International Financial Statement Analysis [Hardcover]

Better analysis for more accurate international financial valuation International Financial Statement Analysis, 4th Edition provides the most up-to-date detail for the successful assessment of company performance and financial position regardless of country of origin. The seasoned experts at the CFA Institute offer readers a rich, clear reference, covering all aspects from financial reporting mechanics and standards to understanding income and balance sheets. Comprehensive guidance toward effective analysis techniques helps readers make real-world use of the knowledge presented, with this new third edition containing the most current standards and methods for the post-crisis world. Coverage includes the complete statement analysis process, plus information on income tax accounting, employee compensation, and the impact of foreign exchange rates on the statements of multinational corporations.

Preface xv

Acknowledgments xvii

About the CFA Institute Investment Series xix

Chapter 1 Introduction to Financial Statement Analysis 1

Learning Outcomes 1

1. Introduction 1

2. Roles of Financial Reporting and Financial Statement Analysis 2

3. Primary Financial Statements and Other Information Sources 8

3.1. Financial Statements and Supplementary Information 9

3.2. Other Sources of Information 28

4. Financial Statement Analysis Framework 28

4.1. Articulate the Purpose and Context of Analysis 30

4.2. Collect Data 30

4.3. Process Data 31

4.4. Analyze/Interpret the Processed Data 31

4.5. Develop and Communicate Conclusions/Recommendations 32

4.6. Follow-Up 32

5. Summary 32

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