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International Financial Statement Analysis
book

International Financial Statement Analysis

by CFA Thomas R. Robinson, CFA Hennie van Greuning, CFA Elaine Henry, CFA Michael A. Broihahn
November 2008
Intermediate to advanced content levelIntermediate to advanced
859 pages
25h 22m
English
Wiley
Content preview from International Financial Statement Analysis
CHAPTER 5
UNDERSTANDING THE BALANCE SHEET
Thomas R. Robinson, CFA CFA Institute Charlottesville, Virginia
 
Hennie van Greuning, CFA World Bank Washington, DC
 
Elaine Henry, CFA University of Miami Miami, Florida
 
Michael A. Broihahn, CFA Barry University Miami, Florida

LEARNING OUTCOMES

After completing this chapter, you will be able to do the following:
• Define and interpret the asset and liability categories on the balance sheet, and discuss the uses of a balance sheet.
• Describe the various formats of balance sheet presentation.
• Compare and contrast current and noncurrent assets and liabilities.
• Explain the measurement bases (e.g., historical cost and fair value) of assets and liabilities, including current assets, current liabilities, tangible assets, and intangible assets.
• List and explain the appropriate classifications and related accounting treatments for financial instruments.
• List and explain the components of shareholders’ equity.
• Interpret balance sheets, common-size balance sheets, the statement of changes in equity, and commonly used balance sheet ratios.

1. INTRODUCTION

The starting place for analyzing a company’s financial position is typically the balance sheet. Creditors, investors, and analysts recognize the value of the balance sheet and also its limitations. The balance sheet provides such users with information on a company’s resources (assets) and its sources of capital (its equity and liabilities/debt). It normally also provides information about ...
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Publisher Resources

ISBN: 9780470460122Purchase book