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What's the difference between the Face Value, Book Value, and Market Value of Debt?
Why might a company issue Debt with an Original Issue Discount (OID), and how is it recorded on the statements?
Why might a company continually record "Losses on Debt Extinguishment" on its statements?
How does a company record the initial issuance of a Convertible Bond on the statements?
What's the accounting treatment if a Convertible Bond converts into shares before its maturity date?
Explain the equity method of accounting (for equity investments or associate companies).
Explain consolidation accounting (for noncontrolling interests).
What happens on the financial statements when employees finally receive their shares from Stock-Based Compensation, and it becomes Cash-Tax Deductible to the company? Follow the U.S. GAAP treatment.
How is this treatment for Stock-Based Compensation different under IFRS? Just give a high-level overview.
How are Unrealized Gains and Losses recorded differently for Trading / Fair Value Through Profit & Loss (FVPL), Available for Sale (AFS) / Fair Value Through Other Comprehensive Income (FVOCI), and Held to Maturity (HTM) / Amortized Cost securities?
How are the LIFO, FIFO, and Moving Average Weighted Cost methods for Inventory and COGS different?
For a Defined-Benefit Pension plan, how do the Pension Asset and Pension Liability change over time?
Why does the Pension Expense on the Income Statement consist of mostly non-cash expenses?
Explain the links between the Pension Expense on the Income Statement, the Pension Plan Asset, the Pension Plan Liability, and the Pension items on the Cash Flow Statement.
Walk me through the financial statements when there's a $100 Face Value Debt issuance with $5 in Issuance Fees, amortized over 5 years, but the Debt is repaid early – at the end of Year 3. Assume a 5% coupon rate and no principal repayments until maturity, and explain just the changes in Year 3.
Walk me through the financial statements when there's a $100 Face Value Convertible Bond issued with a Liability Component of $80 and $5 in Issuance Fees. Assume straight-line amortization over 5 years and a coupon rate of 1.0%.
What happens if this same Convertible Bond converts into common shares at the end of Year 3?
Walk me through the financial statements over a year when a company has issued a $100 Face Value bond with 5% Cash Interest and 5% PIK Interest. Ignore the Issuance Fees.
Walk me through the statements when a Parent Co. already owns a 30% stake in Sub Co., and the Sub Co. earns $100 in Net Income and issues $40 in Dividends.
Walk me through the Balance Sheet combination when Parent Co. goes from a 30% stake to an 80% stake in Sub Co., using 100% Cash for the purchase price. Assume that Sub Co.'s Market Cap is $200 and that it has $200 in Total Assets and $50 in Total Liabilities. Also, assume that Parent Co. acquired its 30% stake in Sub Co. when Sub Co.’s Market Cap was $50, and that its Balance Sheet value has not changed since then.
Walk me through the statements under U.S. GAAP when employees receive $40 of Stock-Based Compensation and then exercise their options and receive shares once the SBC’s value has increased to $140 in a future year.
Walk me through the statements when a company has $100 of Equity Securities classified as Trading or FVPL, and it records an Unrealized Gain of $40 on them.