Value-Based Pricing: A Shift in Finance and Accounting

##Insightfinance Must Know these Short form If you are related to Account and Finance 🫴📈📉📊💼 Finance and accounting cheat sheet that summarizes common terms, ratios, and metrics 📊 Core Financial Statements P&L – Profit and Loss Statement B/S – Balance Sheet CFS – Cash Flow Statement F/S – Financial Statements OCI – Other Comprehensive Income --- 🔑 Key Concepts COGS – Cost of Goods Sold OPEX – Operating Expenses AR – Accounts Receivable AP – Accounts Payable RE – Retained Earnings PP&E – Property, Plant, and Equipment NI – Net Income --- 📏 Standards and Compliance IFRS – International Financial Reporting Standards GAAP – Generally Accepted Accounting Principles SOX – Sarbanes-Oxley Act --- 📝 Miscellaneous Accounting Terms G&A – General and Administrative Expenses R&D – Research and Development EIN – Employer Identification Number VAT – Value Added Tax --- 📈 Performance Metrics EBITDA – Earnings Before Interest, Taxes, Depreciation, and Amortization EBIT – Earnings Before Interest and Taxes ROA – Return on Assets ROE – Return on Equity EPS – Earnings Per Share TTM – Trailing Twelve Months T&E – Travel and Entertainment Expenses --- 💹 Valuation Metrics P/E – Price-to-Earnings Ratio D/E – Debt-to-Equity Ratio WACC – Weighted Average Cost of Capital EV – Enterprise Value FV – Future Value PV – Present Value --- 💵 Investment Analysis DCF – Discounted Cash Flow NPV – Net Present Value IRR – Internal Rate of Return CAPM – Capital Asset Pricing Model NAV – Net Asset Value ROI – Return on Investment TV – Terminal Value ##Insightfinance #Accounting #AccountingTips #Financeterms #Growth #shortform #Accountfinance

📘 Advanced Financial Accounting: Key Concepts Simplified 📘 Financial accounting at an advanced level isn’t just about recording — it’s about judgment, measurement, and comparison. Here are some of the most critical concepts every professional should master: 🔹 Valuation: Fair value vs. historical cost, mark-to-market vs. mark-to-model. 🔹 Consolidation: Parent + subsidiaries, equity method, eliminating intercompany transactions. 🔹 Leases: Capital (finance) vs. operating leases — impact on balance sheet and expenses. 🔹 Impairment & Write-offs: Recognizing permanent declines vs. eliminating worthless assets. 🔹 Risk Management: Hedging with derivatives vs. speculation for profit. 🔹 Taxes: Deferred tax assets & liabilities from timing differences. 🔹 Revenue & Expense Recognition: Matching principle under IFRS/GAAP. 🔹 Value Creation Metrics: EVA (Economic Value Added) & residual income. 🔹 Other Essentials: Comprehensive income vs. OCI, provisions vs. contingent liabilities, goodwill vs. intangible assets. Mastering these distinctions turns financial statements into more than compliance reports — they become strategic tools for decision-making. 💡 Which of these concepts do you find the most challenging in practice: leases, consolidation, or deferred taxes? #FinancialAccounting #IFRS #GAAP #Valuation #Consolidation #Finance

Financial reporting implication of modification of terms and contractual cashflows We are pleased to share with you our latest thought leadership material titled " Financial instruments: Financial reporting implication of modification of terms and contractual cashflows " In this article, we discuss the modification of financial instruments and the accounting implications as required by IFRS 9. We also provide practical steps and considerations for reporting entities when accounting for the modification of a financial instrument. In the current economic environment, managing financial assets and liabilities present unique challenges. Navigating through rapidly changing market conditions, economic uncertainty, intricate regulatory scenarios, and unclear future trends has made the modification of terms or cashflows of financial assets and liabilities not just a strategic move, but often a necessity. We believe that this material will be of significant value to you and your organisation, and we encourage you to read it at your convenience. Should you have any questions or require further clarification on any aspect of the document, please do not hesitate to reach out.

Should R&D costs be recognised as an asset rather than an expense?   One of the key challenges in financial reporting is the loss of relevance in the current accounting treatment of R&D costs. Under today’s standards, most internally generated R&D costs are expensed, while an R&D project acquired from third parties is recognised as an asset – a distinction that often does not reflect economic reality. In our paper, co-authored by Shlomi Shuv and Danny Vitan, we propose an alternative model: 🔹 Recognising R&D costs as intangible assets. 🔹 Testing those assets for impairment directly, based on independent cash flows. 🔹 Consequently, eliminating the distinction between internally generated and acquired intangible assets.   This approach could reduce the disincentive for internally generated R&D, better align financial reporting with shareholders’ interests, and create greater consistency with the IFRS Conceptual Framework and the IASB’s research project on intangible assets. Read the full paper here:   https://lnkd.in/dTvS4QBZ

Dear everyone, We are pleased to share with you our latest thought leadership material titled " Financial instruments: Financial reporting implication of modification of terms and contractual cashflows " In this article, we discuss the modification of financial instruments and the accounting implications as required by IFRS 9. We also provide practical steps and considerations for reporting entities when accounting for the modification of a financial instrument. In the current economic environment, managing financial assets and liabilities present unique challenges. Navigating through rapidly changing market conditions, economic uncertainty, intricate regulatory scenarios, and unclear future trends has made the modification of terms or cashflows of financial assets and liabilities not just a strategic move, but often a necessity. We believe that this material will be of significant value to your organization, and we encourage you to read it at your convenience. Should you have any questions or require further clarification on any aspect of the document, please do not hesitate to reach out.

