国外某公司财务分析手册(全英文版图文并茂).docx

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1、Transparent Financial Reporting Analysis Manual A.doc,9/8/2006,11:23 AMKater Inc.Transparent Financial Reporting Analysis ManualSEC/Legal EntitySEC/LegalEntity/GAAPBusinessUnitsAccountableEnterpriseProductProfitabilityFocus1Transparent Financial Reporting Analysis Manual A.doc,9/8/2006,11:23 AMConte

2、ntsChapter 1Introduction.1.Kater Methodologies.2.Aggregation Methodologies.3.Rate/Volume Concept.4.Commentary.5.Roles&Responsibilities.Chapter 2Form M Summary.Chapter3ForeignCurrencyReconciliation.Chapter 4Sales Reconciliation.1.Overview2.Price Realization.a.Foreign Currencyb.Published Price.c.Sales

3、 Discount.d.Warrantye.Transfer Yield.f.Physical Sales Volume.3.Base Period Variable Margin Percentage.4.Volume Impact on Margin.Chapter 5Mix.1.Overview2.Geographic Mix.3.Country/RegionMix.4.Geographic Mix on Transfers.5.Product Mix Impact on Sales6.Product Mix between Product Lines.7.Product Mix wit

4、hin Product Lines.a.Revenue Salesb.Non-revenueSalesandTransfersChapter 6Variable Cost.1.Overview.2.Cost of Sales.3.Transfer In/Inter-company Purchases.4.Inventory Adjustments/RSSMs.5.Other Variable Cost.Chapter 7Period Cost of Sales.1.Overview.2.Period Costs Incurred.1Transparent Financial Reporting

5、 Analysis Manual A.doc,9/8/2006,11:23 AM3.Period Costs Inventory Effect.4.Variable Margin Percentage.Chapter 8Parts.Chapter 9Period SG&A/R&D.Chapter 10Other Income and Expense.Chapter 11The Chunk Chart.Chapter 12Contact Details.Chapter 13Glossary(Analysis).Chapter 14Glossary(TFR).2Transparent Financ

6、ial Reporting Analysis ManualIntroduction:Kater MethodologiesIn order to fully leverage the benefits of Transparent Financial Reporting,a comprehensiveprocess for financial analysis was developed.The principles of this new process are:One tool for all analysis needsAll business unit,product line and

7、 consolidatedanalysis will be performed using this processHighly mechanicalUtilizing pre-populated templates and pre-defined calculations,manual input into the model has been minimizedMandatoryandconsistentmethodologiesTheprescribedmethodologiesfor calculations and aggregation must be followed or th

8、e mechanicalprocess will not provide accurate and consistent financial analysisKater utilizes the Form M as the model to explain changes in results between comparisonperiods.The Form M explains changes in sales and changes in profit.Major drivers ofboth of these changes are illustrated in the overal

9、l structure of the Form M depicted below.Form M StructureChange in CorporateProfitSales changesCost changesDuetoCurrency impactsPrice realization:1)Published price2)Sales discount3)Warranty4)Transfer yieldPhysical sales volumeDuetoCurrency impactsVariable costsMixPhysical sales volumePeriod costsOth

10、er income/expenseThe primary focus of financial analysis at Kater is to explain actual results both year over yearand vs.plan,as well as RBM(Rolling Business Management)forecasts.Below is a summary ofrelevant comparison periods.YTD vs.YTDYTD vs.PlanMonth vs.PlanQtr vs.QtrRBM Analysis(current vs.prio

11、r year,current vs.future year,current vs.plan)This is not an all-inclusive list of analysis requirements.For instance to prove that currentmonth results do not contain significant errors it is necessary to compare current month toprevious month actual results.Transparent Financial Reporting Analysis

12、 Manual A.doc,9/8/2006,11:23 AM3Transparent Financial Reporting Analysis ManualIntroduction:Kater Methodologies4The final output of the Form M is a graphical depiction of changes in results for both sales andcorporate profit.These charts,commonlyreferred to as chunk charts,are automaticallycreated a

13、nd are graphical models inherent in the Form M.Sales&RevenuesOperatingProfitAccountableProfitCorporateProfitCurrent Period1,130,675198,714196,017169,842Base Period1,006,675174,962172,512146,337Change124,00023,75223,50523,50530025086.60.1(4.3)3.0(11.3)(49.9)200150146.318.7(5.0)(12.4)(3.8)2.0(0.0)(0.2

