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Accounting for Managers: Interpreting Accounting Information for Decision-Making, Canadian Edition by Eckhard Schumann, Sandy M. Kizan, Paul M. Collier

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CHAPTER 5

Interpreting Financial Reports and Alternative Perspectives

LEARNING OBJECTIVES

After reading this chapter, you should be able to answer the following questions:

images What information is typically disclosed in a public company's annual report?

images What is the Management's Discussion and Analysis (MD&A) and what information is normally disclosed in an MD&A?

images How are a company's profitability, liquidity, leveraging, activity/efficiency, and shareholder return calculated and then analyzed?

images What is meant by intellectual capital and institutional theory, and how can these two perspectives be used as alternatives to financial reporting.

images How can corporate social and environmental reporting be used to supplement financial reporting?

This chapter begins with an overview of a company's annual report and the Management's Analysis and Discussion (MD&A) section, and shows how ratio analysis can be used to interpret financial reports. This interpretation covers profitability, liquidity (cash flow), ...

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