📘 Advanced Financial Accounting: Key Concepts Simplified 📘 Financial accounting at an advanced level isn’t just about recording — it’s about judgment, measurement, and comparison. Here are some of the most critical concepts every professional should master: 🔹 Valuation: Fair value vs. historical cost, mark-to-market vs. mark-to-model. 🔹 Consolidation: Parent + subsidiaries, equity method, eliminating intercompany transactions. 🔹 Leases: Capital (finance) vs. operating leases — impact on balance sheet and expenses. 🔹 Impairment & Write-offs: Recognizing permanent declines vs. eliminating worthless assets. 🔹 Risk Management: Hedging with derivatives vs. speculation for profit. 🔹 Taxes: Deferred tax assets & liabilities from timing differences. 🔹 Revenue & Expense Recognition: Matching principle under IFRS/GAAP. 🔹 Value Creation Metrics: EVA (Economic Value Added) & residual income. 🔹 Other Essentials: Comprehensive income vs. OCI, provisions vs. contingent liabilities, goodwill vs. intangible assets. Mastering these distinctions turns financial statements into more than compliance reports — they become strategic tools for decision-making. 💡 Which of these concepts do you find the most challenging in practice: leases, consolidation, or deferred taxes? #FinancialAccounting #IFRS #GAAP #Valuation #Consolidation #Finance #Egypt #مصر #Audit #AccountingLeadership

#DailyGrowth | Day 16 – September 5, 2025 I studied IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations. Key Concepts 1. Held for Sale: A non-current asset (or disposal group) is classified as held for sale if its carrying amount will be recovered principally through a sale transaction rather than through continuing use. i. It must be available for immediate sale in its present condition. ii. The sale must be highly probable, usually within 12 months. 2. Measurement: Once classified as held for sale, the asset is measured at the lower of: i. Carrying amount, and ii. Fair value less costs to sell. 3. Depreciation: Assets held for sale are no longer depreciated. 4. Discontinued Operations: A discontinued operation is a component of an entity that has been disposed of or is classified as held for sale, and represents a separate major line of business or geographical area of operations. * Results of discontinued operations must be presented separately in the statement of profit or loss. Takeaway IFRS 5 ensures that when businesses restructure or dispose of parts of their operations, stakeholders clearly see what is continuing and what is being discontinued. This enhances clarity and helps users of financial statements make better decisions. #DailyGrowth #ICANPrep #FinanceJourney

From Piña Coladas to P&L: are you ready for budgeting season? Every September, finance teams get caught in the same cycle: frantic templates, endless versions, late approvals. The “budget season” feels more like a race than a strategy. Instead, make budgeting a continuous process where forecasts stay up to date, departments add their numbers directly, and consolidation happens automatically. September is no longer about panic, but about fine-tuning next year’s strategy with confidence. Read more: https://lnkd.in/dANMpJDh

I’ve been away from posting about IFRS and practical financial approaches lately — and here’s why. For the past few weeks, I’ve been working with a U.S. client on the most complex financial model I’ve ever built… and I’m thrilled to share that it’s finally complete! What made this model so challenging? Four distinct revenue streams covering services, products, and subscriptions. Phase-wise revenue recognition for each stream. COGS modeling tied to phase dates, headcount data, and FTE tables. SG&A allocation based on departments, employees, and multiple bonus structures. Fully integrated financial statements (BS, CF, IS) projected for five years, including quarterly IS. Interactive dashboard and comprehensive sensitivity analysis for decision-making. Key Excel tools I used: INDEX-MATCH, XLOOKUP, IFS, EDATE, conditional formatting, named ranges, data validation, SUMIFS, ROUND, CHOOSE, DATEDIF all working together to handle real-world complexity. The best part? Here’s what my U.S. client had to say: “This was a complex financial modeling project and it was completed with skill and efficiency. I will definitely be calling again. Wall Street analysts with years of training are half as capable.” This was the toughest model I’ve prepared to date, and it perfectly reflects the kind of scenarios finance professionals face in the real world — where accounting, operations, and strategy all intersect. Excited to get back to sharing IFRS insights and practical finance content with you all. If you’ve ever worked on a highly complex model, I’d love to hear — what was your biggest challenge? #FinancialModeling #CFO #FPandA #CorporateFinance #FinanceLeadership #IFRS #FinancialAnalysis #ExcelExperts #SaudiArabia #BusinessStrategy

📊 What is GAAP & Why It Matters in Accounting 💼 GAAP = Generally Accepted Accounting Principles – the official rules for financial reporting in the U.S. These standards are designed to keep financial reporting clear, consistent, and trustworthy. ✅ Why GAAP Matters • Ensures accurate and reliable financial records • Makes company reports easy to compare across industries • Helps prevent fraud and accounting errors 🔑 5 Key GAAP Principles 1️⃣ Consistency – Use the same accounting methods year after year 2️⃣ Accrual Principle – Record transactions when they occur, not just when cash is received 3️⃣ Full Disclosure – Share all material financial details with stakeholders 4️⃣ Going Concern – Assume the company will continue operating in the future 5️⃣ Matching Principle – Match expenses with the revenues they helped generate 👉 In short, GAAP builds trust in financial reporting, giving investors, managers, and regulators confidence in the numbers. #Accounting #GAAP #Finance #FinancialReporting #USGAAP #Consistency