EDNA Vlog

Episode #16 of GAAP Chats is all about earnings management, and the games companies play to “smooth” earnings. Join hosts Mike Walworth and Bob Laffler as they discuss this topic and how these games, even if they aren’t illegal, can get you into trouble with the SEC!

Here are 3 techniques companies use to decide whether to accept a project. 1. Calculate the project’s net present value (NPV). Forecast the project’s cash flows, discount them to their present value, and add them up. If the total is higher than zero, accept the project. 2. Calculate the project’s internal rate of return (IRR). This is the rate of return that would result in an NPV of zero. If the IRR is higher than the company’s required rate of return, accept the project. 3. Calculate the project’s payback period. This is how long it takes for the project to pay for itself. If you’ll get the money back within the company’s required payback period, accept the project. #shorts — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — 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/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com

In Episode #15 of GAAP Chats, hosts Mike Walworth and Bob Laffler discuss what lessons CPAs can learn from news stories surrounding Donald Trump and Clarence Thomas.

In this video, you will learn about the key differences between fundamental and technical analysis. #fundamentalanalysis #technicalnalysis #wallstreetmojo #financialmarket #analysis Chapters: 00:00 – Introduction 00:40 – Key differences 02:53 – Fundamental analysis – Advantages & disadvantages 04:00 – Technical analysis – Advantages & disadvantages 05:23 – Conclusion Key differences Fundamental analysis studies a company’s financial reports and statements, while technical analysis studies past price movements of stocks. Fundamental analysts look to determine the intrinsic value of stocks, while technical analysts look to time their entries and exit properly. Fundamental analysis is suitable for long-term activities like investing. However, technical analysis is more suitable for traders. (Explained in detail in the video) Fundamental analysis – Advantages & disadvantages A good thing about fundamental analysis is that it is quite analytical, involves little subjectivity, and considers many factors to conclude. In fundamental analysis, analysts have to make a lot of assumptions in the financial models. If they don’t consider several outcomes, all of this might go in vain. Also, there are lots of things that cannot be assumed, like election results, wars, changes in laws, etc., that can drastically affect outcomes. Technical analysis – Advantages and disadvantages Technical analysis also allows analysts to focus on one thing and not dabble into many things that can sometimes get overwhelming. But, as they say, the price is king. Technical analysis can also give the trader clear levels to enter and exit based on the patterns that were formed in the past and have played out in the present. But there’s a problem with technical analysis too. Traders can use so many patterns and indicators that it often leads to analysis paralysis. This will be all for this video. Subscribe to the channel, like the video, and share it with others. This will be all for this video. Subscribe to the channel, like the video, and share it with others. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo

The present value of a perpetuity (an infinite stream of cash flows) is calculated by dividing the periodic cash flow by the discount rate: present value of perpetuity = cash flow / discount rate But this assumes that the first cash flow occurs at the end of this period. What if the first cash flow occurs today? When the first payment in an infinite stream of payments occurs today, this is called a perpetuity due. To find the present value of a perpetuity, you simply add the first cash flow (the one that occurs today) to the present value of the regular perpetuity. present value of perpetuity due = (cash flow / discount rate) + cash flow Thus, if I promise to give you $100/year forever with the first payment starting today, and your discount rate is 5%, the present value of this infinite stream of cash flows would be $2,100. present value of perpetuity due = ($100 / 0.05) + $100 present value of perpetuity due = $2,100 You could also calculate the present value of a perpetuity as follows: present value of perpetuity due = (cash flow / discount rate) * (1 + r) The above formula shows that the present value of a perpetuity due is simply the present value of a regular perpetuity times one plus the discount rate. 0:00 Introduction 0:10 Example of regular perpetuity 0:36 Critical assumption 0:46 Perpetuity due 1:11 Example of perpetuity due 2:00 Alternative formula 2:26 Relationship between perpetuity and perpetuity due — Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world. — SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: • A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING • A 44-PAGE GUIDE TO U.S. TAXATION • A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS • MANY MORE FREE PDF GUIDES AND SPREADSHEETS * http://eepurl.com/dIaa5z — SUPPORT EDSPIRA ON PATREON *https://www.patreon.com/prof_mclaughlin — GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com — 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/ — GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin — ACCESS INDEX OF VIDEOS * https://www.edspira.com/index — CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira — CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin — ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/ * https://michaelmclaughlin.com