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Index Financial statements: balance sheet, 17 18 cash flow statement, 20 components of, 14 consolidated, see Consolidated financial statements elements of, 10 11 for first-time adoption of IFRS, 363 Framework for the Preparation and Presentation of Financial Statements, 8 11 general purpose, 13 for hyperinflationary economies, 211 212 IAS 1, Presentation of, 13 25 IAS 27, Consolidated and Separate Financial Statements, 193 199 identification of, 16 income statement, 18 19 of investor in a joint venture, 217 218 leases in, 119 123 notes to, 20 21 objective of, 8 of parent entities, 195 presentation currency for, 161 163 purpose of, 14 qualitative characteristics of, 9 10 for related-party transactions, 176 177 reporting period for, 16 restatement of, 211 213 statement of changes in equity, 19 underlying assumptions for, 8 9 Financing activities: on cash flow statement, 37 39 defined, 35 Finland, IFRS adoption by, 1 First IFRS financial statements, 363, 364 First-in, first out method, see FIFO (first-in, first-out) method First-time adopter (of IFRS), 364 First-time adopter rule, deemed exceptions to, 364 First-time Adoption of International Financial Reporting Standards (IFRS 1), 5, 362 380 accounting policies, 366 adjustments required in opening IFRS balance sheet, 365 366 assets and liabilities of subsidiaries, associates, and joint ventures, 369 business combinations, 368 compound financial instruments, 369 cumulative translation differences, 369 deemed exceptions to firsttime adopter rule, 364 definitions, 363 364 employee benefits, 369 exceptions to retrospective application of other IFRS, 369 370 extracts from published financial statements, 373 380 fair value or revaluation as deemed cost, 368 opening IFRS balance sheet, 364 365 presentation and disclosure, 370 373 proposed amendment to, 7 rationale behind current version of IFRS, 367 reporting period, 366 scope of standard, 363 targeted exemptions from other IFRS, 367 368 transitional provisions in other IFRS, 367 First-Time Application of IAS as the Primary Basis of Accounting (SIC 8), 363 Fixed cost contracts, 70 Fixed price contracts, 67 Foreign currency: cash flows with, 42 recording transactions using, 160 Foreign exchange rates, see The Effects of Changes in Foreign Exchange Rates (IAS 21) Foreign operations: defined, 159 disposal of, 164 hedge of a net investment in, 7, 277 translation of, 163 Forgivable loans, 151 Forward contracts, on cash flow statement, 42 Framework for the Preparation and Presentation of Financial Statements (IASB), 8 11 France, IFRS adoption by, 1 Full recognition approach (actuarial gains/losses), 144 Functional currency, 159 160 defined, 159.



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with below-average returns on capital, either. (Businesses like Just Broccoli are unlikely to earn a high return on capital for even one year!) So by eliminating companies that earn ordinary or poor returns on capital, the magic formula starts with a group of companies that have a high return on capital. Sure, some of the companies chosen by the magic formula won t be able to maintain their high return on capital. As we just learned, businesses with high returns on capital tend to attract competition. Also, even mediocre businesses can have a good year or two and temporarily achieve a high return on capital. But, on average, the high-return-on-capital companies chosen by the magic formula are more likely to have the opportunity to reinvest a portion of their profits at high rates of return. They are more likely to have the ability to achieve high rates of earnings growth. They are also more likely to have some special competitive advantage that will allow them to continue to earn an above-average return on capital. In other words, on average, the magic formula is finding us good companies! And what does the magic formula do with this group of good companies . . . It tries to buy them at bargain prices!





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1. 2. 3. 4. 5. 6.

1 Policymakers Should Distinguish Hype from Reality In light of the frenzy that nanotechnology has generated in the press and financial communities, it is difficult for policymakers to know what is actually taking place in the field Some reports claim that nanotechnology has already matured while other reports caution that it is decades away Of course, as discussed in s 1 and 2, the truth is somewhere in between it depends on how the term nanotechnology is defined We divide nanotechnology applications into three categories: simple nanotechnology, building small nanotechnology, and building large nanotechnology Simple nanotechnology, which primarily describes the use of nanoparticles in different materials, is already making a market impact For example, stain-resistant jeans and transparent suntan lotion incorporate nanoparticles.

Your list may not be complete, or even right, but it s a start. Now compile questions for each area on your list to evaluate your preliminary assessment. You might ask questions like these:

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Caution The warnings on the sample DVD Region tab in Figure 53-4 apply to many DVD drives. Never change the DVD Region unless absolutely necessary. You don t want to use up your four (or whatever) changes, and be stuck with a drive that won t play DVDs from your own geographic region!

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