Course 5 - Classification, Debt and Equity (Video) (Course Id 1898)

This course is #5 in the 8-course series on Financial Reporting and Analysis offered by PRATTedu.  It is comprised of 6 videos, begins by discussing the concept of classification and its important role on the financial statements, and then moves into coverage of the company’s two primary forms of financing: debt and equity.  The financial statements and the footnotes of the companies featured in this course include General Motors, Volkswagen (an IFRS user), Amazon, Home Depot and Panera.

Course Learning Objectives

• Describe the key measurement issues addressed by the financial statements and explain how the current classification is used.
• Define the concept of a contingent liability and explain how contingencies are accounted for.
• Define what a bond is and explain how bond issuances are accounted for using the effective interest method.
• Explain how the effective interest method is used to account for bond investments and describe how management’s intention determines how changes in bond market values are accounted for.
• Describe the difference between short-term and long-term (financing and operating) leases and how both kinds of leases are reflected on the financial statements of the lessee.
• Summarize the shareholders’ equity section of the balance sheet and describe the transactions leading to each line item within that section