Comparison between IFRS 17 and US GAAP
Fair Value Option A fair value option is an option to recognize an equity method investment at fair value at the time of initial recognition. Under IFRS, the fair value option is only available to venture capitalists and unit trusts….
Projections Beyond the Short-term Forecast Horizon
Effects of Technological Developments on Demand, Selling Prices, Costs, and Margins
Forecasting Industry and Company Sales and Costs When Subject to Inflation or Deflation
The Impact of Competitive Position on Prices and Costs
The Impact of Competitive Position on Prices and Costs
Forecasting Costs
Modeling Non-operating Costs and Other Items
Financing Expenses Financing costs comprise interest expense and interest income, which are typically netted. Interest income is less significant to non-financial companies but a key revenue component for financial institutions such as banks and insurance companies. Interest income depends on…
Behavioral Finance and Analyst Forecasts
Financial statement models are not immune to behavioral biases. Analysts must be aware of the impact of behavioral biases and solutions to improve investment decisions and forecasts. The five key behavioral biases are overconfidence, conservatism, confirmation bias, the illusion of…
