Financial Reporting and Analysis
United States Edition
2nd Edition
Published on 24. July 2001
Book
Hardback
1006 pages
978-0-13-032351-4 (ISBN)
Description
This text is designed to reveal the truths hidden behind the numbers in financial reporting and show the pitfalls to avoid when analyzing financial statements. This second edition features expanded coverage of international issues; more real-world companies; a new chapter on income recognition; a new appendix; greater coverage on derivative securities and hedge accounting; and expanded supplements.
More details
Edition
2nd edition
Language
English
Place of publication
United States
Publishing group
Pearson Education (US)
Target group
Professional and scholarly
Dimensions
Height: 262 mm
Width: 211 mm
Thickness: 44 mm
Weight
1996 gr
ISBN-13
978-0-13-032351-4 (9780130323514)
Copyright in bibliographic data and cover images is held by Nielsen Book Services Limited or by the publishers or by their respective licensors: all rights reserved.
Schweitzer Classification
Other editions
New editions
Lawrence Revsine | Daniel W. Collins | W. Bruce Johnson
Financial Reporting and Analysis
Book
06/2004
3rd Edition
Pearson
€148.55
Article exhausted; check for reprint
Previous edition
Lawrence Revsine | Daniel W. Collins | W. Bruce Johnson
Financial Reporting and Analysis
Book
07/1998
Pearson
€47.03
Article exhausted; check for reprint
Persons
Lawrence Revsine. John and Norma Darling Distinguished Professor of Financial Accounting. Kellogg Graduatt School of Management, Northwestern University, BS 1963, MBA 1965, Ph.D. 19681 Northwestern University; CPA 1963
Lawrence Revsine joined the Kellogg faculty in 1971 and served as chair of the Accounting Information and Management Department for eight years.
The author of several books on various financial reporting issues, he has had approximately 50 articles published in leading academic journals.
His academic recognitions include participation in three American Accounting Association Doctoral Consortia. He has received both Ford Foundation and Peat Marwick Mitchell Foundation research grants. He was selected the American Accounting Association's; Distinguished Overseas Lecturer, and the AAA named him the 1992 Outstanding Educator.: The Illinois CPA Society designated Revsine its 1993 Outstanding Educator. Professors Revsine received the Alumni Choice Faculty Award from the 1995 Reunion Classes; this award is given to the Kellogg faculty member who has had the greatest impact on their professional and personal lives.
Professor Revsine has been a consultant to the American Institute of Certified Public: Accountants, the Securities and Exchange Commission, and the Financial Accounting; Standards Board and served on the Financial Accounting Standards Advisory Council.
He is a consultant to industry on external reporting issues and regulatory cases and has taught extensively in management development and continuing executive education programs in the United States and abroad. Professor Revsine has received numerous commendations for teaching excellence, including Teacher of the Year from the Kellogg Graduate Management Association student group, and the Sidney J. Levy Teaching Award, presented by the Kellogg Dean's Office.
Daniel W. Collins. Henry B. Tippie Research Chair in Accounting, Tippie College of Business, The University of Iowa. BBA 1968, Ph.D. 1973, The University of Iowa
Winner of the University of Iowa Board of Regents Award for Faculty Excellence in 2000 and the American Accounting Association's Outstanding Educator Award in 2001, Dan currently serves as the Chairman of the Accounting Department at The University G Professor Collins' research focuses on the role of accounting numbers in equity valuation and the pricing implications of alternative accounting measurements.
A prolific writer and frequent contributor to the top academic accounting journals, Collins has been recognized as one of the top ten most highly cited authors in the accounting literature over the last 20 years.
Professor Collins is on the editorial review boards of the Journal of Accounting and Economics, Accounting Horizons, and Review of Quantitative Finance and Accounting. He has also served as Associate Editor of The Accounting Review and as Director of Publications for the American Accounting Association (AAA). Professor Collins has served on numerous AAA committees including the Financial Accounting Standards Committee and has chaired the Publications Committee. He also served on the Financial Accounting Standards Advisory Council from 1994-1997.
