Time Value of Money (TVM) is a concept that was covered in Intermediate Accounting I and also in Managerial Finance. Several chapters in Intermediate Accounting II rely on a thorough understanding of TVM concepts. Therefore a review of the TVM concepts is in order.

The specific chapters in Intermediate Accounting II that utilize TVM concepts are Chapter 12 – Investments; Chapter 14 – Bonds and Long-term Notes; and Chapter 15 – Leases.

The review of TVM concepts is broken up into five different parts. Part 1 focuses on terminology. Part 2 looks at future value of a single sum. Part 3 deals with present value of a single sum (specific to Intermediate Accounting II). Part 4 focuses on future value of an ordinary annuity and an annuity due. Part 5 presents present value of an ordinary annuity and an annuity due (specific to Intermediate Accounting II).

The information is presented in the form of narrated PowerPoints that can be viewed on a computer, or a mobile device, as well as PDF handouts. To access the narrated PowerPoints on your IOS device, you need to download the Articulate Mobile Player from the app store.

TVM, Part 1: Terminology (12:29 minutes) – PDF Handout

TVM, Part 2: Future value of a single sum (11:56 minutes) – PDF Handout

TVM, Part 3: Present value of a single sum (13:08 minutes) – PDF Handout

TVM, Part 4: Future value of an annuity (12:17 minutes) – PDF Handout

TVM, Part 5: Present value of an annuity (11:10 minutes) – PDF Handout