1. Basics of financial management Chapter 16

2. Balance sheet model Non-current assets Current assets Equity
Intangible assets
Property, plant and equipment
Financial assets
Current assets
Inventories
Trade receivables
Cash and cash equivalents
Equity
Non-current liabilities
Long-term borrowings
Long term provisions
Current liabilities
Short-term borrowings
Trade payables
Short-term provisions

3. Fixed assets Research and development
Purchased concessions, patents and trademarks
Purchased goodwill
Intangible non-current assets
Ownership
Financial lease
Tangible fixed assets
Financial fixed assets

4. Lease in the financial statements
Purchase
Lease
Rent
Financial
Operational
On balance
Off balance

5. Long-term projects Profit is taken when the work has been completed
Balance sheet valuation at costs
Completed-contract method
Profit is taken gradually as work progresses
Balance sheet valuation at costs plus allocated profit
Percentage-of-completion method

6. Profit and loss account
Nature-of-expense model
Function-of-expense model
On the basis of cost type (category):
Raw material
Labour
Fixed assets
Services of third parties
On the basis of business functions:
Purchasing
Manufacturing
Sales

7. Profit vs. value added Net value added Net profit
Profit appropriation
Profit distribution
Sales revenue
Raw material
Outsourcing costs
Depreciation
Other operating costs
Wages and salaries
Interest
Tax
Dividend
Retained earnings
Value added appropriation
Value added distribution

8. Inventory valuation FIFO LIFO WAC Supplier Consumer Supplier Consumer

9. Impairment test Book value > net realizable value Valuation

10. Historical cost vs. Replacement value
Profit determination on the basis of paid purchase price
Maintaining capital
Profit = increase of capital
Replacement value
Profit determination on the basis of purchase price at sale
Maintaining purchasing power of capital
Profit = increase of purchasing power of capital