What This Book Will Do for You
Part 1 Reports and Filings
One Chief Financial Officer's Role and Reports
The Role of the Chief Financial Officer
Governmental Reporting
Reporting Under the Sarbanes-Oxley Act
Extensible Business Reporting Language (Xbrl) Reporting
Other Reporting
Two Securities and Exchange Commission Filings
SEC Rules
S Forms
SEC Regulations
SOX Reporting requirements
Part 2 Financial Reporting
Three Financial Statement Reporting: The Income Statement
Revenue Recognition
Construction Contracts
Expense Recognition
Four Financial Statement Reporting: The Balance Sheet
Accounts Receivable
Inventory
Fixed Assets
Liabilities
Accounting for Compensated Absences
Environmental Obligations
Fair Value Measurements
The Fair Value Option for Financial Assets and Financial Liabilities
Electing the Fair Value Option
Statement of Cash Flows
Available-for-Sale and Held-to- Maturity Securities
Five Statement of Cash Flows
Classifications of Cash Flow
Analysis of the Statement of Cash Flows
Six Accounting and Disclosures
Accounting Changes
Futures Contracts
Various Disclosures
Seven Key Financial Accounting Areas
Consolidation
Investments in Stocks and Bonds
Leases 1
Pension Plans
Postretirement Benefits Excluding Pensions
Income Tax Allocation
Foreign Currency Accounting
International Financial Reporting Standards (IFRS)
Eight Interim and Segmental Reporting
Interim Reporting
Segmental Reporting
Part 3 Cost Management and IT Systems
Nine Cost Management and Analysis
Strategic Cost Management
Activity-Based Costing (ABC)
Activity-Based Management (ABM)
Target Costing and Pricing
Ten Cost-Volume-Profit Analysis and Leverage
Cost-Volume-Profit Analysis
“What-If” Analysis
Sales-Mix Analysis
CVP Analysis for Nonprofit Organizations
Leverage
Eleven Short-Term Decisions
Relevant Costs
The Best Use of Scarce Resources
The Theory of Constraints
Twelve Financial Forecasting, Planning, and Budgeting
Financial Forecasting: The Percent-of-Sales Method
Budgeting
Using an electronic spreadsheet to develop a budget plan
Budgeting Software
The Latest Generation of Budgeting and Planning (B&P) Software and E-Budgeting
Thirteen Risk Management
Enterprise Risk Management (ERM)
An Approach to Risk Management
A Close Look at Risk Management
How to Reduce Investment Risk: Diversify
Beta—the Capital Asset Pricing Model (CAPM)
The Arbitrage Pricing Model (APM)
Fourteen Capital Budgeting and Real Options
Time Value Fundamentals
Popular Evaluation Techniques
Profitability Index (or Present Value Index)
Limited Funds for Capital Spending
Real Options
Discovery-Driven Planning
Effect of Income Taxes on Capital Budgeting Decisions
Fifteen The What and Why of Responsibility Accounting
Cost Center Performance and Standard Costs
Flexible Budgets and Performance Reports
Production Mix and Yield Variances
Sixteen Control of Profit Centers
Profit Variance Analysis
Seventeen Performance of Investment Centers and Transfer Pricing
Rate of Return on Investment (ROI)
Residual Income (RI)
Investment Decisions Under ROI and RI
Transfer Pricing
Eighteen How to Analyze and Improve Corporate Profitability and Shareholder Value
Measures of Managerial Performance and Shareholder Return
The Sustainable Rate of Growth
Economic Value Added)
Balanced Scorecard
Nineteen Information Technology (IT) and IT Systems
Management Information System (MIS)
Value Chain Management Software
Extensible Business Reporting Language (xbrl
Web 2.0
Cloud Computing and Competitive Advantage
Mobile Computing (Wireless Technology)
Handheld Device Security and Contingency Planning
Disaster Recovery and Business Continuity Planning (BCP)
The CFO's View of Information Technology: A Current Survey
Part 4 Management of Assets and Liabilities
Twenty Working Capital and Cash Management
Evaluating Working Capital
Cash Management
Cash Management Models
Banking Relationships
International Cash Management
Twenty-one Management of Accounts Receivable
Managing Receivables
Investment in Accounts Receivable
