About This Chapter
Financial Valuation, Recognition & Measurement - Chapter Summary
In this chapter, you'll get to go over all of the concepts related to financial valuation, recognition, and measurement strategies. Our instructors provide insight on various accounting approaches, mathematical formulas, and standard methodologies. Each lesson addresses a specific topic, giving you a step-by-step overview full of definitions, keywords, and examples. After you complete the chapter, you should be prepared to do the following:
- Point out examples of asset approach valuation
- Review stock purchases accounting and the steps for issuing a stock
- Offer examples of dividend payments and cash dividends
- Show the accounting formula and methods for treasury stock
- Determine the difficulties in measuring equities, liabilities, and assets
- Establish the process and principles of revenue recognition
- Outline approaches to income measurement
- Evaluate IFRS as compared to GAAP
Some of the lessons available in this and other chapters are in the form of short articles. These lessons read like expertly crafted notes, but livelier and with well-thought-out examples. You can clearly see the major concepts for each lesson, as they are indicated by the larger headers. Words that are set off in bold or italics are usually vocabulary words, definitions, or key concepts. Visual aids, such as pictures, graphics, and formulas, further demonstrate these accounting concepts.
At the end of each lesson is a short lesson summary. If you feel you are familiar with these topics and you just need a quick recap, sometimes skipping down to the lesson summary is a good way to start out each lesson. After all, if you know the information, the lesson summaries will hit on all the key vocab words and concepts that you should already understand. If anything in the lesson summaries isn't familiar, you can always scroll up to re-examine the lesson materials.
1. Issuing a Stock & Accounting for Stock Repurchases
Corporations need money to help fund large purchases, like equipment and machinery, and to help with ongoing operations. In this lesson, you will learn about stock issuance and repurchases.
2. Cash Dividends & Dividend Payment
When a company decides to pay a dividend to shareholders, they first have to decide what type of dividend to pay. In this lesson, we'll examine the most common types of dividends and look at the timeline for cash dividend payments.
3. Treasury Stock: Definition, Accounting Method & Formula
Treasury stock is a very special category of stock within the business world. Read this informative lesson to find out exactly what treasury stock is and how business managers and executives use it within their companies.
4. Challenges in Measuring Assets, Liabilities & Equities
While it's pretty easy to figure out what is an asset and what is a liability, it is quite a bit harder to determine just how much each is worth. In this lesson, we look at the challenges of measurement in accounting.
5. What is Revenue Recognition? - Principles, Process & Examples
Did you know that when it comes to reporting revenue in the accounting records of a company, there is a certain time that it needs to be done? In this lesson, we are going to discuss the timing of revenue reporting and the Revenue Recognition Concept.
6. Income Measurement: Definition & Approaches
How much income is truly available? Is income defined by gross or net amounts? Or by some other measure? There are four approaches to accounting for income. This lesson will define income measurement and explain the four approaches.
7. Differences Between GAAP & IFRS
We live in an interconnected world, and doing business globally has become nearly commonplace. This impacts financial reporting and accounting standards. In this lesson, we'll cover differences between the US and International standards.
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Other chapters within the Certified Management Accountant (CMA): Study Guide & Test Prep course
- Financial Statements Overview
- Financial Strategic Planning
- Budgeting Concepts for Accountants
- Forecasting Techniques in Business
- Budgeting Methodologies in Accounting
- Annual Profit Planning
- Financial Projections
- Cost & Variance Measures in Performance Management
- Responsibility Centers & Reporting Segments
- Performance Measurement in Accounting
- Cost Measurement & Systems
- Overhead Costs
- Understanding Supply Chain Management
- Business Process Improvement
- Governance, Risk & Compliance in Accounting
- Accounting Systems Controls & Security Measures
- Accounting & Enterprise Information Systems
- Data Governance
- Technology-Enabled Finance Transformation
- Data Analytics
- Basic Financial Statement Analysis
- Profitability Analysis
- Financial Statement Special Issues
- Basics of Corporate Finance
- Capital Management Overview
- Corporate Restructuring
- International Finance Practices
- Business Decision Analysis
- Risk Management for Business
- Investment Decisions
- Accountant Professional Ethics
- Certified Management Accountant (CMA) Flashcards