Module 3 · FRA

Analyzing Balance Sheets

EN: Accounting equation, classification, marketable securities, and common-size analysis.
VN: Phương trình kế toán, phân loại tài sản/nợ, chứng khoán đầu tư, phân tích common-size.

1. Accounting Equation Core

About: A = L + E. The most fundamental identity in accounting. Every transaction must keep both sides balanced. Foundation of double-entry bookkeeping.Tóm tắt: A = L + E. Đẳng thức kế toán nền tảng. Mọi giao dịch phải giữ cân bằng.

\[ \text{Assets} = \text{Liabilities} + \text{Equity} \]

Practice problem

Assets = $800M, Equity = $300M. Compute Liabilities.

Show solution

L = A − E = 800 − 300

Liabilities = $500M

2. Common-Size Balance Sheet Core

About: Express each line as % of total assets. Lets you compare firms of different size and the same firm across time. Reveals shifts in capital structure or asset mix.Tóm tắt: Biểu thị mỗi dòng theo % tổng tài sản. So sánh doanh nghiệp khác cỡ và theo thời gian.

\[ \text{Common-size \%} = \frac{\text{Line item}}{\text{Total assets}} \times 100\% \]

Allows comparison across firms of different size and against industry averages.

Practice problem

Total assets = $1,000; Cash = $50; AR = $200; Inventory = $250; PP&E = $500. Compute common-size %.

Show solution

Cash 5%, AR 20%, Inv 25%, PP&E 50%

Verifies sum = 100% of total assets.

3. Classification of Assets Concept

About: Current (realized within 1 year) vs non-current. Operating (used in core business) vs financial. Classification affects ratios (current ratio) and analyst adjustments.Tóm tắt: Ngắn hạn (≤1 năm) vs dài hạn. Operating vs financial. Ảnh hưởng các ratio và điều chỉnh.

Current Expected to be realized within 1 year (cash, AR, inventory, prepaid).
Non-current PP&E, intangibles, goodwill, long-term investments.
Operating Used in core business.
Financial Marketable securities, investment property.

4. Marketable Securities — Three Classifications Core

About: IFRS 9 / US GAAP — Trading (FVTPL), AFS (FVOCI for debt), HTM (amortized cost). Classification drives where unrealized G/L flow (P&L vs OCI vs nowhere).Tóm tắt: Trading (FVTPL), AFS (FVOCI), HTM (amortized cost). Quyết định G/L chưa thực hiện đi đâu.

IFRS 9 / US GAAP

Trading Held for short-term trading — fair value through P&L (FVTPL).
AFS (US GAAP debt) — fair value, unrealized G/L through OCI.
HTM Held-to-maturity debt — amortized cost.

5. Goodwill Core

About: Premium paid above fair value of net identifiable assets in an acquisition. Not amortized — tested annually for impairment. Internally-generated GW NOT recognized.Tóm tắt: Phần trả thêm khi M&A. Không khấu hao — test impairment hàng năm. GW tự tạo không được ghi nhận.

\[ \text{Goodwill} = \text{Purchase price} - \text{FV of identifiable net assets acquired} \]

Not amortized — tested annually for impairment. Internally generated goodwill is NOT recognized.

Practice problem

Acquirer paid $500M for a company with FV of identifiable net assets = $380M. Compute goodwill.

Show solution

GW = 500 − 380

Goodwill = $120M

Practice problem Practice

Practice problem

Total assets = $500M, total liabilities = $300M. Inventory is $80M. Compute equity and inventory as % of total assets.

Show solution

Equity = 500 − 300 = 200

Inventory % = 80 / 500

Equity = $200M; Inventory = 16% of total assets.