The Analysis and Use of Financial Statements

THE ANALYSIS AND USE OF FINANCIAL STATEMENTS, THIRD EDITIONintegrates accounting economic theory, and empirical research toprovide a framework for financial statement analysis in auser–oriented context. Co–written by academics and practitioners,this is the only text that reaches students to first understand howfinancial statements are generated. Principles of analysis are thenillustrated through the extensive use of actual corporate financialstatements.

Features:
∗ NEW cases have been added to the web size to develop students′research and analytical skills.
∗ Accounting Standards (US and International) have been updated toreflect the latest pronouncements.
∗ Real companies used to illustrate financial analysistechniques.
∗ End–of–chapter problem material based on US and non – USfinancial statements such as Holmen, Roche & TakadaChemical.
∗ Comprehensive coverage of financial statement analysis tools andtechniques.
∗ Companion Web site which includes annual reports of companiesfeatured in the third edition, appendices, cases, plus updates fornew financial accounting standards.

1. Framework for Financial Statement Analysis.

2. Accounting Income and Assets: The Accrual Concept.

3. Analysis of Cash Flows.

4. Foundations of Ratio and Financial Analysis.

5. Empirical Research: Implications for Financial StatementAnalysis.

6. Analysis of Inventories.

7. Analysis of Long–Lived Assets: Part I TheCapitalization Decision.

8. Analysis of Long–Lived Assets: Part II Analysis ofDepreciation and Impairment.

9. Analysis of Income Taxes.

10. Analysis of Financing Liabilities.

11. Leases and Off–Balance–Sheet Debt.

12. Pensions and Other Employee Benefits.

13. Analysis of Intercorporate Investments.

14. Analysis of Business Combinations.

15. Analysis of Multinational Operations.

16. Derivatives and Hedging Activities.

17. Analysis of Financial Statements: A Synthesis.

18. Accounting– and Finance–Based Measures of Risk.

19. Valuation and Forecasting.

Present Value Tables.

Bibliography.

Index.