Time Value of Money and Its Applications ON DEMAND

Overview

CPAs must have a working knowledge of future value and present value concepts because of their application to numerous types of business events and transactions that require proper valuation and presentation. Time value of money is also a critical consideration in financial and investment decisions. For example, compound interest calculations are needed to determine future sums of money resulting from an investment. Discounting is used to evaluate the future cash flow associated with capital budgeting projects. This course aims at presenting the time value tools and techniques that are necessary for fair value measurements and for various financial decisions.

Highlights

Accounting Applications. Fair Value Measurements. Financial Applications. Time Value Fundamentals. Time Value Tables. Calculating Future Values How Money Grows. Intra Year Compounding. The Power of Compounding. Future Value of an Annuity. What Is Present Value How Much Money Is Worth Now? Present Value of Mixed Streams of Cash Flows. Present Value of an Annuity. Perpetuities. Deferred Annuities. The Applications of Future Values and Present Values. Amounts of Periodic Withdrawals. Determining the Number of Periods Required. Determining the Number of Periods Required. Amortized Loans. Lease Payments. How to Develop a Loan Amortization Schedule. Annual Percentage Rate (APR). Rates of Growth. Bond Valuation. Stock Valuation. Discounted Cash Flow (DCF) Techniques. Lease versus Purchase Decision. Expected Cash Flow Model. Choosing an Appropriate Discount Rate. How to Compute the Cost of Capital.

Prerequisites

None.

Designed For

CPAs, CFOs, controllers, financial professionals, and auditors.

Objectives

Define the concept of time value of money. Calculate the present value of an amount of money. Calculate amounts deposited and received in the future based on a set of information. Identify the concept behind bond yield. Identify which FASB model uses a range of cash flows and probabilities.