After completing this chapter, you will be able to do the following:

  • describe the components of the income statement and alternative presentation formats of that statement;
  • describe general principles of revenue recognition and accrual accounting, specific revenue recognition applications (including accounting for long-term contracts, installment sales, barter transactions, gross and net reporting of revenue), and implications of revenue recognition principles for financial analysis;
  • calculate revenue given information that might influence the choice of revenue recognition method;
  • describe general principles of expense recognition, specific expense recognition applications, and implications of expense recognition choices for financial analysis;
  • describe the financial reporting treatment and analysis of non-recurring items (including discontinued operations, extraordinary items, unusual or infrequent items) and changes in accounting standards;
  • distinguish between the operating and non-operating components of the income statement;
  • describe how earnings per share is calculated and calculate and interpret a company's earnings per share (both basic and diluted earnings per share) for both simple and complex capital structures;
  • distinguish between dilutive and antidilutive securities, and describe the implications of each for the earnings per share calculation;
  • convert income statements to common-size income statements; ...

Get International Financial Statement Analysis Workbook, 3rd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.