Financial Statement Analysis

Updated to reflect contemporary financial situations using current illustrative examples to address the complications that can arise when financial analysts attempt to apply textbook knowledge instead of real-world, forward-looking analysis. The text includes tips for maximizing accuracy of forecasts, and advises the reader on how to use healthy scepticism to reach sound conclusions through a structured approach to credit and equity evaluation Expanded coverage includes: accounting for mergers; country-to-country variations in accounting methods; revenue recognition; new techniques for analyzing credit risk; inventory accounting; the auditor's role; and an analysis of the politics of rule-making for financial reporting.