14、)169.8-10050-BasePeriodVol/MixPrice RealTrans YldWarrCCYMatlCostVarCostPCOSSG&AR&DParts(McFee)Other OperAllOtherCorp BurdenCurrentPeriodProfit ChunkSales&RevenuesOperatingProfitA ccountableProfitCorporateProfitCurrentPeriod1,130,675198,714196,017169,842BasePeriod1,006,675174,962172,512146,337Change1

15、24,00023,75223,50523,5051,2001,0001,0073287(4)50-51,131800600400200-Base P eriodNS&TV olumePriceRealizationWarrantyCurrencyTransferYieldG eographicMix-TransfersP arts(McFee Related)CurrentPeriodNS&TSales ChunkTransparent Financial Reporting Analysis ManualIntroduction:Kater Methodologies5The Kater f

16、inancial analysis process flow is summarized in the following paragraphs and theattached flowchart.Essbase:The backbone of the analysis tool is Essbase.Essbase is a series of data cubesthat allow for manipulation of significant amounts of data.Essbase collects data from multiplesources and pre-popul

17、ates the analysis templates with data necessary to complete the Form M.After the monthly closing process is complete,actual data is loaded from the Accountable DataCubes within the General Ledger System(GLS).Prior year actual data,business plan andRBM forecast data are loaded via RBM templates.The f

18、ront end user-interface toEssbase is referred to as“Catalyst”.Catalyst is an Excel add-in that allows users to send andretrieve data to the Essbase data cubes.Business Unit Analysis:This analysis is completed by the relevant Business Manager,utilizing the pre-populated templates and supplemental cal

19、culations as required.BusinessUnit Form Ms are always subdivided by Product Line(effectively all Business Units will have aForm M for each Product Line they support as well as a Consolidated Business Unit Form M).Commentary to support the Business Unit analysis is required as well.Once completedBusi

20、ness Unit analysis is submitted into Essbase to facilitate the creation of Product LineForm Ms.Product Line Analysis:After all Business Unit(as well as by Product Line within BusinessUnit)analysis is complete,Essbase creates the Product Line Form Ms.The Business Unitthat houses the Global Product Ma

21、nager will provide commentary to support the Product Lineanalysis.Once completed this analysis is submitted into Essbase to facilitate the creation ofthe remaining steps of the Product Line Cascade.Product Category and Sub-Line of Business Analysis:After the Product Line analysis isfinalized the Pro

22、duct Category and Sub-Line of Business analysis will be mechanicallygenerated.Principal LineofBusiness:At the Principal Line of Business level several Corporatevariances that are not assigned at a lower level are added to the analysis;actual foreignexchange gains/losses,actuarial gains/losses on pen

23、sion assets and LIFO variances,etc.These variances flow through to Consolidated analysis as well.On a forecast basis theseitems will be assigned by CAS.Transparent Financial Reporting Analysis ManualIntroduction:Kater Methodologies6Overview of the Transparent Financial Reporting Analysis processAcco

24、untableGLS Data CubesBusiness UnitComparisonPeriod DataActual DataReplicated toEssbaseEssbase DataCubeComparison perioddata pre-populated(ABP,Prior year actualor RBM)Loaded via RBMtemplateBusiness Unit(By ProductLine)Form MswithCommentaryEssbase DataCubeProduct LineForm MswithCommentaryProductCatego

25、ryForm MsSub-Line ofBusinessForm MsPrincipal Line ofBusinessForm MsConsolidatedForm M7Transparent Financial Reporting Analysis ManualIntroduction:Rate/Volume ConceptBusiness Unit Form M(e.g.TTT)Product Line Form M w/in Business Unit(e.g.Pipelayer w/in TTT)Product Line Form M w/in Business Unit(e.g.M

26、TT w/in TTT)Product Line Form M w/in Business Unit(e.g.LTT w/in TTT)RecalculationBusiness Unit Form M(e.g.TTT)Product Line Form M w/in Business Unit(e.g.Pipelayer w/in TTT)Product Line Form M w/in Business Unit(e.g.MTT w/in TTT)Product Line Form M w/in Business Unit(e.g.MTT w/in TTT)Product Line For

27、m M w/in Business Unit(e.g.LTT w/in TTT)Product Line Form M w/in Business Unit(e.g.LTT w/in TTT)RecalculationAGGREGATIONBusiness Unit FormMThe calculations for the Business Unit Form M can be divided into three categories:1.Additive Items;2.Business Unit Calculations;and3.Recalculated Items.Grouping

