International Financial Statement Analysis Workbook

Thomas R. Robinson

• Publisher: Wiley
• Year: 2020
• Print ISBN: 9781119628095
• eBook ISBN: 9781119628125
• Edition: 4
• Topic: Business
• Subtopic: Investments & Securities
• Index: Business

Practice the concepts, tools, and techniques of international financial statement analysis International Financial Statement Analysis Workbook gives busy professionals and those aspiring to a financial career a hands-on reference for understanding and applying the concepts and methodologies essential to accurate financial analysis. A companion to the International Financial Statement Analysis text, this practical workbook includes learning outcomes, chapter summaries, and problems that are designed to build skills and boost confidence before applying the concepts to real-world cases.

The workbook offers an opportunity to test your understanding of the standards and mechanics of financial reporting and makes use of the text's tools and techniques. This informative guide—which has practical application across international borders—aids in the understanding of financial reporting standards, income statements, balance sheets, cash flow statements, inventories, long-lived assets, income taxes, and much more. International Financial Statement Analysis Workbook is designed to facilitate information retention and build a strong foundation in financial statement analysis.

It's impossible to tell how well a subject is mastered without applying the relevant concepts to situations based in the real world. International Financial Statement Analysis Workbook offers the opportunity to:

• Work topic-specific practice problems to facilitate intuitive understanding
• Review each topic quickly using clear chapter summaries
• Understand each chapter's objective to avoid missing key information
• Practice important methods and techniques before applying them in the real world

International Financial Statement Analysis Workbook, Fourth Edition provides the most up-to-date knowledge and helps to apply that knowledge with carefully constructed problems.

PART I
Learning Objectives, Summary Overview, and Problems

CHAPTER 1
Introduction to Financial Statement Analysis

Learning Outcomes

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

• describe the roles of financial reporting and financial statement analysis;
• describe the roles of the statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows in evaluating a company’s performance and financial position;
• describe the importance of financial statement notes and supplementary information—including disclosures of accounting policies, methods, and estimates—and management’s commentary;
• describe the objective of audits of financial statements, the types of audit reports, and the importance of effective internal controls;
• identify and describe information sources that analysts use in financial statement analysis besides annual financial statements and supplementary information;
• describe the steps in the financial statement analysis framework.

Summary Overview

The information presented in financial and other reports, including the financial statements, notes, and management’s commentary, helps the financial analyst to assess a company’s performance and financial position. An analyst may be called on to perform a financial analysis for a variety of reasons, including the valuation of equity securities, the assessment of credit risk, the performance of due diligence on an acquisition, and the evaluation of a subsidiary’s performance relative to other business units. Major considerations in both equity analysis and credit analysis are evaluating a company’s financial position, its ability to generate profits and cash flow, and its potential to generate future growth in profits and cash flow.

This chapter has presented an overview of financial statement analysis. Among the major points covered are the following:

• The primary purpose of financial reports is to provide information and data about a company’s financial position and performance, including profitability and cash flows. The information presented in the reports —including the financial statements and notes and management’s commentary or management’s discussion and analysis—allows the financial analyst to assess a company’s financial position and performance and trends in that performance.
• The primary fi...

Table of contents

• Cover
• Series
• Title Page
• Copyright
• PART I Learning Objectives, Summary Overview, and Problems
• PART II Solutions
• About the CFA Program
• End User License Agreement