Chapter 7: Long-Term Liabilities and Equity

In this section

• Lease Accounting (Lessee vs. Lessor)
  Explore the intricacies of lease accounting for both lessees and lessors under IFRS and US GAAP, including classification, financial statement impact, and analytical considerations.
• Pension and Other Post-Employment Benefits
  Explore the fundamentals of pensions and post-retirement healthcare benefits, including defined benefit and defined contribution plans, under IFRS and US GAAP with real-world examples and best practices for analysis.
• Stock-Based Compensation
  Explore how stock-based compensation is accounted for under IFRS 2 and ASC 718, including fair value measurement, expense recognition, common pitfalls, best practices, and real-world examples.
• Equity Transactions and Disclosures
  Explore the intricacies of equity accounting, including share issuances, repurchases, dividends, and the disclosures vital for capital structure analysis.
• Hybrid Instruments and Presentation
  Discover how hybrid instruments combine both debt and equity characteristics. Learn about bifurcation requirements, embedded derivatives, beneficial conversion features, and how IFRS 9 and ASC 815 guide classification and measurement.
• Convertible Debt and Detachable Warrants
  Explore the accounting and financial analysis implications of convertible debt and detachable warrants, including allocation of proceeds, interest expense, dilution effects, and key IFRS/US GAAP guidance.
• Recording and Analyzing Treasury Stock Transactions
  Learn the comprehensive methods for recording treasury stock, analyzing its impact on equity, earnings, and financial ratios, and exploring repurchase motivations under IFRS and US GAAP frameworks.
• Economic Value Added (EVA) Considerations for Equity
  Discover how EVA helps measure true residual return for shareholders, including key calculations, adjustments, and real-world insights for maximizing equity value.
• IFRS vs. US GAAP Pension Accounting Differences
  A comprehensive comparison of IFRS and US GAAP pension accounting, focusing on net pension liabilities, periodic cost recognition, corridor method, and remeasurement adjustments—key for CFA® 2025 Level 1 exam preparation.
• IFRS 16 vs. ASC 842 Lease Approaches
  Explore key differences and similarities between IFRS 16 and ASC 842 lease accounting standards, focusing on their impact on lessees' financial statements and investors’ ratio analysis.