Affirm Q1 FY2027 Earnings: Net Income Doubles to $164M as Credit-Loss Provisions Rise 59%
Affirm Q1 FY2027 net income doubled to $164M on 35% revenue growth, while its credit-loss provision rose 59% and the allowance reached 6.3% of loans.
#financial-statements
Financial Statements
Understand and prepare balance sheets, income statements, and cash flow reports
Apple FY2026 Earnings: Net Income Up 18%, Buybacks Down 5%, and Retained Earnings Back Above Zero
Apple's FY2026 net income rose 18% to $132.2B as buybacks fell 5%, leaving retained earnings at a $13.7B surplus — the first year-end above zero since 2021.
Patent and Trademark Costs: What to Expense, What to Capitalize, and What to Amortize
R&D is expensed even when it succeeds; only patent registration fees capitalize and amortize, while trademarks sit unamortized until impaired.
Redeemable Preferred Stock and Temporary Equity, Explained: Why Shares the Holder Can Put Back to You Sit Between Debt and Equity
Preferred shares the holders can put back sit in temporary equity, not equity — and quarterly accretion shrinks earnings available to common stock.
The Two-Class Method for EPS, Explained: How Earnings Get Split Between Common Stock and Participating Securities
Participating securities take their cut before EPS is computed — declared dividends first, then undistributed earnings pro rata by participation rights.
Additional Funds Needed (AFN), Explained: How the Percent-of-Sales Method Forecasts Your Next Growth Dollar — Required Assets, Spontaneous Liabilities, Retained Earnings, and What a Negative AFN Means
AFN equals required asset growth minus spontaneous liabilities minus retained earnings — the outside funding your sales forecast demands.
Troubled Debt Restructurings, Explained: How Loan Workouts Are Accounted For on Both Sides of the Table
A troubled debt restructuring needs financial difficulty plus a lender concession — book a gain if future payments fall below carrying amount.
Fair Value Hierarchy, Explained: How ASC 820 Ranks What Your Numbers Are Built On
ASC 820 ranks fair-value inputs in three levels — market quotes, observable inputs, unobservable models — and the lowest significant input sets the level.
The LIFO Conformity Rule, Explained: Why Electing LIFO for Tax Means Using It on Your Financial Statements Too
Elect LIFO for tax and every owner and lender statement must use LIFO too — Section 472 lets the IRS terminate the election over one FIFO report.
Audit Confirmations, Explained: How Auditors Verify Cash, Receivables, and Lawsuits With Third Parties
Auditors confirm cash, receivables, and lawsuits directly with banks, customers, and lawyers — replies bypass you, and every exception gets investigated.
Common-Control Leases, Explained: How ASU 2023-01 Lets Private Companies Use Written Terms That Aren't Legally Enforceable
ASU 2023-01 lets private companies use written, even unenforceable, terms for common-control leases and amortize improvements over useful life.
Long-Lived Asset Impairment, Explained: The Two-Step Recoverability Test Under ASC 360
Impairment hits only when undiscounted cash flows fall short of carrying amount; the loss is book value minus fair value, and GAAP never reverses it.