An updated new edition of the comprehensive guide to reading and understanding financial reports
Financial reports provide vital information to investors, lenders, and managers. Yet, the financial statements in a financial report seem to be written in a foreign language that only accountants can understand. This new Eighth Edition of How to Read a Financial Report breaks through that language barrier, clears away the fog, and offers a plain-English user's guide to financial reports. This updated edition features new information on the move toward separate financial and accounting reporting standards for private companies, the emergence of websites offering financial information, pending changes in the auditor's report language and what this means to investors, and requirements for XBRL tagging in reporting to the SEC, among other topics.
Makes it easy to understand what financial reports really say
Updated to include the latest information financial reporting standards and regulatory changes
Written by an author team with a combined 50-plus years of experience in financial accounting
With this new edition of How to Read a Financial Report, investors will find everything they need to fully understand the profit, cash flow, and financial condition of any business.
Table of Contents
- List of Exhibits
- Preface to the Eighth Edition
Part One: Fundamentals
- Chapter 1: Starting with Cash Flows
- Chapter 2: Three Financial Statements
- Chapter 3: Profit Accounting
- Chapter 4: Profit Isn’t Everything
Part Two: Connections
- Chapter 5: Sales Revenue and Accounts Receivable
- Chapter 6: Cost of Goods Sold Expense and Inventory
- Chapter 7: Inventory and Accounts Payable
- Chapter 8: Operating Expenses and Accounts Payable
- Chapter 9: Operating Expenses and Prepaid Expenses
- Chapter 10: Depreciation Expense and Property, Plant, and Equipment; Intangible Assets
- Chapter 11: Accruing the Liability for Unpaid Expenses
- Chapter 12: Income Tax Expense and Its Liability
- Chapter 13: Net Income and Retained Earnings; Earnings per Share (EPS)
Part Three: Cash Flow
- Chapter 14: Cash Flow from Operating (Profit-Making) Activities
- Chapter 15: Cash Flows from Investing and Financing Activities
- Chapter 16: Growth and Decline Impacts on Cash Flow
Part Four: Analysis
- Chapter 17: Footnotes to Financial Statements
- Chapter 18: Financial Statement Ratios
- Chapter 19: Profit Analysis for Business Managers
Part Five: Truthfulness
- Chapter 20: Choosing Accounting Methods and Massaging the Numbers
- Chapter 21: Audits of Financial Reports
Chapter 22: Basic Questions, Basic Answers
- When You Sell a Stock Does the Company Get Your Money?
- Are Financial Reports Reliable and Trustworthy?
- Nevertheless, Are Some Financial Statements Misleading and Fraudulent?
- Is It Worth Your Time to Compute Financial Statement Ratios?
- Why Read Financial Statements, Then, If You Won’t Find Information That Has Been Overlooked by Others?
- The Financial Statements and Footnotes of Large Public Companies Would Take Several Hours to Read Carefully. What’s the Alternative?
- Is There Any One Basic Litmus Test for a Quick Gauge of a Company’s Financial Performance?
- Do Financial Statements Report the Truth, the Whole Truth, and Nothing but the Truth?
- Does Its Financial Report Explain the Basic Profit-Making Strategy of the Business?
- Does the Market Price of a Public Company’s Stock Shares Depend Directly and Only on the Information Reported in Its Financial Statements?
- Does the Balance Sheet of a Private Business Tell the Market Value of the Business?
- Do Books on Investing and Personal Finance Refer to Financial Statements?
- A Very Short Summary
- Chapter 23: Small Business Financial Reporting
- About the Authors
- Title: How to Read a Financial Report: Wringing Vital Signs Out of the Numbers, 8th Edition
- Release date: January 2014
- Publisher(s): Wiley
- ISBN: 9781118735589