International Financial Statement Analysis: (39 CFA Institute Investment Series)

Up-to-date information on using financial statement analysis to successfully assess company performance, from the seasoned experts at the CFA Institute Designed to help investment professionals and students effectively evaluate financial statements in today's international and volatile markets, amid an uncertain global economic climate, International Financial Statement Analysis, Second Edition compiles unparalleled wisdom from the CFA in one comprehensive volume. Written by a distinguished team of authors and experienced contributors, the book provides complete coverage of the key financial field of statement analysis. Fully updated with new standards and methods for a post crisis world, this Second Edition covers the mechanics of the accounting process; the foundation for financial reporting; the differences and similarities in income statements, balance sheets, and cash flow statements around the world; examines the implications for securities valuation of any financial statement element or transaction, and shows how different financial statement analysis techniques can provide valuable clues into a company's operations and risk characteristics.* Financial statement analysis allows for realistic valuations of investment, lending, or merger and acquisition opportunities* Essential reading for financial analysts, investment analysts, portfolio managers, asset allocators, graduate students, and others interested in this important field of finance* Includes key coverage of income tax accounting and reporting, the difficulty of measuring the value of employee compensation, and the impact of foreign exchange rates on the financial statements of multinational corporations Financial statement analysis gives investment professionals important insights into the true financial condition of a company, and International Financial Statement Analysis, Second Edition puts the full knowledge of the CFA at your fingertips.

Table of Contents:
Foreword Preface Acknowledgments About the CFA Institute Investment Series Chapter 1 Financial Statement Analysis: An Introduction Learning Outcomes 1 Introduction 2 Scope of Financial Statement Analysis 3 Major Financial Statements and Other Information Sources 4 Financial Statement Analysis Framework 5 Summary Problems Chapter 2 Financial Reporting Mechanics Learning Outcomes 1 Introduction 2 The Classification of Business Activities 3 Accounts and Financial Statements 4 The Accounting Process 5 Accruals and Valuation Adjustments 6 Accounting Systems 7 Using Financial Statements in Security Analysis 8 Summary Appendix 2A: A Debit/Credit Accounting System Problems Chapter 3 Financial Reporting Standards Learning Outcomes 1 Introduction 2 The Objective of Financial Reporting 3 Standard-Setting Bodies and Regulatory Authorities 4 Convergence of Global Financial Reporting Standards 5 The International Financial Reporting Standards Framework 6 Effective Financial Reporting 7 Comparison of IFRS with Alternative Reporting Systems 8 Monitoring Developments in Financial Reporting Standards 9 Summary Problems Chapter 4 Understanding Income Statements Learning Outcomes 1 Introduction 2 Components and Format of the Income Statement 3 Revenue Recognition 4 Expense Recognition 5 Non-Recurring Items and Non-Operating Items 6 Earnings per Share 7 Analysis of the Income Statement 8 Comprehensive Income 9 Summary Problems Chapter 5 Understanding Balance Sheets Learning Outcomes 1 Introduction 2 Components and Format of the Balance Sheet 3 Current Assets and Current Liabilities 4 Non-Current Assets 5 Non-Current Liabilities 6 Equity 7 Analysis of the Balance Sheet 8 Summary Problems Chapter 6 Understanding Cash Flow Statements Learning Outcomes 1 Introduction 2 Components and Format of the Cash Flow Statement 3 The Cash Flow Statement: Linkages and Preparation 4 Cash Flow Statement Analysis 5 Summary References Problems Chapter 7 Financial Analysis Techniques Learning Outcomes 1 Introduction 2 The Financial Analysis Process 3 Analytical Tools and Techniques 4 Common Ratios Used in Financial Analysis 5 Equity Analysis 6 Credit Analysis 7 Business and Geographic Segments 8 Model Building and Forecasting 9 Summary References Problems Chapter 8 Financial Statement Analysis: Applications Learning Outcomes 1 Introduction 2 Application: Evaluating Past Financial Performance 3 Application: Projecting Future Financial Performance 4 Application: Assessing Credit Risk 5 Application: Screening for Potential Equity Investments 6 Analyst Adjustments to Reported Financials 7 Summary References Problems Chapter 9 Inventories Learning Outcomes 1 Introduction 2 Cost of Inventories 3 Inventory Valuation Methods 4 The LIFO Method 5 Inventory Method Changes 6 Inventory Adjustments 7 Evaluation of Inventory Management 8 Summary Problems Chapter 10 Long-Lived Assets Learning Outcomes 1 Introduction 2 Acquisition of Long-Lived Assets 3 Depreciation and Amortisation of Long-Lived Assets 4 The Revaluation Model 5 Impairment of Assets 6 Derecognition 7 Presentation and Disclosures 8 Investment Property 9 Leasing Summary Problems Chapter 11 Income Taxes Learning Outcomes 1 Introduction 2 Differences between Accounting Profit and Taxable Income 3 Determining the Tax Base of Assets and Liabilities 4 Temporary and Permanent Differences between Taxable and Accounting Profit 5 Unused Tax Losses and Tax Credits 6 Recognition and Measurement of Current and Deferred Tax 7 Presentation and Disclosure 8 Comparison of IFRS and U.S. GAAP Summary Problems Chapter 12 Non-Current (Long-Term) Liabilities Learning Outcomes 1 Introduction 2 Bonds Payable 3 Leases 4 Introduction to Pensions and Other Post-Employment Benefits 5 Evaluating Solvency: Leverage and Coverage Ratios 6 Summary Problems Chapter 13 Employee Compensation: Post-Employment and Share-Based Learning Outcomes 1 Introduction 2 Pensions and Other Post-Employment Benefits 3 Share-Based Compensation 4 Summary References Problems Chapter 14 Intercorporate Investments Learning Outcomes 1 Introduction 2 Basic Corporate Investment Categories 3 Investments in Financial Assets 4 Investments in Associates 5 Joint Ventures 6 Business Combinations 7 Variable Interest and Special Purpose Entities 8 Summary Problems Chapter 15 Multinational Operations Learning Outcomes 1 Introduction 2 Foreign Currency Transactions 3 Translation of Foreign Currency Financial Statements Summary Problems Chapter 16 Evaluating Financial Reporting Quality Learning Outcomes 1 Introduction 2 Discretion in Accounting Systems 3 Financial Reporting Quality: Definitions, Issues, and Aggregate Measures 4 A Framework for Identifying Low-Quality Financial Reporting 5 The Implications of Fair Value Reporting for Financial Reporting Quality: A Brief Discussion 6 Summary Problems Chapter 17 Integration of Financial Statement Analysis Techniques Learning Outcomes 1 Introduction 2 Case Study 1: Long-term equity investment 3 Case Study 2: Off-Balance Sheet Leverage From Operating Leases 4 Case Study 3: Anticipating Effects Of Changes in Accounting Standards 5 Summary Problems Glossary References About the Authors About the CFA Program Index

