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The Analysis And Use Of Financial Statements

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A few comments on the organization and content of the book may be helpful to both
reader and instructor. As already stated, we have integrated accounting, economic
theory, and empirical research into a financial analysis framework. In doing so, we
realize that some topics may be more important to some readers than to others. For
that reason some advanced material (e.g., the Analysis of Oil and Gas Disclosures in
Chapter 7) appears in appendices. Within chapters, we have organized some material
into boxes that are available to interested readers without distracting those who are not
As the globalization of financial markets continues apace, we include discussion
and comparisons of relevant foreign and international (IASC) accounting standards
throughout the text. Some of this material is in separate “international” sections bul
much of it is integrated. As the comparative analysis of companies using differeni
accounting standards is an increasingly common concern, our goal is to help the usei
who must make an investment decision despite the lack of comparability. In somechapters. non-U.S. compinies are used to illustrate international accounting differences. An example is Chapter N (Business Combinations), where the crossbordei
merger of SmithKline (U.S.) and Beecham (U.K.) is used to analyze different mergei
accounting methods. Non-U.S. companies are also used extensively in the cases anc
problem sections.
The first five chapters introduce the essential elements of financial statemen
analysis. Chapter 1 provides the framework, including discussions of data sources am.
the roles of preparers, auditors, and standard setters in the financial reporting process
Chapter 2 describes the accrual method of accounting and its implications foi
financial reporting, leading to a discussion of the income statement and balance sheet
Chapter 3 describes the cash flow statement and cash flow analysis. Chapter 4 present
ratio analysis, suggesting both its advantages and its limits. Chapter 5 reviews empirica
research, emphasizing its implications for financial analysis.
Chapters 6 to 15 focus on specific areas of analysis. ranging from inventorie
to multinational corporations. Throughout these chapters our goal is to show how differences in accounting methods and estimates affect reported financial condition
results of operations (including cash flows), and ratios. In many cases, analytic tech.
niques are used to restore comparability, enhancing the decision usefulness of financia
data. Each chapter includes a discussion of international accounting differences anc
relevant empirical research findings.
Chapter 6 considers the analysis of inventories, where differing methods hav
far-reaching effects on financial data. Chapter 7 (Long-Lived Assets) addresses th
capitalization versus expensing decision, which has pervasive effects on reported finan•
cia! statements. Chapter 8 considers differing methods of allocating capitalized costs tc
operations and the thorny topics of impairment and restructuring. Chapter 9 concerm
income tax accounting. and focuses on the information content of income tax disclos
ures.
Chapter 10, the first of a series of long-term liabilities, provides an analysis ol
varying forms of debt. Chapter 11 turns to off-balance-sheet financing techniques, with
particular emphasis on leases. Chapter 12 considers pension and other postemploymeni
benefits (including stock options).
The next three chapters focus on problems resulting from the combination ol
more than one enterprise. Chapter 13 considers the cost, mark-to-market, equity
method, and consolidation issues resulting from intercorporate investments, including
joint ventures. Chapter 14 presents the alternative methods of accounting for business
combinations, as well as the analysis of leveraged buyout firms (LBOs) and spinoffs.
Chapter 15 describes the impact of changing exchange rates on multinational firms
and suggests how available data can be used to separate exchange rate and accounting
effects from operating results.
Chapter 16 examines risk management activities (including hedging), an area of
inconsistent accounting standards and incomplete disclosures.
Chapters 17 through 19 pull together all previous text material. Chapter 17 shows
how to use financial statement disclosures to prepare current cost balance sheets and
to normalize reported income and cash flows. Such recast data, we believe, provide
superior input for investment decisions. Chapter 18 demonstrates how financial data
can be used to assess different forms of risk. Chapter 19 presents a variety of valuation
models, and relates their use to the material covered earlier in the text. The final
section of Chapter 19 considers forecasting models, for which financial data constitute
the input.

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Ketersediaan

Informasi Detail

Judul Seri

-

No. Panggil

657.3 WHI a

Penerbit

: Jhon Wiley & Sons., 1997

Deskripsi Fisik

xv+1211.;20x25cm

Bahasa

Indonesia

ISBN/ISSN

0 471 11186 4

Klasifikasi

657.3

Tipe Isi

-

Tipe Media

-

Tipe Pembawa

-

Edisi

Second

Subjek

Akuntansi

Info Detail Spesifik

-

Pernyataan Tanggungjawab

-

Versi lain/terkait

Lampiran Berkas

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