Questions tagged [accounting]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
8
votes
2answers
2k views

Non-SQL methods for high-frequency accounting?

Does anyone know of any prior art for non-SQL data structures for high-frequency accounting, whether client, broker, or exchange-side? I'm thinking specifically of the problem of booking individual ...
6
votes
7answers
2k views

Do quants need to know Accounting?

Do quants need to know Accounting? In my school's undergrad Quant program, we had Financial Accounting and Managerial Accounting, which were listed as prerequisites for our undergrad Finance subjects....
6
votes
1answer
3k views

How would I value a perpetual bond with an embedded option?

I am trying to work out how to value the following transactions. It should be straight forward, since it breaks down into a series of well known instruments, yet I am not sure how to evaluate it: ...
2
votes
2answers
1k views

what data sources are useful for obtaining financial statement data of listed companies NYSE and NASDAQ?

Exactly, I need balance sheet, income statement, cash flow statement, stock market, bankruptcy situation, fraud situation and corporate governance data of companies in USA. Thanks beforehand,
2
votes
3answers
265 views

How are referenced asset gains routed in a credit derivative?

Lets assume for the sake of the example that we are talking about a Total Return Swap. The flow diagram is something like this. Lets assume the Payer in this instance is a Hedge Fund, and the ...
2
votes
1answer
865 views

Exclusion of Utilites and Financials in Magic Formula

In Joel Greenblatt's magic formula, see https://en.wikipedia.org/wiki/Magic_formula_investing, why are utilities and financials excluded? What is the reasoning behind this?
2
votes
1answer
416 views

Why is issued shares less than outstanding shares

We know that issued shares = outstanding shares + treasury shares. So issued shares must be greater than treasury shares by definition. However, Starbucks' fiscal 2014 From 10-K reports "Common ...
2
votes
0answers
27 views

Why does the SEC occasionally omit ticker information for a company?

My question is fairly simple: Why does the SEC occasionally omit ticker information for a company? For example, a well behaved company like Darden Restaurants (DRI) looks like this. The ticker is ...
2
votes
0answers
60 views

Enron - RhythmsNet hedge

I am reading "Power Failure: The Inside Story of The Collapse of Enron" By Mimi Swartz, Sherron Watkins. In the book, the following transaction is described: Enron had USD200mn worth of futures on ...
1
vote
2answers
99 views

Question on earning per share

For 2009, Flamingo Products had net income \$ 1,000,000. At 1 January 2009 there were 1,000,000 outstanding. On 1 July 2009,the company issued 100,000 new shares for \$ 20 per share. The company paid \...
1
vote
1answer
9k views

Why subtract increase in net working capital to get Free Cash Flows?

Here's the formula for free cash flows I'll be referring to: FCF = EBIT*(1-Tax Rate) + Depreciation and Amortization – Capital Expenditures – Increases in Net Working Capital (NWC) If you have an ...
1
vote
2answers
220 views

Why debit and credit impact differently on different type of accounts?

Here is a table that I found in one of the accounting book: ...
1
vote
2answers
4k views

Why is “Deferred revenue” a non-monetary liability?

Why is "Deferred revenue" treated as a non-monetary liability during temporal method FX translation while "Accrued Expenses" is treated as a monetary liability?
1
vote
1answer
228 views

AT1 ratio, Core T1 ration and CET1 ratio

I would like to first know the precise definition of each one of those 3 ratios as well as there differences. On the web there is bit of a mess on the explanations. I could not find a simple and clear ...
1
vote
1answer
77 views

How to attribute income that incurs a double liability in a P&L?

I'm a developer writing a system for a startup. Without giving away too much of the business model, here are the basics of how it works: The web site has two forms of "currency": tickets and credits....
1
vote
1answer
78 views

Balance Sheet and income statement inconsistency across tickers

I assumed the SEC filings for balance sheet or income statement should follow a standard format across companies. If that is the case, why is some important fields absent for certain companies? For ...
1
vote
1answer
52 views

Accounting profitability [closed]

Can anyone please help me how to solve this problem? Grocery Freshly want to open a new store. They expect an initial cost of 30,000 to buy the property in which the store will be. After ...
1
vote
2answers
763 views

Original Fundamental Accounting Data (Not Ratios)

Where do I get original fundamental accounting data from income statement, balance sheet and cash flow statement, like Sales/Revenue, Gross Income, EBIT, Operating Income, Cash & Short Term ...
1
vote
1answer
79 views

What is the difference between volatility and dispersion in finance?

I am confuse whether the volatility and dispersion is same or not because are use to measure the risk associated with asset. Even if they are different than what is the relationship between, if exist.
1
vote
2answers
80 views

How do I know what my portfolio weight constraints are given to me by my broker?

I have started exploring portfolio optimization results that pop out when I don’t constrain the weights to sum to 1. For instance, in a dollar-neutral portfolio, the weights sum to 0. Also, some ...
1
vote
1answer
38 views

How to calculate a weighted payback rate and period?

I have a client who borrows and repays money at different times. Assume the following example What is the correct way to calculate the repayment rate and more importantly, the time until repayment (i....
1
vote
1answer
137 views

What exactly does after tax “charge” mean?

