财务报表分析与证券估值全套配套课件英文PPT中文PPT案例教学建议Chap009.ppt 29页

CHAPTERNINEMcGraw-Hill/IrwinCopyright©2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved. Chapter9Preparedby:StephenH.Penman–ColumbiaUniversityWithcontributionsbyNirYehuda–NorthwesternUniversityMingcherngDeng–UniversityofMinnesotaPeterD.EastonandGregoryA.Sommers–NotreDameandSouthernMethodistUniversitiesLuisPalencia–UniversityofNavarra,IESEBusinessSchool9-2 WhatYouWillLearnfromthisChapterHowstatementsofshareholders’equityaretypicallylaidoutWhyreformulationofthestatementisnecessaryWhatisreportedin“othercomprehensiveincome”andwhereitisreportedWhat“dirty-surplus”itemsappearinthestatementofshareholders’equityHowstockoptionsworktocompensateemployeesHowstockoptionsandothercontingentequityclaimsresultinahiddenexpenseHowmanagementcancreatevalue(andlosses)forshareholderswithsharetransactionsHowaccountinghideslossesfromsharetransactions9-3 GAAPStatementofShareholders’Equity___________________________________________________________________Openingbookvalueofequity(common,preferred,andnoncontrollingequity)+Netsharetransactionswithcommonstockholders+Capitalcontributions(paidincapitalfromshareissues)-Sharerepurchases(intotreasurystockoragainstpaid-incapital)+Netsharetransactionswithpreferredshareholders+Capitalcontributions(shareissues)-Shareredemptions+Changeinretainedearnings+Netincome–includingnoncontrollinginterestincome-Commondividends-Preferreddividends-Somesharerepurchases+Accumulatedothercomprehensiveincome+Earningsrestatementsduetochangeinaccounting+IncreaseinequityfromissuingstockoptionsClosingbookvalueofequity(common,preferred,andnoncontrollingequity)9-4 TheGoverningAccountingRelationBookvalue,beginningofperiod+Comprehensiveincome-Netpayouttoshareholders=Bookvalue,endofperiod9-5 ReformulatedStatementofCommonStockholders’Equity9-6 Reformulation:TheStepsRestatebeginningandendingbalancesforitemsincorrectlyincludedinorexcludedfromcommonequity–Preferredstock–Noncontrollinginterestreportedwithinequity+DividendspayableCalculatenettransactionswithshareholdersCashdividends+sharerepurchases–shareissues(Cashdividends=Dividendsdeclared–changeindividendspayable)Calculatecomprehensiveincome=Netincome+“Othercomprehensiveincome”–Earningsfromaccountingchanges–Preferreddividends–Noncontrollinginterestinearnings–Hiddendirty-surpluslosses9-7 TheGAAPStatement:Nike,Inc.,20109-8 Nike:TheReformulatedStatementCashdividends=Dividendsdeclared–Changeindividendspayable=$514.8–(130.7–121.4)=$505.59-9 Dirty-SurplusAccounting:TheMostCommonItemsCurrencytranslationgainsandlossesUnrealizedgainsandlossesonsecurities(debtandequity)Gainsandlossesonderivativeinstruments9-10 DirtySurplusAccountingintheUS:ACompleteList9-11 FASBStatementNo.130RequiresthereportingofcomprehensiveincomeinoneofthreewaysWithintheincomestatementInseparatestatementWithintheequitystatementMostfirmschoosethelastalternativeEffective2012,onlythefirsttwooptionswillbeallowed;samewithIFRS9-12 AccountingClinicIII:SummaryTheaccountingformarketablesecurities(debtsecuritiesandequitysecuritieslessthan20%interest)Tradingsecurities-marktofairvalue-bookrealizedandunrealizedgainsandlossestotheincomestatementAvailable-for-salesecurities-marktofairvalue-bookrealizedgainsandlossestoincomestatement-bookunrealizedgainsandlossestoequityHeld-to-maturitysecurities-carryathistoricalcost-bookrealizedgainsandlossestoincomestatementFairvalue:Level1,2,and39-13 