W. Bruce Johnson. Arthur Andersen Professor of Accounting, Tippie College of Business, The University of Iowa. BS 1970, University of Oregon, MS 1973, Ph.D. 1975, The Ohio State University
W. Bruce Johnson joined the university of Iowa faculty in 1988 and has served as director of its McGladrey Institute for Accounting Research, accounting group chairman, and associate dean for graduate programs, where he was responsible for Iowa's MBA and Executive MBA programs.
Professor Johnson has previously held faculty appointments at the University of Wisconsin, Northwestern University, and the University of Chicago.
His teaching and research interests include corporate financial reporting, financial analysis, value-driven management systems and investment strategies, and executive compensation practices. He has received the Gilbert P. Maynard Award for Excellence in Accounting Instruction, and the Chester A. Phillips Outstanding Professor Award.
A well-respected author, Professor Johnson's articles have appeared in numerous scholarly publications and in academic and professional journals He has served on editorial boards of more than a dozen academic journals. Professor Johnson has also served as a research consultant to the Financial Accounting Standards Board, and on the Research Advisory, Professional Practice Quality and Outstanding Educator committees of the American Accounting Association. He is a member of the American Accounting Association, the Financial Executives Institute, and was formerly Senior Vice President for Equity Strategy at SCI Capital Management, a money management firm.
Lawrence Revsine joined the Kellogg faculty in 1971 and served as chair of the Accounting Information and Management Department for eight years.
The author of several books on various financial reporting issues, he has had approximately 50 articles published in leading academic journals.
His academic recognitions include participation in three American Accounting Association Doctoral Consortia. He has received both Ford Foundation and Peat Marwick Mitchell Foundation research grants. He was selected the American Accounting Association's; Distinguished Overseas Lecturer, and the AAA named him the 1992 Outstanding Educator.: The Illinois CPA Society designated Revsine its 1993 Outstanding Educator. Professors Revsine received the Alumni Choice Faculty Award from the 1995 Reunion Classes; this award is given to the Kellogg faculty member who has had the greatest impact on their professional and personal lives.
Professor Revsine has been a consultant to the American Institute of Certified Public: Accountants, the Securities and Exchange Commission, and the Financial Accounting; Standards Board and served on the Financial Accounting Standards Advisory Council.
He is a consultant to industry on external reporting issues and regulatory cases and has taught extensively in management development and continuing executive education programs in the United States and abroad. Professor Revsine has received numerous commendations for teaching excellence, including Teacher of the Year from the Kellogg Graduate Management Association student group, and the Sidney J. Levy Teaching Award, presented by the Kellogg Dean's Office.
Daniel W. Collins. Henry B. Tippie Research Chair in Accounting, Tippie College of Business, The University of Iowa. BBA 1968, Ph.D. 1973, The University of Iowa
Winner of the University of Iowa Board of Regents Award for Faculty Excellence in 2000 and the American Accounting Association's Outstanding Educator Award in 2001, Dan currently serves as the Chairman of the Accounting Department at The University G Professor Collins' research focuses on the role of accounting numbers in equity valuation and the pricing implications of alternative accounting measurements.
A prolific writer and frequent contributor to the top academic accounting journals, Collins has been recognized as one of the top ten most highly cited authors in the accounting literature over the last 20 years.
Professor Collins is on the editorial review boards of the Journal of Accounting and Economics, Accounting Horizons, and Review of Quantitative Finance and Accounting. He has also served as Associate Editor of The Accounting Review and as Director of Publications for the American Accounting Association (AAA). Professor Collins has served on numerous AAA committees including the Financial Accounting Standards Committee and has chaired the Publications Committee. He also served on the Financial Accounting Standards Advisory Council from 1994-1997.
W. Bruce Johnson. Arthur Andersen Professor of Accounting, Tippie College of Business, The University of Iowa. BS 1970, University of Oregon, MS 1973, Ph.D. 1975, The Ohio State University
W. Bruce Johnson joined the university of Iowa faculty in 1988 and has served as director of its McGladrey Institute for Accounting Research, accounting group chairman, and associate dean for graduate programs, where he was responsible for Iowa's MBA and Executive MBA programs.
