Infosys: Assessing Earnings Quality - Primer

Name: Infosys: Assessing Earnings Quality - Primer (English version)
SKU: W39424

Soumik Bhusan, Amrinder Singh, Sreesitava Banerjee

Product #:W39424

Supplier:Ivey

Discipline:Accounting, Finance

Details:Case (PDF) • 5 pages • 2025-01-09

Subjects:

Finance and investing Accounting

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$9.71

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This primer accompanies W39421. It is designed to provide essential background information for students, and should be read prior to the case discussion.

Learning Objectives

The examples in this primer provide students with a preview of the accrual method and the connection between profit and loss statements and cash flow statements. Preparing profit and loss statements using the accrual method recognizes income when earned and expenses when incurred. Preparing profit and loss statements using the cash method yields a cash flow statement. The difference between using the accrual or cash methods is the accrual effect, which is captured in the adjustments of the cash flow statement through working capital changes. The primer also serves as a refresher of the DuPont framework, which can help students understand the concept of DuPont analysis.