Term
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Definition
Cash, Net receivables, Marketable Securities
÷
Current Liabilities
Mnemonic - Cathy nibbles mushrooms |
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Term
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Definition
Current assets
÷
Current Liabilities |
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Term
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Definition
Net credit sales
÷
Avg Net Receivables |
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Term
| Number of days' sales in avg. receivables |
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Definition
365
÷
Receivable Turnover (Net credit sales ÷ Avg Net Receivables) |
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Term
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Definition
Cost of Goods Sold
÷
Avg Inventory |
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Term
| Number of days' supply in avg inventory |
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Definition
365
÷
Inventory Turnover (Cost of Goods Sold ÷ Avg Inventory) |
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Term
| Length of Operating Cycle |
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Definition
Number of days' supply in avg inventory
÷
Number of days' sales in avg. receivables |
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Term
| ASC - Balance Sheet Classification of current assets and Liablities |
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Definition
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Term
| IFRS - CL & CA on balance sheet |
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Definition
| Either divide assets and liab into C/NC or by liquidity. |
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Term
| IFRS - Financial assets on BS |
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Definition
| Measured at amortized cost or fair value |
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Term
| IFRS - Refinancing of debt |
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Definition
US - allows short-term debt to be classed as NC if company intends to refinance.
IFRS - Only if a signed agreement to refinance exists at B/S date. |
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Term
| IFRS - Contingencies and Provisions |
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Definition
Contingencies - Not probable or measurable, only a disclosure is needed. If remote, no disclosure.
Provision - Probable and measurable. Probable = more than 50% likely. |
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