Forum Search: capital markets
Re: Off Balance Sheet Capital Commitment
To clarify then, this ODM company's commitment is to construct building/factory in future? Is this a one-time commitment or ongoing? If ongoing, we would question the need to capitalize since again, part of operations. BUT an ODM doesn't construct buildings/factories EVERY year (after growth phas... Read More
To clarify then, this ODM company's commitment is to construct building/factory in future? Is this a one-time commitment or ongoing? If ongoing, we would question the need to capitalize since again, part of operations. BUT an ODM doesn't construct buildings/factories EVERY year (after growth phas... Read More
Re: Off Balance Sheet Capital Commitment
Got it.... I guess if capitalize in PP&E then we don't depreciate it. Since like you said the factory/building is not built yet.
Got it.... I guess if capitalize in PP&E then we don't depreciate it. Since like you said the factory/building is not built yet.
Re: Off Balance Sheet Capital Commitment
Correct - this is a pro forma adjustment.
However, future depreciation and debt paydown should be incorporated in your projections (again, not in historicals).
Correct - this is a pro forma adjustment.
However, future depreciation and debt paydown should be incorporated in your projections (again, not in historicals).
R&D Expense and Capital
Hi WST, I am analyzing an ODM TECHNOLOGY company and trying to build an integrated projection. From reviewing its financial reports, it has, say, $8m of R&D expenses on the income statement and $12m of investment cash outflow of Product Development; it also has an intangible asset account for P... Read More
Hi WST, I am analyzing an ODM TECHNOLOGY company and trying to build an integrated projection. From reviewing its financial reports, it has, say, $8m of R&D expenses on the income statement and $12m of investment cash outflow of Product Development; it also has an intangible asset account for P... Read More
Re: R&D Expense and Capital
Based on the wording you provided and accounting rules (which are ever changing especially with IFRS differences), it seems as if the $8MM on the IS relates to current period R&D. Whereas the $12MM (presumably in CFI) is capitalized, of which, only a PORTION of that constitutes the $8MM expensed... Read More
Based on the wording you provided and accounting rules (which are ever changing especially with IFRS differences), it seems as if the $8MM on the IS relates to current period R&D. Whereas the $12MM (presumably in CFI) is capitalized, of which, only a PORTION of that constitutes the $8MM expensed... Read More
Re: R&D Expense and Capital
Got it. Just did the projection. What I did was taking a % of total sales as R&D expenditure and split that into R&D expenses and the rest as cash outflow for investing activities and capitalize the cash outflow on the balance sheet. No surprise the operating profit margin dropped but I t... Read More
Got it. Just did the projection. What I did was taking a % of total sales as R&D expenditure and split that into R&D expenses and the rest as cash outflow for investing activities and capitalize the cash outflow on the balance sheet. No surprise the operating profit margin dropped but I t... Read More
Re: R&D Expense and Capital
projecting R&D expenditure as % of total sales sounds legit to us. but how did you justify the % split you used for expense vs capitalize portion? that is pretty important. AND then don't forget, you need to expense the capitalized portion. keep in mind, if the company is at run-rate (doesn't ... Read More
projecting R&D expenditure as % of total sales sounds legit to us. but how did you justify the % split you used for expense vs capitalize portion? that is pretty important. AND then don't forget, you need to expense the capitalized portion. keep in mind, if the company is at run-rate (doesn't ... Read More
Re: R&D Expense and Capital
yep... got to amortize them.... (almost forgot...)
yep... got to amortize them.... (almost forgot...)
Re: Problem with choose and average formulas
At the risk of not answering your question, please re-direct yourself to our circular reference module, including with your online access login. Alternately, go to our youtube channel: www.youtube.com/wstss and do a sea... Read More
At the risk of not answering your question, please re-direct yourself to our circular reference module, including with your online access login. Alternately, go to our youtube channel: www.youtube.com/wstss and do a sea... Read More
It's an ODM technology company contemplating a public new shares issue. The purpose of the exercise is to evaluate the fair market value of the company to decide whether or not to subscribe to the offering. So if to capitalize the off balance sheet building construction commitment, what would the ... It's an ODM technology company contemplating a public new shares issue. The purpose of the exercise is to evaluate the fair market value of the company to decide whether or not to subscribe to the offering. So if to capitalize the off balance sheet building construction commitment, what would the accounting entry be? Do we credit the commitment amount in the liabilities section and what would be the debit item? Many thanks. Read More