Re: Software for Financial Analyst
Your package expired! One of our account representatives should have just gotten back to you or will very shortly. Accounting for held-to-maturity is under the marketable securities section of the Accounting Bootcamp. The short answer for HTM securities is that it is not marked-to-market and the u... Your package expired!
One of our account representatives should have just gotten back to you or will very shortly.

Accounting for held-to-maturity is under the marketable securities section of the Accounting Bootcamp.

The short answer for HTM securities is that it is not marked-to-market and the unrealized gains and losses are not recognized on IS nor does it flow thru OCI.

Please let us know specific questions that you have so that we may better assist you. Read More

Valuation
1) Depending on the size and how material the NOLs are, you would value the NOLs separately. Please see other topics Q&A for discussion on NOL treatment for valuation and DCF purposes. 2) ST Debt is always considered debt, regardless of the use of the debt. Please see the topic entitled Treat... 1) Depending on the size and how material the NOLs are, you would value the NOLs separately. Please see other topics Q&A for discussion on NOL treatment for valuation and DCF purposes.

2) ST Debt is always considered debt, regardless of the use of the debt. Please see the topic entitled Treatment of Revolver as Debt for TEV in the M&A and LBO forum

3) Regarding grants - that gets a little too specific into grant accounting nuances. However, for DCF purposes, calculate the cash impact into your cash flow stream. We don't really care about accounting treatment so to speak. Thus, what we would want is to see a separate grant income on the FCFF. Whether that's already part of EBIT in your starting point or completely separate, it doesn't matter.

4) This is a tricky question and goes back subjectivity. The traditional accepted practice is actually to use TOTAL debt since Debt/Equity ratios are calculated based on actual capital structure. In the event of no debt and a minor cash balance, or the opposite extreme, no debt and a major cash balance, it begs the question of using NET debt. The idea of TOTAL debt stems from the entire capitalization of the company. In either case, we would frown upon adding back Interest Income since EBIT is meant to be before capital structure.

5) What is the context of the question? Future tax shield is NEVER added back to TEV from a valuation point of view. That is news to us. Even for purposes of an LBO, we don't do that. Again, NOLs are valued separately.

refer to this post:
How do you factor net operating losses (NOLs) in valuation? Read More

Re: Identifiable Intangible Assets
1) yes
2) deal-specific issues as advised by tax attorneys on each deal might occur

RE: Valuation
You would add back the PV of future unused NOL (not interest as you first indicated).

Calculate when the NOL shall be used in the future and discount that stream back. Note that in the USA you are limited by section 382 of the tax code.

Re: Identifiable Intangible Assets
1) You the man! You win! Thank you for digging that up. Forget naught that in addition to tax experts, you will have accountants on the job as well. The short answer is that you need to know enough, but you d... 1) You the man! You win! Thank you for digging that up.


Forget naught that in addition to tax experts, you will have accountants on the job as well.
The short answer is that you need to know enough, but you don't need to master this.
Why not? Because you will NEVER get the right answer because the company has a full year to finalize these numbers from the closing date of the deal. Read More