Professor Johnson has previously held faculty appointments at the University of Wisconsin, Northwestern University, and the University of Chicago.
His teaching and research interests include corporate financial reporting, financial analysis, value-driven management systems and investment strategies, and executive compensation practices. He has received the Gilbert P. Maynard Award for Excellence in Accounting Instruction, and the Chester A. Phillips Outstanding Professor Award.
A well-respected author, Professor Johnson's articles have appeared in numerous scholarly publications and in academic and professional journals He has served on editorial boards of more than a dozen academic journals. Professor Johnson has also served as a research consultant to the Financial Accounting Standards Board, and on the Research Advisory, Professional Practice Quality and Outstanding Educator committees of the American Accounting Association. He is a member of the American Accounting Association, the Financial Executives Institute, and was formerly Senior Vice President for Equity Strategy at SCI Capital Management, a money management firm.
Content
1. The Economic and Institutional Setting for Financial Reporting.
Why Financial Statements Are Important. Economics of Accounting Information. A Closer Look at Professional Analysts. The Rules of the Financial Reporting Game. An International Perspective. Challenges Confronting the Analyst.
2. Accrual Accounting and Income Determination.
Example: Cash versus Accrual Income Measurement. Measuring Profit Performance: Revenues and Expenses. Income Statement Format and Classification. Comprehensive Income.
3. Additional Topics in Income Determination.
Revenue Recognition Prior to Sale. Revenue Recognition Subsequent to Sale. Earning Management.
4. Structure of the Balance Sheet and Statement of Cash Flows.
Classification Criteria and Measurement Conventions for Balance Sheet Accounts. Statement of Cash Flows.
5. Essentials of Financial Statement Analysis.
Basic Approaches. Quaker Oats Company-An illustration. Profitability, Competition, and Business Strategy. Return on Equity and Financial Leverage.
6. The Role of Financial Information in Valuation.
Corporate Valuation. Research on Earnings and Equity Valuation. Valuing a Business Opportunity (An Illustration). Cash Flow Analysis and Credit Risk.
7. The Role of Financial Information in Contracting.
Conflicts of Interest in Business Relationships. Lending Agreements and Debt Covenants. Management Compensation. Regulatory Agencies. Analytical Insights: Identifying "Managed" Earnings.
8. Receivables.
Assessing the Net Realizable Value of Accounts Receivable. Imputed Interest on Trade Notes Receivable. Accelerating Cash Collection: Selling Receivables and Collateralized Borrowings. Troubled Debt Restructuring.
9. Inventories.
An Overview of Inventory Accounting Issues. Determining Inventory Quantities. Items Included in Inventory. Costs Included in Inventory. Absorption Costing Versus Variable Costing. Cost Flow Assumptions: The Concepts. Inflation, LIFO Reserves, and the LIFO Effect on Income. LIFO Liquidation. Eliminating LIFO Ration Distortions. Tax Implications of LIFO. Eliminating Realized Holding Gains for FIFO Firms. Inventory Errors. Analytical Insights: LIFO Dangers. Empirical Evidence on Inventory Policy Choice.
10. Long-Lived Assets and Depreciation.
Measuring the Carrying Amount of Long-Lived Assets. Long-Lived Asset Measurement Rules Illustrated. Financial Analysis and Fixed Asset Reporting. Intangible Assets. A Case Study of Ambiguities in Capitalization Criteria: Oil and Gas Exploration Costs. Asset Impairment. Obligations Arising from Retiring Long-Lived Assets. Depreciation. International Perspective.
11. Financial Instruments as Liabilities.
Bonds Payable. Managerial Incentives and Financial Reporting for Debt. Incentives for Off-Balance Sheet Liabilities. Hedging. Loss Contingencies.
12. Financial Reporting for Leases.
Evolution of Lease Accounting. Lessee Accounting. Lessor Accounting. Additional Leasing Aspects.
13. Income Tax Reporting.
Understanding Income Tax Reporting. Using Footnote Disclosures to Improve Financial Analysis.
