![3 Step DuPont Analysis for ROE | Financial Statement Analysis [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_163_0_0jpg.jpg)
The 3-step DuPont Analysis disaggregates return on equity (ROE) into 3 components: ROE = profit margin * asset turnover * equity multiplier Profit margin and asset turnover both pertain to the company’s operations, whereas the equity multiplier is a measure of leverage that pertains to the company’s financing decisions. Increasing the company’s leverage can increase ROE if the company is doing well, as the company can borrow money and earn a higher return than the cost of borrowing. In bad times, however, increased leverage can be a bad thing, as the company needs to continue making interest payments even if it is losing money. Thus, leverage makes good situations better and bad situations worse.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin
Resources for Accountants
![5 Step DuPont Analysis for ROE | Financial Statement Analysis [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_160_0_0jpg.jpg)
The 3-step DuPont analysis is helpful in that it breaks ROE into 3 components. However, the 3-step DuPont doesn’t fully isolate the effect of the firm’s financing decisions because it measures profit margin as net income divided by sales. The 5-step DuPont analysis corrects for this by using operating margin instead of profit margin and separately measuring the interest burden and the tax burden.The 5-step DuPont Analysis thus disaggregates return on equity (ROE) into 5 components: ROE = [(operating margin * asset turnover) – interest burden] * equity multiplier * (1 – tax rate)— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin
![ENGAGE 2021 [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_157_0_0jpg.jpg)
Categories
ENGAGE 2021 [Video]
Reimagine what is possible at ENGAGE 2021The world experienced several major developments in 2020, and the pace of change isn’t slowing down. Depending on your mindset, skill set and resources, this can either be a challenge or an opportunity. At ENGAGE 2021, you’ll learn how to reimagine your futureNo other event comes close to our breadth or depth of specialized programming. You’ll gain exclusive insights, develop practical skills, and network with your unique professional community across ten crossover tracks. aicpaengage.com
![Lease Classification for Lessee | IFRS 16 [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_154_0_0jpg.jpg)
IFRS 16 requires lessees to capitalize all leases, with two exceptions: (1) short-term leases (lease term of 12 months or less)(2) leases of low-value assets (fair market value of the leased asset is $5,000 or less at the beginning of the lease)If the lease meets either of these two exceptions, the lessee can choose not to capitalize the lease. It might seem like a company could avoid capitalizing a lease by simply entering into a one-year lease (to qualify for the short-term lease exception) and then renewing the lease each year. Such a company would still be required to capitalize the lease, however. This is because leases with a term of 12 months or less must be capitalized if (a) they have a renewal option and (b) it’s reasonably certain the lessee will exercise the renewal option.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin
![ENGAGE 2021 SPORTS AND ENTERTAINMENT [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_151_0_0jpg.jpg)
Reimagine what is possible at ENGAGE 2021The world experienced several major developments in 2020, and the pace of change isn’t slowing down. Depending on your mindset, skill set and resources, this can either be a challenge or an opportunity. At ENGAGE 2021, you’ll learn how to reimagine your futureNo other event comes close to our breadth or depth of specialized programming. You’ll gain exclusive insights, develop practical skills, and network with your unique professional community across ten crossover tracks. aicpaengage.com
![Earnings Management and Financial Statement Analysis [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_148_0_0jpg.jpg)
When analyzing a company’s financial statements, it’s important to remember that the company’s management may have manipulated the financial statements. The company may have engaged in aggressive revenue recognition or improperly capitalized expenses to inflate the company’s profit. Thus, detecting whether a company has engaged in earnings management (or financial statement fraud) is a critical aspect of financial statement analysis; don’t just take the numbers as given. Remember that a lot of assumptions, estimates, and decisions led to the creation of those numbers, so they should be viewed with a degree of skepticism.— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin
![ENGAGE 2021 – Diversity, Equity and Inclusion [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_145_0_0jpg.jpg)
Reimagine what is possible at ENGAGE 2021The world experienced several major developments in 2020, and the pace of change isn’t slowing down. Depending on your mindset, skill set and resources, this can either be a challenge or an opportunity. At ENGAGE 2021, you’ll learn how to reimagine your futureNo other event comes close to our breadth or depth of specialized programming. You’ll gain exclusive insights, develop practical skills, and network with your unique professional community across ten crossover tracks. aicpaengage.com
![Earnings Management Techniques [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_142_0_0jpg.jpg)
Companies employ a variety of methods for managing earnings (or committing accounting fraud). These earnings management techniques can be categorized as follows:(1) improper revenue recognition(2) changing the timing of events (e.g., selling an investment to book a gain)(3) improper capitalization (capitalizing routine expenses)(4) manipulating estimates (or changing accounting methods)(5) altering business decisions (e.g., postponing maintenance on equipment)(6) engaging in related-party transactions(7) engaging in mergers and acquisitions— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin
![Advise clients on ways to pay the IRS | Tax Section Odyssey [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_139_0_0jpg.jpg)
Providing clients with various secure tax payment options is a valued service that shouldn’t be overlooked. Join Kelly Ward, CPA, CGMA, EA, MBA, Principal – Robinson & Ward, P.C., to review available methods.
![Aggressive Revenue Recognition Techniques, Part 1 [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_136_0_0jpg.jpg)
Aggressive revenue recognition occurs when companies (a) prematurely recognize revenue or (b) recognize bogus sales. Here are some ways companies have prematurely recognized revenue:(1) channel stuffing(2) changing the dat of the fiscal year-end(3) holding the fiscal year open(4) recording revenue before shipment(5) shipping uncompleted products and assembling them elsewhere(6) recording revenue for a full shipment when only a partial shipment was made(7) announce a forthcoming price increase(8) recognizing all the revenue upfront for a long-term contract— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin
![AICPA Town Hall Series – May 6 Edition [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_133_0_0jpg.jpg)
AICPA Town Hall Series – May 6 Edition
![Aggressive Revenue Recognition, Part 2 [Video]](https://video.ednadigitalmarketing.com/wp-content/uploads/2021/06/mp_130_0_0jpg.jpg)
Aggressive revenue recognition occurs when companies (a) prematurely recognize revenue or (b) recognize bogus sales. Here are some ways companies have recognized bogus revenue:(1) shipping product the customer didn’t order(2) shipping empty boxes to customers(3) relaxing the credit policy and making sales to people who can’t pay(4) recognizing revenue when the product has been consigned(5) bill-and-hold sales(6) recognizing revenue for sales of nonexistent inventory(7) recognizing revenue for transactions that lack commercial substance(8) grossing up revenue (9) boomerang transactions— Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education accessible to all people.— SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS* http://eepurl.com/dIaa5z— LISTEN TO THE SCHEME PODCAST* Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725* Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc* Website: https://www.edspira.com/podcast-2/ — CONNECT WITH EDSPIRA* Website: https://www.edspira.com* Blog: https://www.edspira.com/blog/ * Facebook page: https://www.facebook.com/Edspira* Facebook group: https://www.facebook.com/groups/561316587899818//* Reddit: https://www.reddit.com/r/edspira* LinkedIn: https://www.linkedin.com/company/edspira— CONNECT WITH MICHAEL* Website: http://www.MichaelMcLaughlin.com* LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin * Twitter: https://www.twitter.com/Prof_McLaughlin* Facebook: https://www.facebook.com/prof.michael.mclaughlin* Snapchat: https://www.snapchat.com/add/prof_mclaughlin*Twitch: https://twitch.tv/prof_mclaughlin * Instagram: https://www.instagram.com/prof_mclaughlin*TikTok: https://www.tiktok.com/@prof_mclaughlin