The Analysis and Use of Financial Statements

THE ANALYSIS AND USE OF FINANCIAL STATEMENTS, THIRD EDITION integrates accounting economic theory, and empirical research to provide a framework for financial statement analysis in a user-oriented context. Co-written by academics and practitioners, this is the only text that reaches students to first understand how financial statements are generated. Principles of analysis are then illustrated through the extensive use of actual corporate financial statements.

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 to reflect the latest pronouncements.

* Real companies used to illustrate financial analysis techniques.

* End-of-chapter problem material based on US and non - US financial statements such as Holmen, Roche &Takada Chemical.

* Comprehensive coverage of financial statement analysis tools and techniques.

* Companion Web site which includes annual reports of companies featured in the third edition, appendices, cases, plus updates for new financial accounting standards.

Presents financial statement analysis from the point of view of equity and credit analysts, for MBA and advanced undergraduate students, as well as professionals. Emphasis is on user oriented analysis, integrated with financial accounting and empirical analysis, with examples based on statements of real companies. Early chapters introduce essentials, while later chapters focus on specific areas of analysis, risk management, and how to use financial data in reporting income, assessing risk, and forecasting. Chapter problems with solutions are based on real corporate data, with some problems adapted from the Chartered Financial Analyst examination program. This second edition moves advanced material to appendices and contains more case material and international content.
Annotation c. Book News, Inc., Portland, OR (booknews.com)

This guide to interpreting financial statements is written from the point of view of financial statement users. It will enable you to make better business and personal investment decisions by understanding how accounting choices affect financial data and how you can adjust reported data to enhance decision making. The book includes comparisons of US with foreign and international accounting standards as well as implications of academic research for financial analysis and decision making. You'll also find discussion and analysis of such timely issues as market value accounting and off-balance-sheet financing techniques. This updated edition emphasizes coverage of international financial reporting.

Accounting Standards (US and International) have been updated to reflect the latest pronouncements.

* An increased international focus with more coverage of IASC and non-US GAAPs and more non-US examples.

Includes bibliographical references (p. 1197-1210) and index.

Gerald I. White, Grace & White, Inc.

Ashwinpaul C. Sondhi, A.C. Sondhi & Associates LLC

Dov Fried, New York University

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 Statement Analysis.

6. Analysis of Inventories.

7. Analysis of Long-Lived Assets: Part I—The Capitalization Decision.

8. Analysis of Long-Lived Assets: Part II—Analysis of Depreciation 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.