RatioAnalysisPayoutandRetentionRatios9-14 RatioAnalysis(continued)ShareholderProfitabilityRatioGrowthRatios9-15 HiddenDirtySurplusShareholderslosewhensharesareissuedatlessthanthemarketprice(e.g.exerciseofoptions)Thisloss,however,isnotrecordedasexpenseunderGAAPandIFRS.Whatisthenatureofthisloss?Ifoptionsarepartofacompensationpackage,thislossisanemployeecompensationexpense.Iffromaconversionofabond,preferredstockorwarrants,thelossisafinancingexpense.Whatistheamountoftheloss?Marketprice-exerciseprice.9-16 FASBStatementNo.123RStatement123Rrequiresanexpensetoberecognizedatoptiongrantdate,equaltothevalueoftheoptionatthatdateUpto2006,proformanetincome,includingtheexpense,wasreportedinfootnotes.Theexpensemustnowbereportedintheincomestatement,allocatedovertheserviceperiod.Noadditionalexpenserecordedastheoptionmovesintothemoneyoratexercisedate.Firmsrecordataxbenefit(fornon-qualifiedoptions)atexercisedate,andcreditthistoshareholders’equity.IFRS2hassimilarrequirementsAccountingClinicIVcoversstockoptionaccounting9-17 MeasuringtheLossfromExerciseofStockOptionsMethod1(Nike)Expenseisimpliedfromthetaxbenefit*:(Taxrateis36.3%)9-18 MeasuringTheLossfromExerciseofStockOptions:Method2(Nike)Calculatedifferencebetweenaveragestockpriceandexerciseprice:*Fromequitystatement($379.6)lesstaxbenefitof$58.5thathasbeenaddedtoissuepriceinequitystatementUsethismethodwhentaxbenefitisnotreported,orforincentiveoptions(wherethereisnotaxbenefit).9-19 ShouldLossfromExerciseofOptionsbeIncludedinComprehensiveIncome?Inprinciple,YESBut….asgrantdateexpensehasalreadybeenrecorded,wewouldbedoublecountingtosomeextentTwoalternatives:1.-UnravelGAAPaccountingandrecognizejusttheexercisedateexpensethathasnotalreadybeenrecognizedinprioryearsatgrantdates(toodifficult!)2.-Recognizelossonexerciseofstockoptions,butreduceby“stock-basedcompensation”recognizedinthecurrentyear.Alternative2isanexpediency,thoughnotstrictlycorrect.9-20 Is“Stock-basedCompensationEquity”orisitLiability?It’saliability!Shareholdershavea(contingent)liabilitytoissuestockatlessthanmarketprice.YetGAAPandIFRStreatitasequityGAAPandIFRSmakeitlooklikeissuingstockoptionsincreasesequity.Howcan“payment”forwagesincreaseequity?But…unravelingtheGAAPaccountingistoodifficult.Sotreatstock-basedcompensationasanetagainstlossorexerciseofstockoptions(asanexpediency).9-21 TheReformulatedEquityStatement:IncludingLossonExerciseofStockOptions9-22 TheOptionOverhangTheoptionoverhangisthevalueoftheoptionsnotyetexercised.This(contingent)liabilityistheestimateoftheamountofvaluethatshareholderswillgiveupatexercisedate.Aroughestimateoftheoptionoverhang:MarketvalueofstocktobeissuedXXXStrikepriceofoptionsXXXTaxbenefit(ifany)XXXContingentliabilityforoptionsXXX(Thisisafloorvaluation:ignoresoptionvalue)9-23 TheOptionOverhang:NikeInc.Attheendof2010,Nikehad36.0millionemployeestockoptionsoutstandingataweightedaverageexercisepriceof$46.60.Nike’sstocktradedat$72.38atfiscal-yearend.FloorvaluationofNike’soverhang:(Inmillions)Marketpriceofshares:36.0×$72.38$2,606Exerciseprice:36.0×$46.601,678928Taxbenefit(at36.3%)337Contingentliability591(Thisis$1.22pershare)9-24 