Financial Statements Analysis

Question 1

When to use current method e temporal?
What are the other forms to call those methods?

Answer 1

Question 2

Fx rates for temporal method and current rate method

Answer 2

Question 3

Fx rates for temporal method and current rate method

Answer 3

Current rate - current rate for all BS accounts (except for common stock), average rate for all IS accounts

Question 4

Fx rates for temporal method and current rate method

Answer 4

Question 5

Where does translation gain/loss stands for temporal and CR? How to calculate

Answer 5

Temporal - IS remeasurement gain. Difference btw net income vs. income before measurement gain

CR - BS CTA (cumulative translation adjustment)
Difference btw Assets and Liabilities and Equity

Question 6

Liquidity coverage ratio

Net Stable funding ratio

Answer 6

Question 7

Which currency method to use in case of a subsidiary located in a hyperinflationary country? In ifrs and USGAAP?

Answer 7

Question 8

What currency to use for dividends under CR method?

Answer 8

Question 9

What is :

Underwriting loss ratio

Expense ratio

Combined ratio

Soft//hard princing

Answer 9

High combined ratio > soft
Low combined ratio > hard

Question 10

What is the ranking of financial reports quality?

Answer 10

Question 11

What is the Altman Model?
What are variables

Answer 11

Question 12

3 factors to determine quality earnings

Answer 12

Question 13

Difference in CFO (USGAAP vs. IFRS)

Answer 13

Question 14

How to calculate debt YTM

Answer 14

Question 15

Calculate YTM for 6 years

Answer 15

Question 16

Risk premiums for private companies

Answer 16

Question 17

Differences for estimating Ke of emerging markets

Answer 17