature
Infrequent in occurrence
Material in amount
voluntary
Restructuring charges:
when
the carrying value of long lived assets are not recoverable,
assets need to be written down to market values and an
impairment loss is recognised.
Costs relating to the major
changes in the strategic direction or level of operations of
business
Problem 9.6
Problem 9.9
Problem 9.10