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CFO Fundamentals: Your Quick Guide to Internal Controls, Financial Reporting, IFRS, Web 2.0, Cloud Computing, and More

Book Description

The thorough reference that goes wherever you go

The Complete CFO Reference is the perfect up-to-date reference tool for today's busy CFO, controller, treasurer, and other finance professionals. Written in an easy format and packed with checklists, samples, and worked-out solutions for a wide variety of accounting and finance problems, readers can take this handy reference wherever they go-on a business trip, visiting a client, conducting a conference call, or attending a meeting.

  • Covers all major developments in finance and accounting every CFO needs to know about including IFRS, Web-based planning, and ranging from financial reporting and internal control to financial decision making for shareholder value maximization

  • Includes tables, forms, checklists, questionnaires, practical tips, and sample reports

  • Incorporates Accounting Standards Codification (ASC) throughout the book, as well as coverage of International Financial Reporting Standards (IFRS) and its impact on financial reporting, XBRL reporting, risk management and disaster recovery, Web-based planning and budgeting, Web 2.0, cloud computing, and environmental costing

Simplifying day-to-day work in dozens of critical areas, The Complete CFO Reference is the perfect up-to-date reference tool for today's busy chief financial officer (CFO), controller, treasurer, financial director, budgeting director, and other financial professionals in public practice and private industry.

