Fellicia Ikko Permata Jelita

(13/347672/EK/19431)

Disclosures of and Analyzing

Employee Stock Options
Look at Exhibit 6.11 on page 374-375

INTEREST COSTS
Interest: Compensation because of
money usage; It exceeds the borrowed
amount.
Is being affected by interest rate,
principal, and time.

Computation
Nominal rate paid on debt financing
Complicated when company issues:
- convertible debt: should consider
features of both.
- debt with warrants: warrants
proceed is accounted as paid-incapital.

Capitalization
Is part of constructed or produced
assets for companys own use.
Objectives:
- Accurate measurement of asset
acquisition cost
- Acquisition cost amortization against
revenues that generated by asset.

Analyzing
Controversial
Disputable
- There are variations in practice.

INCOME TAXES
Accounting for Income Taxes
- Temporary and Permanent Differences
- Deferred Taxes
- Its nature
- Its accounting

Disclosures
Analysis
-

Financial Statement Adjustments

PV-ing Deferred Tax
Forecasting Future Income and Cash Flows
Analyzing Permanent and Temporary Differences
Earnings Management and Quality