https://gdpark.blog/tags/accounting/Recent content in Accounting on gdpark.blogHugoenSun, 26 Sep 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-01-balance-sheet/Wed, 31 Mar 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-01-balance-sheet/Kicking off the FRA grind from absolute zero — what Financial Reporting Analysis even is, why accounting matters, and a first peek at the balance sheet.https://gdpark.blog/posts/cfa-l1-02-income-statement-and-cash-flow-statement/Thu, 08 Apr 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-02-income-statement-and-cash-flow-statement/Quick rundown of the income statement — what it shows, why revenue ≠ profit, and why accountants split out discontinued operations so shareholders don’t get played.https://gdpark.blog/posts/cfa-l1-04-inventories-1-acquisition-cost/Fri, 16 Apr 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-04-inventories-1-acquisition-cost/We kick off our B/S line-item series with inventories — what they are, how acquisition cost first hits the books, and the cash-vs-credit purchase breakdown.https://gdpark.blog/posts/cfa-l1-05-inventories-2-cost-flow-assumptions/Thu, 22 Apr 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-05-inventories-2-cost-flow-assumptions/When prices and quantities change every single time you buy, you need a cost flow assumption — here’s the rundown on FIFO, LIFO, weighted average, and perpetual vs. periodic.https://gdpark.blog/posts/cfa-l1-06-inventories-3-lifo-reserve/Sun, 02 May 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-06-inventories-3-lifo-reserve/A casual walkthrough of how FIFO vs. LIFO choices ripple through key financial ratios — liquidity, solvency, and activity — before diving into the LIFO reserve.https://gdpark.blog/posts/cfa-l1-07-inventories-4-lower-of-cost-or-market-lcm/Sun, 09 May 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-07-inventories-4-lower-of-cost-or-market-lcm/We plug the last inventory gap: when year-end hits, unsold stock on the B/S gets valued at whichever is lower — historical cost or market value — that’s the LCM method.https://gdpark.blog/posts/cfa-l1-08-property-plant-and-equipment-1-acquisition/Sun, 16 May 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-08-property-plant-and-equipment-1-acquisition/We kick off long-lived assets by diving into PP&E acquisition — what counts as an asset, why it’s not just an expense, and how initial recognition works.https://gdpark.blog/posts/cfa-l1-09-property-plant-and-equipment-2-depreciation/Sun, 23 May 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-09-property-plant-and-equipment-2-depreciation/A casual breakdown of accounting depreciation for PPE — turns out it’s about spreading costs over useful life, not just saying an asset lost value.https://gdpark.blog/posts/cfa-l1-10-property-plant-and-equipment-3-revaluation-model/Sat, 29 May 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-10-property-plant-and-equipment-3-revaluation-model/IFRS lets you pick the Revaluation Model for PPE — and here’s why that’s a big deal (and a headache) compared to just sticking with the Cost Model.https://gdpark.blog/posts/cfa-l1-11-property-plant-and-equipment-4-impairment/Sat, 29 May 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-11-property-plant-and-equipment-4-impairment/Breaks down PPE impairment — what ‘gone bad’ actually means, how US-GAAP’s two-step recovery test works, and where IFRS handles things differently.https://gdpark.blog/posts/cfa-l1-12-investment-property/Sun, 06 Jun 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-12-investment-property/Investment property is just rental real estate — not speculation — and here’s how it differs from PPE under IFRS (spoiler: US GAAP doesn’t even have this account).https://gdpark.blog/posts/cfa-l1-13-intangible-assets/Sat, 12 Jun 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-13-intangible-assets/A breakdown of intangible assets — what they are, how they stack up against PP&E, and the surprisingly messy rules for getting them onto the B/S.https://gdpark.blog/posts/cfa-l1-14-income-tax-expense/Sat, 19 Jun 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-14-income-tax-expense/Breaking down how corporate tax expense actually works — from taxable income reconciliation to current vs. deferred tax — purely from the CFA angle, heh.https://gdpark.blog/posts/cfa-l1-15-effective-interest-rate-method-a-complete-accounting-guide/Sat, 03 Jul 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-15-effective-interest-rate-method-a-complete-accounting-guide/Breaking down the effective interest rate method and amortized cost from the issuer’s side — because honestly, I had to fully get it myself before I could explain it!https://gdpark.blog/posts/cfa-l1-16-bonds/Sun, 25 Jul 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-16-bonds/Cruising through bonds for CFA prep — par, discount, and premium bonds, how market interest rates set the price, and how it all lands on the financial statements.https://gdpark.blog/posts/cfa-l1-17-leases/Sat, 31 Jul 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-17-leases/A quick rundown of lease types and lessor/lessee basics you need to know — even though leases are basically gone from CFA Level 1 now, heh heh heh.https://gdpark.blog/posts/cfa-l1-18-pension/Sat, 07 Aug 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-18-pension/Quick intro to post-employment benefits and why you can’t just slap a retirement payout on the I/S all at once — matching principle, retirement allowance systems, and more.https://gdpark.blog/posts/cfa-l1-19-financial-ratios-1-financial-analysis-techniques/Fri, 13 Aug 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-19-financial-ratios-1-financial-analysis-techniques/A breezy intro to why financial ratios are surprisingly tricky — cross-company comparisons, IFRS vs US-GAAP headaches, the Samsung problem, and whether a 200% debt ratio is even bad.https://gdpark.blog/posts/cfa-l1-23-equity/Sun, 26 Sep 2021 00:00:00 +0000https://gdpark.blog/posts/cfa-l1-23-equity/A casual (expectations: low!) walkthrough of equity on the balance sheet — paid-in capital, par value, share premium, and just enough accounting cycle to get by for the CFA exam.