28、 calculations into these three categories facilitates achieving transparency betweenBusiness Unit analysis and Product Line analysis.These aggregation methodologies arepredefined and cannot be deviated from.Additive Items:These items(see figure below)for the Business Unit Form M are add-ups ofProduc

29、t Line calculations.Calculations will be completed at the Product Line within BusinessUnit level and added together to arrive at the Business Unit total.Business Unit Calculations:These items(see figure below)for the Business Unit Form Mare to be calculated at an overall Business Unit Level.The tota

30、l Business Unit Form Mvariance will then be split by the Business Unit between the Product Lines within the BusinessUnit.Recalculated Items:The sum of total margin impact of physical sales volume and mix fortotal Business Unit and total Product Lines within a Business Unit are equal.However,as youag

31、gregate from Product Lines within a Business Unit to total Business Unit,volume and mixmustberecalculated.TheformMcalculatesvolumeandmixbyProductLinewithin Business Unit.It then recalculates volume at a Business Unit level.Thedifference between the additive volumes of the Product Line calculations a

32、nd the Business Unitcalculation is defined as mix between Product LinesBusiness Unit Form M(e.g.TTT)Price RealizationPublishedPriceChangeSales VarianceRat e ChangeProductMix ImpactonSalesMix by Model WarrantyInvento ry Adjustments/RSSMsPeriod CostsParts Profit(McFee)OtherOperatingInc/Exp Other Incom

33、e&ExpenseCorporateBurdenItemsTransfer YieldCurrencyMaterialTransfers InVariableLabor/BurdenOthe r VariableCostsVolumeMix betweenProductLinesAdditiveItemsBUCalcs.RecalculationProduct Line Form M w/in Business Unit(e.g.Pipelayer w/in TTT)Product Line Form M w/in Business Unit(e.g.MTT w/in TTT)Product

34、Line Form M w/in Business Unit(e.g.LTT w/in TTT)PriceRealizationPublishedPriceChange SalesVarianceRateChange Product Mix Impact onSalesGeographicMixCountry/Region MixOth er SalesVar.Rate ChangeMix by ModelWarrantyInventory Adjustments/RSSMsPeriod CostsParts Profit(McFee)OtherOperatingInc/ExpOther In

35、come&ExpenseCorporateBurden ItemsTransfer YieldCurrency MaterialTransfers InVariableLabor/Bu rdenOther VariableCostsVolume8Transparent Financial Reporting Analysis ManualIntroduction:Rate/Volume ConceptVolumeMixGeographic MixPrice RealizationPublishedPrice ChangeTransfer YieldProdCuurcretncLyine For

36、m M w/in Business Unit(e.g.LTT w/in TTT)Product Line Form M(e.g.LTT)Product Line Form M(e.g.LTT)Product Line Form M w/in Business Unit(e.g.LTT w/in LACD)Product Line Form M w/in Business Unit(e.g.LTT w/in LACD)Mixeographic MixVolumeMixGeographic MixP Pr ri ic ce e R Re ea al li iz za at ti io on nPP

37、 Pru uob bdl li is suh he ecd dtP PLr ri ic cie enC Ceh ha aFn ng goe erm M w/in Business Unit(e.g.LTT w/in NACD)T Tr ra an ns sf fe er r Y Yi ie el ld dPPrrooddC Cuuu ucr rcr re ettn nLc cLy yiinneeFFoorrmmMMww/iinnBBuussiinneessssUUnniitt(ee.gg.LLTTTTww/iinnTTTTTT)Product Line Form M(e.g.LTT)Produ

38、ct Line Form M w/in Business Unit(e.g.LTT w/in LACD)Mixeographic MixVolumeMixGeographic MixPrice RealizationPPruobdlisuhecdtPLricienCehaFngoerm M w/in Business Unit(e.g.LTT w/in NACD)Transfer YieldPPrrooddCuuucrcrettnLcLyiinneeFFoorrmmMMww/iinnBBuussiinneessssUUnniitt(ee.gg.LLTTTTww/iinnTTTTTT)Produ

39、ct Line Form M(e.g.LTT)Product Line Form M(e.g.LTT)Product Line Form M w/in Business Unit(e.g.LTT w/in LACD)Product Line Form M w/in Business Unit(e.g.LTT w/in LACD)Mixeographic MixVolumeMixGeographic MixP Pr ri ic ce e R Re ea al li iz za at ti io on nPP Pru uob bdl li is suh he ecd dtP PLr ri ic c

