• 043 04/08/2016 FASB Announces Accounting Standards Update
    Per the image above, while it may not be the most exciting news, it's information you need to know: The Financial Accounting Standards Board (“FASB”) has issued a final standard to simplify the presentation of debt issuance costs. Most concisely, this new standard requires that the costs associated with debt issuance be presented as a direct deduction from the associated debt liability. This is in contrast to the previous approach, which called for capitalizing this expense and amortizing it over the life of the loan. This update became effective for financial statements for fiscal years after December 15, 2015, and interim periods within fiscal years by December 15, 2016. 

    I was made aware of this update on account of an acquisition we made in April of 2015, coincidentally around the same time that the FASB made this announcement initially. The opening balance sheet audit (the balance sheet presented post transaction), detailed this change in the notes that followed the financial statement. 

    As it pertains to this website, this information is most relevant to the Leveraged Buyout Model video series. It impacts the balance sheet adjustments made to record a transaction in the video titled Simple LBO. I will follow up with detailed instruction. 

    The best summary I found was from PWC (not unusual, they are a publishing powerhouse). Please see LINK.
 



  • 042 03/15/2016 Multi Location Model (Franchise Model)

    To make room for a new series of videos, I am moving the "Multi Location Model" to the Reference page per this post. The series titled Business Development will instead focus on the financial model behind this website. 

    The original video for the Multi Location model and the associated Excel workbook are both available below.

    Video Description: This video walks through a model that assumes you operate a single-location business, and that you are contemplating opening new locations. The Excel template permits adding new locations and outputs the financial performance of the combined entity. In this installment the model will be introduced, and the process of inputting different assumptions will be explained.


     


 



Test Your Financial Modeling Knowledge 041 03/09/2016 Test Your Financial Modeling Knowledge

Friends of ASM – I am stoked to announce that we are incorporating a new quizzing platform. At ASimpleModel.com, we believe testing makes you smarter faster, and that retrieving knowledge from memory is essential to successful learning. We are also working to keep as much content available for free as we possibly can. In that effort, our goal is to charge primarily for testing. 

The images to the right display screen captures of the new dashboard available to subscribers. Each quiz permits unlimited attempts, and once you are content with your score you can use the Facebook share button to share your results. Each share button is specific to the category, so you do not have to worry about completing all sections before using this feature. 

If this is a concept you believe in please sign up. More subscribers will permit the development of new material and greater technology.

Please click here to subscribe.

IMPORTANT: The Safari browser can cause technical difficulty. If Safari is your browser of choice please refer to page one of the ASM Manual to ensure compatibility.

 




 



Models are:
 
A) really boring
B) pretty sweet
C) super important
D) somewhat easy
E) kind of hard
F) fun
G) all of the above

 

 


*Answers a, b, c, d, e, f and g are all correct.