Book description
Corporate Financial Reporting and Analysis: A Global Perspective/3e by David Young and Jacob Cohen is an introductory textbook on financial reporting for MBA students. This book is intended to offer the rigor and comprehensive coverage required of an MBA text, while at the same time offering an accessible and practical reference for participants in executive programs. David Young is based at INSEAD Business School in France, and Jacob Cohen is based at MIT Sloan School of Management in the USA.
This book offers a rigorous, yet accessible, treatment of contemporary financial reporting practice. Examples are drawn from a broad range of companies to illustrate key concepts. Particular emphasis is given to the latitude and flexibility granted to managers in reporting financial performance, and the steps that financial statement readers can take to identify potential trouble areas in the accounts. Topics include the analysis and interpretation of the three principal financial statements, revenue recognition, inventory accounting, receivables and bad debts, accounting for long-term assets, provisions and contingencies, income taxes, and the accounting for mergers and acquisitions.
A unique feature of this book is the seamless way in which it deals with differences in U.S. GAAP and IFRS. Both regimes are covered simultaneously, i.e. when a topic is discussed, including the relevant journal entries and disclosures, the discussion applies equally to GAAP companies and to IFRS companies. It doesn't matter whether the company used in a given example is from the U.S., Europe, or elsewhere. Thanks to the ongoing GAAP/IFRS convergence project, the two regimes are close enough to allow for a somewhat generic approach that allows for coverage of both regimes at the same time. In this way, the examples that are covered in the book are relevant to all readers, regardless of which regime dominates in their business environment.
The content of this book has been classroom tested over the past 20 years at INSEAD with the MBA class which has students from 80 different countries.
Table of contents
- Cover
- Contents
- Title
- Copyright
- Dedication
- About the Authors
- Chapter 1: An Introduction to Financial Statements
-
Chapter 2: The Balance Sheet and Income Statement
- A further look at the balance sheet
- Assets
- Liabilities
- Shareholders’ equity
- A further look at the income statement
- Other things you should know about the balance sheet and the income statement
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Appendix 2.1 The mechanics of financial accounting: the double-entry system
- The accounting process in practice
- Key terms and concepts from the appendix
- Key lessons from the appendix
- Problem
- Case study
- Chapter 3: A Brief Overview of GAAP and IFRS: the Framework for Financial Accounting
-
Chapter 4: Revenue Recognition
- Introduction
- Definition: what is revenue?
- Revenue-recognition principles
- When does revenue recognition occur?
- Revenue recognition: the journal entries
- More on long-term contracts
- Revenue-recognition controversies
- Revenue recognition: a checklist
- The future of revenue recognition
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Problems
- Case studies
- Notes
-
Chapter 5: The Statement of Cash Flows
- Introduction
- The reporting of cash flows from operations
- Preparing the statement of cash flows
- Does the statement of cash flows tell us anything new?
- IFRS and the statement of cash flows
- Analyzing the statement of cash flows
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Problems
- Case studies
- Notes
-
Chapter 6: Financial Statement Analysis
- Introduction
- Business and industry analysis
- Accounting analysis
- Financial analysis
- DuPont analysis
- A brief digression on inventory
- ROE and the analysis of financial risk
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Appendix 6.1 An industry and competitive analysis of SAP Group
- A competitive strategy analysis of SAP Group
- Appendix 6.2 Summary of financial statement ratios
- Problems
- Case studies
- Notes
- Chapter 7: Business Valuation and Financial Statement Analysis
-
Chapter 8: Accounting for Receivables and Bad Debts
- Introduction
- Estimating bad debts
- Writing off accounts
- The direct method: an alternative approach
- What happens when written-off accounts are later collected?
- The “aging” of accounts receivable
- Sales returns and allowances
- Analyzing receivables
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Appendix: 8.1 Accounting for loan loss reserves
- Problems
- Case studies
- Notes
- Chapter 9: Accounting for Inventory
-
Chapter 10: Accounting for Property, Plant and Equipment
- Introduction
- Initial recognition of PP&E
- Subsequent expenditures: repair or improvement?
- Accounting for depreciation
- Changes in depreciation estimates or methods
- Asset impairment
- Fair value vs. historical cost
- Divestitures and asset sales
- Intangible assets
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Problems
- Chapter 11: Leases and Off-Balance-Sheet Debt
- Chapter 12: Accounting for Bonds
- Chapter 13: Provisions and Contingencies
- Chapter 14: Accounting for Pensions
-
Chapter 15: Accounting for Income Tax
- Introduction
- Temporary and permanent differences
- Deferred taxes and the balance sheet approach
- The balance sheet approach: an example
- Interpreting income tax disclosures: the case of Intel Corporation
- Why deferred income tax is important
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Problems
- Case study
- Notes
-
Chapter 16: Accounting for Shareholders’ Equity
- Introduction
- Shareholders’ equity: an introduction
- More on contributed capital
- Accounting for stock transactions
- Dividends on common stock
- Stock dividends and stock splits
- Accumulated other comprehensive income
- Convertible bonds
- The statement of shareholders’ equity
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Problems
- Case studies
- Notes
- Chapter 17: Marketable Securities and Investments
-
Chapter 18: Accounting for Mergers and Acquisitions
- Introduction
- Purchase price/cost of acquisition
- Contingent consideration
- Recognition and measurement of identifiable assets
- Subsequent adjustments to acquired assets and liabilities
- Goodwill impairment
- Noncontrolling interest
- Key lessons from the chapter
- Key terms and concepts from the chapter
- Questions
- Problems
- Appendix: Tables for Present Value and Future Value Factors
- Index
Product information
- Title: Corporate Financial Reporting and Analysis, 3rd Edition
- Author(s):
- Release date: May 2013
- Publisher(s): Wiley
- ISBN: 9781118470558
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