40、ie enC Ceh ha aFn ng goe erm M w/in Business Unit(e.g.LTT w/in NACD)T Tr ra an ns sf fe er r Y Yi ie el ld dPPrrooddC Cuuu ucr rcr re ettn nLc cLy yiinneeFFoorrmmMMww/iinnBBuussiinneessssUUnniitt(ee.gg.LLTTTTww/iinnTTTTTT)ProTransfer Yieldct on SalesAGGREGATIONProduct Line FormMThe calculations for

41、the Product Line Form M are fully mechanical,based on Business Unitinputs,and they can be divided into two categories:Additive Items and Product LineCalculations.Groupingcalculationsintothesetwocategoriesfacilitatesachieving transparency between Business Unit analysis and Product Line analysis.Addit

42、ive Items:These items(see Figure below)for the Product Line Form M are consideredto be add-ups of the Product Line pieces calculated in the Business Unit Form M process.Each Product Line is fed Form M data via Essbase from one or more Business Units.Thevariances in the list below for the Product Lin

43、e Form M are a summation of the variances fedfrom the Business Unit Form Ms.Product Line Calculations:Volume,Geographic Mix,and Mix will be completed at anoverall Product Line level.All Product Line calculations are performed mechanically withinthe Form M.Product Line Form M(e.g.LTT)PriceRealization

44、PublishedPriceChange Sales VarianceRate ChangeProduct MixImpactonSalesGeographicMixCountry/RegionMixOther SalesVar.RateChangeTransfer YieldCurrencyMixby ModelWarrantyPeriodCostsMaterialTransfersInVariable Labor/BurdenOther VariableCostsInventoryAdjustments/RSSMsPartsProfit(McFee)OtherOperating Inc/E

45、xpOther Income&ExpenseCorporateBurdenItemsVolumeMixGeographic MixAdditiveItemsProduct Line Form M w/in Business Unit(e.g.LTT w/in LACD)Product Line Form M w/in Business Unit(e.g.LTT w/in NACD)Sales Variance Rate ChangeProduct Line Form M w/in Business Unit(e.g.LTT w/in TTT)Geographic Mix on Transfer

46、sProductMPirxicIemRpaecatliozantiSoanlesPuMbliixshbPeydrMicPeordiRceeelaClihzantigoneSalesPVWuabrailarisrnahcneetdyRParticeeCChhaannggeeSPaelersioVdaCrioasntcse Rate ChangeMduaCctetuMrriraiexlnIcmypaGeogTraraphnisGcfeMrosixgIrnoanphTicraMnsixfersPV VPVPVaroridaubcletCMLoaixubInomtrr/ypB/auRcredtgeoi

47、nonSMaleixsOtOhtehreVrMaSirxaialbebysleMVCaoord.seRtlsate ChangeInventoryAdjuWsTtmararernansntfstey/rRYSiSelMdsParts PPreorfiot(dCMCucroFresetnesc)yOtherOperaMMtianitxgebrIinayclM/EoxdpelOtherIncoTmraen&sWfeEarrxsrpaIennntyseCorpVoarraitaebBleuPLrdearebionodrI/tBCeumorssdtesnOther VariMabalteerCiaol

48、stsInventory AdjTusratmnsefnetrss/RInSSMsPaVrtasriParbolefitL(MabcoFre/Beu)rdenOtherOOthpeerraVtainrgiaIbnlec/CExopstsOInthverntInocryomAdeju&stEmxepnetnss/ReSSMsCorpoPratretsBPurrodfeitn(MItecFmese)OtherOperating Inc/ExpOther Income&ExpenseCorporateBurdenItemsVolumeMixGeographic MixVolumeMixGeograp

49、hic Mix9Transparent Financial Reporting Analysis ManualIntroduction:Rate/Volume ConceptFor purposes of variable margin analysis the Form M separates total sales and marginbetween rate and physical sales volume.The illustration below using sample data highlights the rate/volume concept.Illustration:R

50、ate/Volume ConceptNet sales&transfers-base1,000Net sales&transfers-current1,200Total netsales&transfers change200less:Currencymovements(20)Published pricechanges50Sales discount changes10Price RealizationW arranty30Physical sales volume change130Rate of growth of physical sales volume13%?(Physical s