International Financial Statement Analysis (CFA Institute Investment Series) [Hardcover]

Foreword Preface Acknowledgments About the CFA Institute Investment Series  Chapter 1 Financial Statement Analysis: An Introduction Learning Outcomes 1 Introduction 2 Scope of Financial Statement Analysis 3 Major Financial Statements and Other Information Sources 4 Financial Statement Analysis Framework 5 Summary Problems Chapter 2 Financial Reporting Mechanics Learning Outcomes 1 Introduction 2 The Classification of Business Activities 3 Accounts and Financial Statements 4 The Accounting Process 5 Accruals and Valuation Adjustments 6 Accounting Systems 7 Using Financial Statements in Security Analysis 8 Summary Appendix 2A: A Debit/Credit Accounting System Problems Chapter 3 Financial Reporting Standards Learning Outcomes 1 Introduction 2 The Objective of Financial Reporting 3 Standard–Setting Bodies and Regulatory Authorities 4 Convergence of Global Financial Reporting Standards 5 The International Financial Reporting Standards Framework 6 Effective Financial Reporting 7 Comparison of IFRS with Alternative Reporting Systems 8 Monitoring Developments in Financial Reporting Standards 9 Summary Problems Chapter 4 Understanding Income Statements Learning Outcomes 1 Introduction 2 Components and Format of the Income Statement 3 Revenue Recognition 4 Expense Recognition 5 Non–Recurring Items and Non–Operating Items 6 Earnings per Share 7 Analysis of the Income Statement 8 Comprehensive Income 9 Summary Problems Chapter 5 Understanding Balance Sheets Learning Outcomes 1 Introduction 2 Components and Format of the Balance Sheet 3 Current Assets and Current Liabilities 4 Non–Current Assets 5 Non–Current Liabilities 6 Equity 7 Analysis of the Balance Sheet 8 Summary Problems Chapter 6 Understanding Cash Flow Statements Learning Outcomes 1 Introduction 2 Components and Format of the Cash Flow Statement 3 The Cash Flow Statement: Linkages and Preparation 4 Cash Flow Statement Analysis 5 Summary References Problems Chapter 7 Financial Analysis Techniques Learning Outcomes 1 Introduction 2 The Financial Analysis Process 3 Analytical Tools and Techniques 4 Common Ratios Used in Financial Analysis 5 Equity Analysis 6 Credit Analysis 7 Business and Geographic Segments 8 Model Building and Forecasting 9 Summary References Problems Chapter 8 Financial Statement Analysis: Applications Learning Outcomes 1 Introduction 2 Application: Evaluating Past Financial Performance 3 Application: Projecting Future Financial Performance 4 Application: Assessing Credit Risk 5 Application: Screening for Potential Equity Investments 6 Analyst Adjustments to Reported Financials 7 Summary References Problems Chapter 9 Inventories Learning Outcomes 1 Introduction 2 Cost of Inventories 3 Inventory Valuation Methods 4 The LIFO Method 5 Inventory Method Changes 6 Inventory Adjustments 7 Evaluation of Inventory Management 8 Summary Problems Chapter 10 Long–Lived Assets Learning Outcomes 1 Introduction 2 Acquisition of Long–Lived Assets 3 Depreciation and Amortisation of Long–Lived Assets 4 The Revaluation Model 5 Impairment of Assets 6 Derecognition 7 Presentation and Disclosures 8 Investment Property 9 Leasing Summary Problems Chapter 11 Income Taxes Learning Outcomes 1 Introduction 2 Differences between Accounting Profit and Taxable Income 3 Determining the Tax Base of Assets and Liabilities 4 Temporary and Permanent Differences between Taxable and Accounting Profit 5 Unused Tax Losses and Tax Credits 6 Recognition and Measurement of Current and Deferred Tax 7 Presentation and Disclosure 8 Comparison of IFRS and U.S. GAAP Summary Problems Chapter 12 Non–Current (Long–Term) Liabilities Learning Outcomes 1 Introduction 2 Bonds Payable 3 Leases 4 Introduction to Pensions and Other Post–Employment Benefits 5 Evaluating Solvency: Leverage and Coverage Ratios 6 Summary Problems Chapter 13 Employee Compensation: Post–Employment and Share–Based Learning Outcomes 1 Introduction 2 Pensions and Other Post–Employment Benefits 3 Share–Based Compensation 4 Summary References Problems Chapter 14 Intercorporate Investments Learning Outcomes 1 Introduction 2 Basic Corporate Investment Categories 3 Investments in Financial Assets 4 Investments in Associates 5 Joint Ventures 6 Business Combinations 7 Variable Interest and Special Purpose Entities 8 Summary Problems Chapter 15 Multinational Operations Learning Outcomes 1 Introduction 2 Foreign Currency Transactions 3 Translation of Foreign Currency Financial Statements Summary Problems Chapter 16 Evaluating Financial Reporting Quality Learning Outcomes 1 Introduction 2 Discretion in Accounting Systems 3 Financial Reporting Quality: Definitions, Issues, and Aggregate Measures 4 A Framework for Identifying Low–Quality Financial Reporting 5 The Implications of Fair Value Reporting for Financial Reporting Quality: A Brief Discussion 6 Summary Problems Chapter 17 Integration of Financial Statement Analysis Techniques Learning Outcomes 1 Introduction 2 Case Study 1: Long–term equity investment 3 Case Study 2: Off–Balance Sheet Leverage From Operating Leases 4 Case Study 3: Anticipating Effects Of Changes in Accounting Standards 5 Summary Problems Glossary References About the Authors About the CFA Program Index