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Corporate Finance Strategy & Standards


Adding Excel StrikeLines to Financial Reporting(S. Mandgi)


Just consider a hypothetical company whose Income statements are shown for three years and i have used excel strikelines for comparing the yearly performance from 2010 -2012. This took me less then 5 minutes and one look at the strikelines tells me that even though the sales have dipped, the profits after tax have increased irrespective of paying more corporate taxes since there has been a substantial drop in the expenditure. This is amazing. I can now use Excel Strikelines similarly for balance sheet comparisons and horizontal and vertical sizing. Keep the good work Microsoft.



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Financial Reporting Standards (IFRS) 
  1. International Financial Reporting Standards (IFRS) are a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.
  2. What is the IASB?
    The IASB is an independent accounting standard-setting body, based in London. It consists of 15 members from nine countries, including the United States. The IASB began operations in 2001 when it succeeded the International Accounting Standards Committee. It is funded by contributions from major accounting firms, private financial institutions and industrial companies, central and development banks, national funding regimes, and other international and professional organizations throughout the world. While the AICPA was a founding member of the International Accounting Standards Committee, the IASB's predecessor organization, it is not affiliated with the IASB. The IASB neither sponsors nor endorses the AICPA's IFRS resources website (www.IFRS.com).
  3. How widespread is the adoption of IFRS around the world?
    Approximately 120 nations and reporting jurisdictions permit or require IFRS for domestic listed companies, although approximately 90 countries have fully conformed with IFRS as promulgated by the IASB and include a statement acknowledging such conformity in audit reports.1 Other countries, including Canada and Korea, are expected to transition to IFRS by 2011. Mexico will require IFRS for all listed companies starting in 2012. Japan has introduced a roadmap for adoption that it will decide on in 2012 (with a proposed adoption date of 2015 or 2016) and is permitting certain qualifying domestic companies to apply IFRS from fiscal years ending on or after March 31, 2010. Still other countries have plans to converge their national standards with IFRS
Source of information : http://www.IFRS.com
The Overview in this website highlights the changes that occur in the Revenue Recognition process and Leases  for assets and liabilities and how they are now proposed to be represented in the balance sheet
Other important links
2>Wiki on IFRS with US GAAP comparison : http://wiki.ifrs.com/
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Recent update by SearchCIO.com on the importance of XBRL(eXtensive Business Reporting Language) for Statutory Financial Reporting in India. Click the header to read more.
Two of India’s regulatory bodies, the Securities Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA), have made it mandatory for Indian companies and Mutual Funds to report their financial statements using extensible business reporting language (XBRL), from the year 2011 onward.
Since XBRL reporting is now compulsory for all listed companies; their overseas subsidiaries; Indian companies with Rs 50 million and above paid-up capital; and, those with Rs 1,000 million or higher annual revenue, it’s likely to have a wide-scale impact on the Indian market.
This Manager’s Guide to XBRL compliance covers the following topics:


Excellent article published by McKinsey and company providing a different perspective , a shift from the traditional approach to a four cornerstone approach in managing corporate finance and building value for any organization using this approach It also covers mergers and aquisitions, divestitures, project analysis and executive compensation.
 Importance of Life Cycle Pricing


Another excellent article on the importance of life cycle pricing explaining how how products need to be priced across their life cycle. Great stuff from McKinsey


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