CFO Fundamentals -- Contents -- What This Book Will Do for You -- PART ONE: REPORTS AND FILINGS -- 1: Chief Financial Offi cer's Role and Reports -- Role of the Chief Financial Officer -- Governmental Reporting -- Reporting under the Sarbanes-Oxley Act -- XBRL Reporting -- Other Reporting -- 2: Securities and Exchange Commission Filings -- SEC Rules -- S Forms -- SEC Regulations -- SOX Reporting Requirements -- PART TWO: FINANCIAL REPORTING -- 3: Financial Statement Reporting: The Income Statement -- How Is the Income Statement Presented? -- Revenue Recognition -- Construction Contracts -- Expense Recognition -- 4: Financial Statement Reporting: The Balance Sheet -- Assets -- Accounts Receivable -- Inventory -- Fixed Assets -- Disclosure -- Liabilities -- Accounting for Compensated Absences -- Environmental Obligations -- Exit or Disposal Activities -- Fair Value Measurements -- Fair Value Option for Financial Assets and Financial Liabilities -- Statement of Cash Flows -- Available-for-Sale and Held-to-Maturity Securities -- 5: Statement of Cash Flows -- Classifications of Cash Flow -- Analysis of the Statement of Cash Flows -- 6: Accounting and Disclosures -- Accounting Changes -- Futures Contracts -- Various Disclosures -- 7: Key Financial Accounting Areas -- Consolidation -- Investments in Stocks and Bonds -- Leases -- Pension Plans -- Postretirement Benefits Excluding Pensions -- Income Tax Allocation -- Deferred Tax Liability versus Deferred Tax Asset -- Tax Rates -- Foreign Currency Accounting -- Translation of Foreign Currency Statements When the Foreign Currency Is the Functional Currency -- International Financial Reporting Standards -- 8: Interim and Segmental Reporting -- Interim Reporting -- Segmental Reporting -- PART THREE: COST MANAGEMENT AND IT SYSTEMS -- 9: Cost Management and Analysis -- What Is Cost Management and Analysis?.

Strategic Cost Management -- Overhead Costing -- Activity-Based Costing -- Activity-Based Management -- Target Costing and Pricing -- 10: Cost-Volume-Profit Analysis and Leverage -- Cost-Volume-Profit Analysis -- What-If Analysis -- Sales-Mix Analysis -- CVP Analysis for Nonprofit Organizations -- Leverage -- 11: Short-Term Decisions -- Relevant Costs -- Best Use of Scarce Resources -- Theory of Constraints -- 12: Financial Forecasting, Planning, and Budgeting -- Financial Forecasting: The Percent-of-Sales Method -- Budgeting -- Some Financial Calculations -- Budgeting Software -- Using an Electronic Spreadsheet to Develop a Budget Plan -- Latest Generation of Budgeting and Planning Software and E-Budgeting -- 13: Risk Management -- Enterprise Risk Management -- An Approach to Risk Management -- A Close Look at Risk Management -- How to Reduce Investment Risk: Diversify -- Beta-The Capital Asset Pricing Model -- Arbitrage Pricing Model -- 14: Capital Budgeting and Real Options -- Time Value Fundamentals -- Popular Evaluation Techniques -- Limited Funds for Capital Spending -- Real Options -- Discovery-Driven Planning -- Effect of Income Taxes on Capital Budgeting Decisions -- 15: The What and Why of Responsibility Accounting -- Responsibility Accounting Basics -- Cost Center Performance and Standard Costs -- Flexible Budgets and Performance Reports -- Production Mix and Yield Variances -- 16: Control of Profit Centers -- How Do You Evaluate Profit Centers? -- Profit Variance Analysis -- 17: Performance of Investment Centers and Transfer Pricing -- Rate of Return on Investment -- Residual Income -- Investment Decisions under ROI and RI -- Transfer Pricing -- 18: How to Analyze and Improve Corporate Profi tability and Shareholder Value -- Measures of Managerial Performance and Shareholder Return -- Sustainable Rate of Growth -- Economic Value Added.