Table of Contents

  1. Cover
  2. Series
  3. Title Page
  4. Copyright
  5. Dedication
  6. What This Book Will Do for You
  7. Part One: Reports and Filings
    1. Chapter One: Chief Financial Officer's Role and Reports
      1. ROLE OF THE CHIEF FINANCIAL OFFICER
      2. GOVERNMENTAL REPORTING
      3. REPORTING UNDER THE SARBANES-OXLEY ACT
      4. XBRL REPORTING
      5. OTHER REPORTING
    2. Chapter Two: Securities and Exchange Commission Filings
      1. SEC RULES
      2. S FORMS
      3. SEC REGULATIONS
      4. SOX REPORTING REQUIREMENTS
  8. Part Two: Financial Reporting
    1. Chapter Three: Financial Statement Reporting: The Income Statement
      1. HOW IS THE INCOME STATEMENT PRESENTED?
      2. REVENUE RECOGNITION
      3. CONSTRUCTION CONTRACTS
      4. EXPENSE RECOGNITION
    2. Chapter Four: Financial Statement Reporting: The Balance Sheet
      1. ASSETS
      2. ACCOUNTS RECEIVABLE
      3. INVENTORY
      4. FIXED ASSETS
      5. DISCLOSURE
      6. LIABILITIES
      7. ACCOUNTING FOR COMPENSATED ABSENCES
      8. ENVIRONMENTAL OBLIGATIONS
      9. EXIT OR DISPOSAL ACTIVITIES
      10. FAIR VALUE MEASUREMENTS
      11. FAIR VALUE OPTION FOR FINANCIAL ASSETS AND FINANCIAL LIABILITIES
      12. STATEMENT OF CASH FLOWS
      13. AVAILABLE-FOR-SALE AND HELD-TO-MATURITY SECURITIES
    3. Chapter Five: Statement of Cash Flows
      1. CLASSIFICATIONS OF CASH FLOW
      2. ANALYSIS OF THE STATEMENT OF CASH FLOWS
    4. Chapter Six: Accounting and Disclosures
      1. ACCOUNTING CHANGES
      2. FUTURES CONTRACTS
      3. VARIOUS DISCLOSURES
    5. Chapter Seven: Key Financial Accounting Areas
      1. CONSOLIDATION
      2. INVESTMENTS IN STOCKS AND BONDS
      3. LEASES
      4. PENSION PLANS
      5. POSTRETIREMENT BENEFITS EXCLUDING PENSIONS
      6. INCOME TAX ALLOCATION
      7. DEFERRED TAX LIABILITY VERSUS DEFERRED TAX ASSET
      8. TAX RATES
      9. FOREIGN CURRENCY ACCOUNTING
      10. TRANSLATION OF FOREIGN CURRENCY STATEMENTS WHEN THE FOREIGN CURRENCY IS THE FUNCTIONAL CURRENCY
      11. INTERNATIONAL FINANCIAL REPORTING STANDARDS
    6. Chapter Eight: Interim and Segmental Reporting
      1. INTERIM REPORTING
      2. SEGMENTAL REPORTING
  9. Part Three: Cost Management and IT Systems
    1. Chapter Nine: Cost Management and Analysis
      1. WHAT IS COST MANAGEMENT AND ANALYSIS?
      2. STRATEGIC COST MANAGEMENT
      3. OVERHEAD COSTING
      4. ACTIVITY-BASED COSTING
      5. ACTIVITY-BASED MANAGEMENT
      6. TARGET COSTING AND PRICING
    2. Chapter Ten: Cost-Volume-Profit Analysis and Leverage
      1. COST-VOLUME-PROFIT ANALYSIS
      2. WHAT-IF ANALYSIS
      3. SALES-MIX ANALYSIS
      4. CVP ANALYSIS FOR NONPROFIT ORGANIZATIONS
      5. LEVERAGE
    3. Chapter Eleven: Short-Term Decisions
      1. RELEVANT COSTS
      2. BEST USE OF SCARCE RESOURCES
      3. THEORY OF CONSTRAINTS
    4. Chapter Twelve: Financial Forecasting, Planning, and Budgeting
      1. FINANCIAL FORECASTING: THE PERCENT-OF-SALES METHOD
      2. BUDGETING
      3. SOME FINANCIAL CALCULATIONS
      4. BUDGETING SOFTWARE
      5. USING AN ELECTRONIC SPREADSHEET TO DEVELOP A BUDGET PLAN
      6. LATEST GENERATION OF BUDGETING AND PLANNING SOFTWARE AND E-BUDGETING
    5. Chapter Thirteen: Risk Management
      1. ENTERPRISE RISK MANAGEMENT
      2. AN APPROACH TO RISK MANAGEMENT
      3. A CLOSE LOOK AT RISK MANAGEMENT
      4. HOW TO REDUCE INVESTMENT RISK: DIVERSIFY
      5. BETA—THE CAPITAL ASSET PRICING MODEL
      6. ARBITRAGE PRICING MODEL
    6. Chapter Fourteen: Capital Budgeting and Real Options
      1. WHAT IS CAPITAL BUDGETING?
      2. WHAT ARE THE TYPES OF INVESTMENT PROJECTS?
      3. WHAT ARE THE FEATURES OF INVESTMENT PROJECTS?
      4. TIME VALUE FUNDAMENTALS
