Value Investing Is there a regular meetup in NYC? |
| Is there a regular meetup in NYC? Posted: 22 Apr 2019 04:07 PM PDT Hi all. I'm an undergrad student in NYC and was wondering if there is a regular /r/SecurityAnalysis meetup in the city. It would be great to meet up with a group of people and just have some conversations over coffee. Let me know if something already exists, or if anyone would be interested in making some plans. [link] [comments]  |
| Accounting for Uber's hybrid and equity investments made possible by divestiture Posted: 22 Apr 2019 07:41 PM PDT The following questions I intuit can be answered by those who have an understanding of accounting common to companies with complex balance sheets, discontinued operations, and a history of divestitures and don't require a few hours venture into Uber's S-1. I am starting to dig into Uber's notes to consolidated statements which include details on extraordinary additions to the IS, BS, and CF. Essentially Uber records their equity investments in a joint venture with Yandex (MLU B.V.) by noting the net consideration (valued equity holding in MLU B.V. minus cash and equity contributed to MLU B.V. and other Uber assets within the geographical region of Russia) of their investment which saw them divest their wholly-owned subsidiary Uber Russia in exchange for 38% ownership of MLU B.V. and a board seat. This figure (net consideration) when added with the carrying value of assets transferred represents the gain on disposition. And the difference between the cost of Uber's investment in MLU B.V. and Uber's pro rated share of MLU B.V.'s assets is recognized as the basis difference which is largely comprised of equity method investment goodwill. Therefore, it happens that the carrying value of the investment is less than the fair value of consideration received by the 38% stake in MLU B.V. and greater than the basis difference or even net consideration. Therefore, how do I reconcile carrying value if it is different from (in order from largest amount to least) fair value of received consideration, net consideration, gain on disposition, basis difference, equity investment method goodwill. In addition, gain on unrealized investments impacted the IS greatly for FY 2018 based on the first quarter divestiture of Uber Russia and stake in MLU B.V., how could one forecast the impairment account to equity method investments such that the carrying value is increased/reduced and added/subtracted to other income (expense)? Secondly, Uber's divestiture of its Southeast Asian operations were made in exchange for Grab' Series G preferred stock which include a redemption right that requires payments of 6% interest on a compounded basis from the original amount of preferred outstanding. Due to this redemption feature the investment is classified as an available-for-sale debt instrument whose change in fair value is reflected in other comprehensive income (expense) on the IS. It seems to be a stretch to calculate preferred stock as a debt instrument when the only feature that would qualify it as a hybrid instrument is contingent on the lack of existence of a Grab IPO before 2023. What possible reason would Uber have for classifying the investment as a debt instrument, so reporting any possible impairment could be avoided (that preferred is inherently riskier and the accounting may reflect as such)? More broadly, how should these investments be treated in the BS on a forward looking basis? How do they factor into Uber's value in a discounted cash flow framework? [link] [comments]  |
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