TOOL E2
This tool provides a checklist to help you decide which accounting policies could be having a major impact on the financial trends you are analysing.
CHECKLIST
1. Balance Sheet – Assets
- Valuation of tangible fixed assets
- Depreciation / fair value
- Revaluation
- Capitalization of costs
- Valuation of intangibles
- Goodwill amortization / Fair value
- Prepaid costs
- Research & development
- Intellectual property
- Deferred tax
- Valuation of financial fixed assets
- Held to maturity
- Held for trading
- Held for sale
- Equity method
- Valuation of inventory / work in progress
- Receivables provisioning
2. Balance Sheet – Liabilities
- Provisions
- Operational
- Deferred tax
- Non-operational
- Off balance sheet commitments
- Operating Leases
- Pension obligations (where those are off-BS)
- Guarantees; Warranties
- Capex ; put options; other
- Off balance sheet contingent liabilities
- Financial
- Pensions
- Derivatives
- SPVs
- Share-based payments
- Minority Interests
3. Income Statement
• Income recognition
• Exceptional / extraordinary items
• Stock options
items also related to the Balance Sheet:
• Depreciation
• Provisions
• Operating leases
• Pension accounting
• Inventory valuation
• Capitalization of costs (incl. interest)
• Minority Interests
4. Cash Flow Statement
• Reporting of certain transactions under different CF Statement headings (IFRS)
• Consistent calculation of changes in working capital
• Accounting for operating leases, pension payments
• R&D, Financial charges, etc.
5. Other
• Basis of consolidation
• Continuing/discontinued operations
• Accounting period
• Post balance sheet events
• Changes in accounting policies
• Foreign currency translation
• Hedge accounting