HiddenLossesonPutOptions:DellInc.Fromthe2002equitystatement(seeChapter2):TheLoss:9-25 PutOptionOverhang:DellAttheendof2002,Dellhad51millionputoptionsoutstandingatastrikepriceof$45.Themarketpriceoftheshareswas$25.Estimateofoptionoverhang:Marketpriceofshares$25Strikeprice45Losspershare$20×51mill.Overhang$1,020mill.Thisoverhangisacontingentliabilitythathasnotbeenbookedtothebalancessheet(Theestimateisafloor:nooptionvalueadded)9-26 LossesonConvertibleSecuritiesLoss=Marketpriceofcommonissued-BookvalueofconvertiblesurrenderedThemarketvaluemethodvs.thebookvaluemethodThemarketvaluemethodrecognizeslossesonconversionThebookvaluemethodrecordsthesharesatthebookvalueoftheconvertiblesecurities,withnolossrecognizedAlmostallfirmsusethebookvaluemethod.9-27 AccountingQualityWatchAccountingItemTheQualityProblemDividendspayableGAAPtreatsdividendspayableasaliability.Rather,itispartofshareholders’equity.Shareholdershaveaclaimtothesedividendsthathavebeendeclaredbutnotpaid.Theydonotowethemtoothers.UnrealizedgainsandUnrealizedgainsandlossesonavailable-for-saledebtandequitylossesonsecuritiessecuritiesarereportedaspartofothercomprehensiveincomeintheequitystatementratherthanintheincomestatement.Thusthefullperformanceofaninvestmentportfolioisnotreportedintheincomestatement.Worse,asfirmsreportrealizedgainsandlossesintheincomestatement,theycan“cherrypick”gainsintotheincomestatement(andearningspershare)bysellingsecuritiesthathaveappreciatedinvaluewhileholdingthoseonwhichtheyhaveexperiencedlossesandreportingthoseunrealizedlossesintheequitystatement.TranslationgainsThegainorlossfromholdingassetsandliabilitiesinforeigngainsandlossescurrencieswhenexchangeratechangeisnotrecognizedintheincomestatement.(Theeffectisbookedtoequityintheequitystatement,bypassingtheincomestatement.)PreferreddividendsPreferreddividendsaretreatedasadistributionofequityratherthanacostto(common)shareholders.•MinorityInterestTheclaimontheminorityshareholdersareincorrectlyincludedintheshareholders’equity(continued)9-28 AccountingQualityWatch(Cont.)StockcompensationGAAPrecognizesdeferredcompensationfromgrantofstockcreditstoequityoptionsasacredittoequity,asifshareholders’equityincreasebycompensatingemployees.Thisisaliability–togiveupvalueontheexerciseofoptions–notanincreaseinequity.Grant-datestockGAAPrecognizesstockoptioncompensationatoptiongrantdate.optionaccountingHowever,theexpense(totheshareholder)isincurredatexercisedateassharesareissuedforlessthanmarketprice.Ifgrantedoptionsarenotexercised,GAAPoverstateswagesexpense.Ifoptionsareexercised,GAAPtypicallyunderstateswagesexpense.AccountingforGAAPdoesnotreportthelosstoshareholderswhenwarrantsandwarrantsandoptions(callandput)optionsonthefirmsstockareexercisedandsharesareissuedorrepurchasedatpricesdifferingfrommarketprice.AccountingforGAAPconvertstheseclaimstoequityattheirbookvalue.Thusconvertiblebondsnolossinrecognizedontheconversion.andpreferredstockOmittedborrowingAslossesarenotrecognizedonconversionofnon-equitycostsfinancinginstruments(likeconvertiblebonds)intoequity,borrowingcostsareunderstated.Omitted(off-balanceOutstandingobligationstoissuesharesatlessthanmarketpricesheet)liabilitiesarenotrecognizedonthebalancesheet.Theseincludetheoptionoverhangfromoutstandingstockoptions.9-29