Balanced Scorecard -- 19: Information Technology and IT Systems -- Computer Technologies Available for Business -- Role of Information Systems in the Strategic Plan -- Management Information Systems -- Who Uses Executive Information Systems? -- Value Chain Management Software -- Extensible Business Reporting Language -- Web 2.0 -- Cloud Computing and Competitive Advantage -- Mobile Computing (Wireless Technology) -- Handheld Device Security and Contingency Planning -- Disaster Recovery and Business Continuity Planning -- CFO's View of Information Technology: A Current Survey -- PART FOUR: MANAGEMENT OF ASSETS AND LIABILITIES -- 20: Working Capital and Cash Management -- Evaluating Working Capital -- Cash Management -- Cash Management Models -- Banking Relationships -- International Cash Management -- 21: Management of Accounts Receivable -- Managing Receivables -- Investment in Accounts Receivable -- 22: Inventory Management -- Inventory Recording and Control -- Inventory Costs -- Economic Order Quantity -- Reorder Point -- How to Find the Optimal Safety Stock Size -- ABC Inventory Control -- Service Business -- 23: Management of Payables -- Accounts Payable System -- Managing Payables -- PART FIVE: FINANCING THE BUSINESS -- 24: Short-Term and Intermediate-Term Financing -- Short-Term Financing -- Intermediate-Term Financing -- 25: Long-Term Financing -- Types of Long-Term Debt and When Each Should Be Used -- Issuance of Equity Securities -- Financing Strategy -- 26: Warrants and Convertibles -- Warrants -- Convertible Securities -- 27: Cost of Capital and Capital Structure Decisions -- Individual Costs of Capital -- Weights -- EBIT-EPS Approach to Capital Structure Decisions -- Analysis of Corporate Cash Flows -- Coverage Ratios -- Capital Structure Decisions -- 28: Dividend Policy -- Types of Dividend Policies -- Variables to Be Considered.

29: Financial Management of Multinational Corporations -- Financial Management Essentials for MNCs -- Foreign Exchange Market -- Financial Strategies -- Types of Foreign Exchange Exposure -- Interest Rate Parity -- Purchasing Power Parity -- Appraising Foreign Investments -- Financing -- Analysis of Foreign Investments -- PART SIX: FINANCIAL ANALYSIS, INSURANCE AND LEGAL CONSIDERATIONS, AND ECONOMICS -- 30: Financial Statement Analysis -- Financial Analysis Essentials -- Balance Sheet Analysis -- Potential for Business Failure -- Income Statement Analysis -- Market Value Ratios -- Analyzing the Financial Structure of the Firm -- Product Line Measures -- Industry Characteristics Indicative of Greater Risk -- Considerations in Foreign Operations -- 31: Analysis, Evaluation, and Control of Revenue and Costs -- Control Reports -- Control of Costs -- Performance Measures -- Business Processes -- 32: Insurance and Legal Considerations -- Insurance Protection -- Types of Insurance -- Medical and Catastrophe Coverage -- Liability Insurance Coverage for CFOs -- Business Law -- 33: Reading Economic Indicators -- How Can You Keep Track of the Economy with Economic and Monetary Indicators? -- Housing-Related Measures -- Indices of Leading, Coincident, and Lagging Economic Indicators -- Other Important Economic Indices -- Monetary Indicators and How They Impact the Economy -- Understanding Economic Data and Indicators -- Economic Indicators and Stocks and Businesses -- Economic Indicators and Bond Yields -- PART SEVEN: LIQUIDITY AND TREASURY -- 34: Corporate Investments in Securities -- Cash and Liquidity Management -- Terms and Features of Bonds -- Other Fixed Income Investments -- Money Market Preferred Stock -- Private Equity -- Current Trends in Liquidity Management Strategy -- PART EIGHT: TAXATION -- 35: Tax Factors in Financial Decision Making.

What Should You Know about Taxes? -- Gross Income -- Depreciation -- Amortization -- Tax Planning -- PART NINE: MERGERS AND ACQUISITIONS, DIVESTITURES, FAILURE, AND REORGANIZATION -- 36: Mergers and Acquisitions -- Valuation -- Fair Market Value of Net Assets -- Capitalization of Revenue -- Price/Earnings Ratio -- Similar Businesses -- Sales of Stock -- Combination of Methods -- Successful Strategy for Mergers and Acquisitions -- 37: Divestiture -- Why Divest? -- Asset Valuation Methods -- Profitability Methods -- Market-Based Comparisons -- Discounted Cash Flow Analysis -- Divestiture with Uncertainty -- 38: Forecasting Corporate Financial Distress -- Prediction Models -- Z-Score Model -- Applications -- 39: Failure and Reorganization -- Business Failure -- Reorganization -- 40: Valuation of Bonds and Stocks -- How to Value a Security -- How to Value Bonds -- How to Value Preferred Stock -- How to Value Common Stock -- Price/Earnings Ratio Approaches -- Other Pragmatic Approaches -- The Bottom Line -- 41: Financial Statement Analysis: Key Financial Ratios and Metrics for Nonprofits -- Trend Analysis -- Analysis of the Balance Sheet -- Liquidity Analysis -- Appraisal of Solvency, Capital Structure, and Net Assets (Fund Balance) -- Evaluation of the Statement of Activities -- Performance Metrics -- Spotting Potential Bankruptcy and Avoiding Financial Problems -- Case Study in Financial Statement Analysis -- Appendix -- About the Authors -- Index.