About the Author :
Thomas R. Robinson, CFA, is Managing Director of the Education Division of CFA Institute where he leads and develops the teams responsible for producing and delivering educational content and examinations to candidates, members, and other investment professionals encompassing the CFA Program, CIPM Program, Lifelong Learning, Private Wealth, Publications, and Conferences. Elaine Henry, CFA, is an Assistant Professor of Accounting at the University of Miami where she teaches courses in accounting, financial statement analysis, and valuation. After working in corporate finance at Lehman Brothers, strategy consulting at McKinsey & Company, and corporate banking at Citibank, she obtained a PhD from Rutgers University where she majored in accounting and minored in finance. Wendy L. Pirie, CFA, is Director, Curriculum Projects, in the Education Division of CFA Institute. Prior to joining CFA Institute in 2008, she taught finance, accounting, statistics, taxation, business law, and marketing for over twenty years at both large and small public and private universities, religious colleges, and military academies. Her work has been published in the Journal of Financial Research and the Journal of Economics and Finance. She holds a PhD from Queen's University in Kingston, Ontario, and MBAs from the University of Toronto and the University of Calgary. Pirie is also coauthor of Investments: Principles of Portfolio and Equity Analysis (Wiley). Michael A. Broihahn, CFA, is an Associate Professor of Accounting and the Director of Graduate Programs at Barry University in Miami, Florida. His teaching and research interests encompass financial accounting, auditing, and professional ethics. He currently serves CFA Institute in a number of different capacities.