      5. POPULAR EVALUATION TECHNIQUES
      6. LIMITED FUNDS FOR CAPITAL SPENDING
      7. REAL OPTIONS
      8. DISCOVERY-DRIVEN PLANNING
      9. EFFECT OF INCOME TAXES ON CAPITAL BUDGETING DECISIONS
    7. Chapter Fifteen: The What and Why of Responsibility Accounting
      1. RESPONSIBILITY ACCOUNTING BASICS
      2. COST CENTER PERFORMANCE AND STANDARD COSTS
      3. FLEXIBLE BUDGETS AND PERFORMANCE REPORTS
      4. PRODUCTION MIX AND YIELD VARIANCES
    8. Chapter Sixteen: Control of Profit Centers
      1. HOW DO YOU EVALUATE PROFIT CENTERS?
      2. PROFIT VARIANCE ANALYSIS
    9. Chapter Seventeen: Performance of Investment Centers and Transfer Pricing
      1. RATE OF RETURN ON INVESTMENT
      2. RESIDUAL INCOME
      3. INVESTMENT DECISIONS UNDER ROI AND RI
      4. TRANSFER PRICING
    10. Chapter Eighteen: How to Analyze and Improve Corporate Profitability and Shareholder Value
      1. MEASURES OF MANAGERIAL PERFORMANCE AND SHAREHOLDER RETURN
      2. SUSTAINABLE RATE OF GROWTH
      3. ECONOMIC VALUE ADDED
      4. BALANCED SCORECARD
    11. Chapter Nineteen: Information Technology and IT Systems
      1. COMPUTER TECHNOLOGIES AVAILABLE FOR BUSINESS
      2. ROLE OF INFORMATION SYSTEMS IN THE STRATEGIC PLAN
      3. MANAGEMENT INFORMATION SYSTEMS
      4. WHO USES EXECUTIVE INFORMATION SYSTEMS?
      5. VALUE CHAIN MANAGEMENT SOFTWARE
      6. EXTENSIBLE BUSINESS REPORTING LANGUAGE
      7. WEB 2.0
      8. CLOUD COMPUTING AND COMPARATIVE ADVANTAGE
      9. MOBILE COMPUTING (WIRELESS TECHNOLOGY)
      10. HANDHELD DEVICE SECURITY AND CONTINGENCY PLANNING
      11. DISASTER RECOVERY AND BUSINESS CONTINUITY PLANNING
      12. CFO'S VIEW OF INFORMATION TECHNOLOGY: A CURRENT SURVEY
  10. Part Four: Management of Assets and Liabilities
    1. Chapter Twenty: Working Capital and Cash Management
      1. EVALUATING WORKING CAPITAL
      2. CASH MANAGEMENT
      3. CASH MANAGEMENT MODELS
      4. BANKING RELATIONSHIPS
      5. INTERNATIONAL CASH MANAGEMENT
    2. Chapter Twenty-One: Management of Accounts Receivable
      1. MANAGING RECEIVABLES
      2. INVESTMENT IN ACCOUNTS RECEIVABLE
    3. Chapter Twenty-Two: Inventory Management
      1. INVENTORY RECORDING AND CONTROL
      2. INVENTORY COSTS
      3. ECONOMIC ORDER QUANTITY
      4. REORDER POINT
      5. HOW TO FIND THE OPTIMAL SAFETY STOCK SIZE
      6. ABC INVENTORY CONTROL
      7. SERVICE BUSINESS
    4. Chapter Twenty-Three: Management of Payables
      1. ACCOUNTS PAYABLE SYSTEM
      2. MANAGING PAYABLES
  11. Part Five: Financing the Business
    1. Chapter Twenty-Four: Short-Term and Intermediate-Term Financing
      1. SHORT-TERM FINANCING
      2. INTERMEDIATE-TERM FINANCING
    2. Chapter Twenty-Five: Long-Term Financing
      1. TYPES OF LONG-TERM DEBT AND WHEN EACH SHOULD BE USED
      2. ISSUANCE OF EQUITY SECURITIES
      3. FINANCING STRATEGY
    3. Chapter Twenty-Six: Warrants and Convertibles
      1. WARRANTS
      2. CONVERTIBLE SECURITIES
    4. Chapter Twenty-Seven: Cost of Capital and Capital Structure Decisions
      1. INDIVIDUAL COSTS OF CAPITAL
      2. WEIGHTS
      3. EBIT–EPS APPROACH TO CAPITAL STRUCTURE DECISIONS
      4. ANALYSIS OF CORPORATE CASH FLOWS
      5. COVERAGE RATIOS
      6. CAPITAL STRUCTURE DECISIONS
    5. Chapter Twenty-Eight: Dividend Policy
      1. TYPES OF DIVIDEND POLICIES
      2. VARIABLES TO BE CONSIDERED
    6. Chapter Twenty-Nine: Financial Management of Multinational Corporations
      1. FINANCIAL MANAGEMENT ESSENTIALS FOR MNCs
      2. FOREIGN EXCHANGE MARKET
      3. FINANCIAL STRATEGIES
      4. TYPES OF FOREIGN EXCHANGE EXPOSURE
      5. INTEREST RATE PARITY
      6. PURCHASING POWER PARITY
      7. APPRAISING FOREIGN INVESTMENTS
