International Financial Statement Analysis

PREFACE

International Financial Statement Analysis is a practically oriented introduction to financial statement analysis. Each chapter covers one major area of financial statement analysis and is written by highly credentialed experts. By taking a global perspective on accounting standards, with a focus on International Financial Reporting Standards (IFRS), and by selecting a broad range of companies for illustration, the book well equips the reader for practice in today’s global marketplace.

The book adopts a structured presentation style, clearly explaining and illustrating each major concept, tool, or technique as it is introduced. Technical terms are defined in their first major occurrence, and terminology is used consistently across the chapters. No prior accounting background is assumed of the reader. In more detail, chapter coverage is as follows:

Chapter 1, Financial Statement Analysis: An Introduction, provides an integrative perspective on financial statement analysis and a foundation for the entire book. After motivating the uses of financial statement analysis, the chapter discusses the key financial statements and other information sources relevant to financial analysis. The chapter concludes by presenting a framework for conducting any financial statement analysis.

Chapter 2, Financial Reporting Mechanics, explains how accounting systems record a company’s transactions with suppliers, customers, employees, capital suppliers, and taxing authorities and how those ...