My question isnt about the after tax part, but what is meant by "charge" as in "GE took a $6.2 billion after-tax charge". I get that GE would like to get rid of their LTC (Long Term Care Insurance) ...
1
vote
1answer
737 views

Lease Accounting / FX Embedded Derivatives: How to Value Floor / Cap Optionality Features

Suppose you have a lease agreement where the functional/domestic currency is RUB and the currency on which the lease is written USD. Let $S$ be the USD/RUB exchange rate (# of rubles per 1 dollar). ...
1
vote
0answers
219 views

International Baccalaureate - Balance Sheet Format [closed]

I would like to transform Tesla's balance sheet (https://www.nasdaq.com/symbol/tsla/financials?query=balance-sheet) into the IB-balance sheet format (see below). In the current assets section, is it,...
1
vote
0answers
13 views

Estimate the off balance sheet exposures of a banking book, based on limited data

I am doing an analysis on Off Balance sheet items on a bank. Only data I have is authorized amount and outstanding balance for all the loans the bank currently has. Can I simply take the difference ...
1
vote
1answer
220 views

Time-Value of money exercise problem. Any advice on how to solve?

Problem An investor will receive $365 at the end of each year for thirteen years. The first payment will be received four years from now. Given that the interest rate is 3%, the present value of this ...
0
votes
1answer
201 views

Question on EBIT Calculation [closed]

I am trying to calculate the EBIT and a few other financial calculations from the following Income Statement. What numbers would I have to correspond in order to calculate EBIT or EBITDA here? ...
0
votes
1answer
168 views

How does a Short position impact the PnL?

I have several activity records which include several transaction types: buy, sell, short, <...
0
votes
1answer
34 views

How can I determine whether a UK company trades internationally

Can anyone think of ways to determine whether a UK company trades internationally? I have seen that possibly if the have 'GB' at the start of their VAT number. Can any financial ratios signal this?
0
votes
1answer
3k views

Why does depreciation not show up in my income statement?

I'm looking at a company's 10-K which gives me the following line items: Income statement Net sales Cost of goods sold Gross profit Selling, general and administrative expenses Operating income ...
0
votes
1answer
190 views

short selling with collateral accounting

I don't know how the accounting works for short selling with collateral: For example if a stock is \$10 a share and turn out to be $15 a share a week later. At time 0, you borrow and sell 10 shares ...
0
votes
0answers
15 views

Cost basis for Month-to-date unrealized and realized p&l calculation

how do you calculate Month-to-date unrealized and realized P&L/performance? What is the cost basis for both? Should the cost be reset based on the end-of-previous month mark to market or the ...
0
votes
0answers
33 views

Modeling short-selling accounts

I am having trouble modeling short selling mechanics in my backtesting system. When I sell stock short, I make the following changed to account variables: Credit Balance += 200% of the stock value ...
0
votes
0answers
17 views

How to calculate the revenue yield?

Origination fee is charged as 3.0 % of average funded loan size. How to calculate the revenue yield in the table below?
0
votes
1answer
107 views

How to Calculate ROIC (Return on Invested Capital)

I am trying to calculate ROIC based on data I receive from Yahoo Financials. A comprehensive output of what I receive from the site is below, which elements of this can I put together to get ROIC? <...
0
votes
0answers
33 views

How do CCAR models come together to create a prediction of capital adequacy?

I have a question about the Comprehensive Capital Analysis and Review (CCAR) process for US banks. I understand that the PPNR (Pre-Provision Net Revenue) Models and Loss models can create a predicted ...
0
votes
1answer
125 views

Cash Flow Hedge Accounting

In the context of hedging a fixed rate foreign currency liability with a receive-fixed pay-fixed CCS is known that in order to assess the effectiveness of a cash flow hedge the ratio of the change in ...
0
votes
0answers
53 views

How do analyst on Wall Street forecast whole balance sheet

I am always curious as to how people on wall street forecast every single item on a company's balance out up to 3 years. It seems to me just pure false accuracy in order to come up with a price target....
0
votes
0answers
25 views

Why does the difference between two year's retained earnings not add up?

I am looking at a company's 10-k filing history for my valuation. I have collected figures for retained earnings, net income and ...
0
votes
1answer
38 views

Compound Discounting(?)

I am a programmer interning at a small contract furniture company. This company receives multiple discounts from the manufacturers, and I am trying to calculate the end discount. For example, the ...
0
votes
1answer
428 views

Negative Cost of Debt

I got the the interest expense from Microsoft, it is in negative: -2.73 billion (source: MSFT Annual Report). Does this mean Microsoft is receiving interest instead of paying it? If my cost of debt ...
-1
votes
1answer
106 views

Financial statement and stock market data [duplicate]

How is it possible to have access to Datastream, Bloomberg, Wrds database? Is there another free database with long historical data? In fact, I need long time series data belonging to NYSE and NASADAQ ...
-2
votes
1answer
80 views

Who is in debt when a bank investments in commercial paper? [closed]

If a company issues commercial paper and the bookkeeper, bank A, receives a buy order from bank B, in which bank B creates credit to buy the commercial paper, does the company has a credit in bank B ...