      8. FINANCING
      9. ANALYSIS OF FOREIGN INVESTMENTS
  12. Part Six: Financial Analysis, Insurance and Legal Considerations, and Economics
    1. Chapter Thirty: Financial Statement Analysis
      1. FINANCIAL ANALYSIS ESSENTIALS
      2. BALANCE SHEET ANALYSIS
      3. POTENTIAL FOR BUSINESS FAILURE
      4. INCOME STATEMENT ANALYSIS
      5. MARKET VALUE RATIOS
      6. ANALYZING THE FINANCIAL STRUCTURE OF THE FIRM
      7. INDUSTRY CHARACTERISTICS INDICATIVE OF GREATER RISK
      8. CONSIDERATIONS IN FOREIGN OPERATIONS
    2. Chapter Thirty-One: Analysis, Evaluation, and Control of Revenue and Costs
      1. CONTROL REPORTS
      2. CONTROL OF COSTS
      3. PERFORMANCE MEASURES
      4. BUSINESS PROCESSES
    3. Chapter Thirty-Two: Insurance and Legal Considerations
      1. INSURANCE PROTECTION
      2. TYPES OF INSURANCE
      3. MEDICAL AND CATASTROPHE COVERAGE
      4. LIABILITY INSURANCE COVERAGE FOR CFOs
      5. BUSINESS LAW
    4. Chapter Thirty-Three: Reading Economic Indicators
      1. HOW CAN YOU KEEP TRACK OF THE ECONOMY WITH ECONOMIC AND MONETARY INDICATORS?
      2. HOUSING-RELATED MEASURES
      3. INDICES OF LEADING, COINCIDENT, AND LAGGING ECONOMIC INDICATORS
      4. OTHER IMPORTANT ECONOMIC INDICES
      5. MONETARY INDICATORS AND HOW THEY IMPACT THE ECONOMY
      6. UNDERSTANDING ECONOMIC DATA AND INDICATORS
      7. ECONOMIC INDICATORS AND STOCKS AND BUSINESSES
      8. ECONOMIC INDICATORS AND BOND YIELDS
  13. Part Seven: Liquidity and Treasury
    1. Chapter Thirty-Four: Corporate Investments in Securities
      1. CASH AND LIQUIDITY MANAGEMENT
      2. TERMS AND FEATURES OF BONDS
      3. OTHER FIXED INCOME INVESTMENTS
      4. MONEY MARKET PREFERRED STOCK
      5. PRIVATE EQUITY
      6. CURRENT TRENDS IN LIQUIDITY MANAGEMENT STRATEGY
  14. Part Eight: Taxation
    1. Chapter Thirty-Five: Tax Factors in Financial Decision Making
      1. WHAT SHOULD YOU KNOW ABOUT TAXES?
      2. GROSS INCOME
      3. DEPRECIATION
      4. AMORTIZATION
      5. TAX PLANNING
  15. Part Nine: Mergers and Acquisitions, Divestitures, Failure, and Reorganization
    1. Chapter Thirty-Six: Mergers and Acquisitions
      1. VALUATION
      2. FAIR MARKET VALUE OF NET ASSETS
      3. CAPITALIZATION OF REVENUE
      4. PRICE/EARNINGS RATIO
      5. SIMILAR BUSINESSES
      6. SALES OF STOCK
      7. COMBINATION OF METHODS
      8. SUCCESSFUL STRATEGY FOR MERGERS AND ACQUISITIONS
    2. Chapter Thirty-Seven: Divestiture
      1. WHY DIVEST?
      2. ASSET VALUATION METHODS
      3. PROFITABILITY METHODS
      4. MARKET-BASED COMPARISONS
      5. DISCOUNTED CASH FLOW ANALYSIS
      6. DIVESTITURE WITH UNCERTAINTY
    3. Chapter Thirty-Eight: Forecasting Corporate Financial Distress
      1. PREDICTION MODELS
      2. Z-SCORE MODEL
      3. APPLICATIONS
    4. Chapter Thirty-Nine: Failure and Reorganization
      1. BUSINESS FAILURE
      2. REORGANIZATION
    5. Chapter Forty: Valuation of Bonds and Stocks
      1. HOW TO VALUE A SECURITY
      2. HOW TO VALUE BONDS
      3. HOW TO VALUE PREFERRED STOCK
      4. HOW TO VALUE COMMON STOCK
      5. PRICE/EARNINGS RATIO APPROACHES
      6. OTHER PRAGMATIC APPROACHES
      7. THE BOTTOM LINE
    6. Chapter Forty-One: Financial Statement Analysis: Key Financial Ratios and Metrics for Nonprofits
      1. TREND ANALYSIS
      2. ANALYSIS OF THE BALANCE SHEET
      3. LIQUIDITY ANALYSIS
      4. APPRAISAL OF SOLVENCY, CAPITAL STRUCTURE, AND NET ASSETS (FUND BALANCE)
      5. EVALUATION OF THE STATEMENT OF ACTIVITIES
      6. PERFORMANCE METRICS
      7. SPOTTING POTENTIAL BANKRUPTCY AND AVOIDING FINANCIAL PROBLEMS
      8. CASE STUDY IN FINANCIAL STATEMENT ANALYSIS
  16. Appendix
  17. About the Authors
  18. Index