Twenty-two Inventory Management
Inventory Management Policies
Inventory Costs
Economic Order Quantity (EOQ
Reorder Point
How to Find the Optimal Safety Stock Size
ABC Inventory Control
Service Business
Twenty-three Management of Payables
Accounts Payable System
Managing Payables
Part 5 Financing the Business
Twenty-four Short-Term and Intermediate-Term Financing
Short-Term Financing
Intermediate-Term Financing
Twenty-five Long-Term Financing
Types of Long-Term Debt and When Each Should Be Used
Issuance of Equity Securities
Financing Strategy
Twenty-six Warrants and Convertibles
Warrants
Convertible Securities
Twenty-seven Cost of Capital and Capital Structure Decisions
Cost of Debt
Cost of Preferred Stock
Cost of Equity Capital
Cost of Retained Earnings
Overall Cost of Capital
EBIT-EPS Approach to Capital Structure Decisions
Analysis of Corporate Cash Flows
Coverage Ratios
Capital Structure Decisions
Twenty-eight Dividend Policy
Types of Dividend Policies
Variables To Be Considered
Twenty-nine Financial Management of Multinational Corporations
Foreign Exchange Market
Financial Strategies
Types of Foreign Exchange Exposure
Interest Rate Parity
Purchasing Power Parity
Appraising Foreign Investments
Financing&
Analysis of Foreign Investments
Part 6 Financial Analysis, Insurance and Legal Considerations, and Economics
Thirty Financial Statement Analysis
Balance Sheet Analysis
Potential for Business Failure
Income Statement Analysis
Market Value Ratios
Analyzing the Financial Structure of the Firm
Product Line Measures
Industry Characteristics Indicative of Greater Risk
Ratios to Be Examined
Considerations in Foreign Operations
Thirty-one Analysis, Evaluation, and Control of Revenue and Costs
Control Reports
Control of Costs
Performance Measures
Business Processes
Thirty-two Insurance and Legal Considerations
Types of Insurance
Medical and Catastrophe Coverage
Liability Insurance Coverage for CFOs
Business Law
Thirty-three Reading Economic Indicators
Measures of Overall Economic Performance
Price Indices
Indices of Labor Market Conditions
Money and Credit Market Indicators
Measures for Major Product Markets
Housing-Related Measures
Indices of Leading, Coincident, and Lagging Economic Indicators
Other Important Economic Indices
Monetary Indicators and How They Impact the Economy
Understanding Economic Data and Indicators
Economic Indicators and Stocks and Businesses
Economic Indicators and Bond Yields
Part 7 Liquidly and Treasury
Thirty-four Corporate Investments in Securities
Terms and Features of Bonds
Other Fixed Income Investments
Money Market Preferred Stock
Private Equity
Current Trend in Liquidity Management Strategy
Part 8 Taxation
Thirty-five Tax Factors in Financial Decision Making
Gross Income
Depreciation
Tax Planning
Part 9 Mergers & Acquisitions, Divestitures, Failure, and Reorganization
Thirty-six Mergers and Acquisitions
Valuation (M&A)
Fair Market Value of Net Assets
Capitalization of Revenue
Price-Earnings Ratio
Similar Businesses
Sales of Stock
Combination of Methods
Successful Strategy for M&A
Thirty-seven Divestiture
Asset Valuation Method
Profitability Methods
Market-Based Comparisons
Discounted Cash Flow Analysis
Divestiture with Uncertainty
Thirty-eight Forecasting Corporate Financial Distress
Prediction Models
Z-Score Model
Applications
Thirty-nine Failure and Reorganization
Business Failure
Reorganization
Forty Valuation of Bonds and Stocks
How to Value a Security
How to Value Bonds
How to Value Preferred Stock
How to Value Common Stock
Price-Earnings Ratio Approaches
Other Pragmatic Approaches
Forty-one Financial Statement Analysis: Key Financial Ratios and Metrics for Nonprofit
Trend Analysis
Analysis of the Balance Sheet
Liquidity Analysis
Appraisal of Solvency, Capital Structure, and NET Assets (Fund Balance)
Evaluation of The Statement of Activities
Performance Metrics
Spotting Potential Bankruptcy and Avoiding Financial Problems
Case Study in Financial Statement Analysis
Appendix
About the Authors
Index
