Financial Statements: Economic Analysis and Interpretation

"Financial Statements: Economic analysis and interpretation", explains the logic of financial statements and how we use them to analyse firms in economic terms. The book is aimed both at practitioners and students and is fully international in scope. The approach and coverage are quite different to previous books on accounting. The book looks at financial statements from the perspective of users. It employs an economic model from investment theory to organize the discussion, leading to a focus on the integrity of the balance sheet - on the completeness of the balance sheet and on the valuation of assets and liabilities. This approach brings a remarkable amount of order and simplicity to an otherwise complex subject. So, though the book is quite short, it contains a comprehensive review of how financial statements are analysed in practice, and of 'GAAP' or Generally Accepted Accounting Principles, comparing the two dominant systems, US GAAP and IFRS. The book is in four parts: Part 1, Introduction to accounting, explain the logic of accounting and describes the content of a balance sheet and an income statement. It shows how a firm's income depends on the 'accounting model' it uses - that is, what assets and liabilities are recognized in the balance sheet and at what values. Part 2, Return on capital, shows how to calculate the return that a firm is earning on its capital. Using financial statement data to calculate a 'value metric', which is a measure of investment return that can be compared to the firm's cost of capital, is a stern test of accounting.
ASIN: 1845780108
VSKU: BVV.1845780108.A
Condition: Acceptable
Author/Artist:Chris Higson
Binding: Hardcover
Note: Any images shown are stock photographs and product may differ from what is shown.
Condition Notes: The item is very worn but is perfectly usable. Signs of wear can include aesthetic issues such as scratches, dents, worn and creased covers, folded page corners and minor liquid stains. All pages and the cover are intact, but the dust cover may be missing. Pages may include moderate to heavy amount of notes and highlighting, but the text is not obscured or unreadable. Page edges may have foxing age related spots and browning . May NOT include discs, access code or other supplemental materials.