14. Pensions and Postretirement Benefits.
Financial Reporting for Pensions. Postretirment Benefits Other than Pensions. Are Pension and Other Postretirment Benefits (OPEB) Disclosures Useful? The Research Evidence.
15. Financial Reporting for Owners' Equity.
Appropriate Income Measurement. Compliance with Contract Terms. Legality of Corporate Distributions. Earnings per Share. Accounting for Stock-Based Compensation. Convertible Debt.
16. Intercorporate Equity Investments.
Minority Ownership. Majority Ownership. Foreign Subsidiaries.
17. Statement of Cash Flows.
Statement Format. Preparing the Cash Flow Statement. Reconciling Between Statements: Some Complexities. Analytical Insights: Cash Burn Rate of Internet Stocks.
18. Overview of International Financial Reporting Differences and Inflation.
An International Financial Reporting Map. Inflation Accounting.
Appendix I. Present Value Tables.
Appendix II. WWW/Electronic Resources for Financial Information..
Index.
Why Financial Statements Are Important. Economics of Accounting Information. A Closer Look at Professional Analysts. The Rules of the Financial Reporting Game. An International Perspective. Challenges Confronting the Analyst.
2. Accrual Accounting and Income Determination.
Example: Cash versus Accrual Income Measurement. Measuring Profit Performance: Revenues and Expenses. Income Statement Format and Classification. Comprehensive Income.
3. Additional Topics in Income Determination.
Revenue Recognition Prior to Sale. Revenue Recognition Subsequent to Sale. Earning Management.
4. Structure of the Balance Sheet and Statement of Cash Flows.
Classification Criteria and Measurement Conventions for Balance Sheet Accounts. Statement of Cash Flows.
5. Essentials of Financial Statement Analysis.
Basic Approaches. Quaker Oats Company-An illustration. Profitability, Competition, and Business Strategy. Return on Equity and Financial Leverage.
6. The Role of Financial Information in Valuation.
Corporate Valuation. Research on Earnings and Equity Valuation. Valuing a Business Opportunity (An Illustration). Cash Flow Analysis and Credit Risk.
7. The Role of Financial Information in Contracting.
Conflicts of Interest in Business Relationships. Lending Agreements and Debt Covenants. Management Compensation. Regulatory Agencies. Analytical Insights: Identifying "Managed" Earnings.
8. Receivables.
Assessing the Net Realizable Value of Accounts Receivable. Imputed Interest on Trade Notes Receivable. Accelerating Cash Collection: Selling Receivables and Collateralized Borrowings. Troubled Debt Restructuring.
9. Inventories.
An Overview of Inventory Accounting Issues. Determining Inventory Quantities. Items Included in Inventory. Costs Included in Inventory. Absorption Costing Versus Variable Costing. Cost Flow Assumptions: The Concepts. Inflation, LIFO Reserves, and the LIFO Effect on Income. LIFO Liquidation. Eliminating LIFO Ration Distortions. Tax Implications of LIFO. Eliminating Realized Holding Gains for FIFO Firms. Inventory Errors. Analytical Insights: LIFO Dangers. Empirical Evidence on Inventory Policy Choice.
10. Long-Lived Assets and Depreciation.
Measuring the Carrying Amount of Long-Lived Assets. Long-Lived Asset Measurement Rules Illustrated. Financial Analysis and Fixed Asset Reporting. Intangible Assets. A Case Study of Ambiguities in Capitalization Criteria: Oil and Gas Exploration Costs. Asset Impairment. Obligations Arising from Retiring Long-Lived Assets. Depreciation. International Perspective.
11. Financial Instruments as Liabilities.
Bonds Payable. Managerial Incentives and Financial Reporting for Debt. Incentives for Off-Balance Sheet Liabilities. Hedging. Loss Contingencies.
12. Financial Reporting for Leases.
Evolution of Lease Accounting. Lessee Accounting. Lessor Accounting. Additional Leasing Aspects.
13. Income Tax Reporting.
Understanding Income Tax Reporting. Using Footnote Disclosures to Improve Financial Analysis.
14. Pensions and Postretirement Benefits.
Financial Reporting for Pensions. Postretirment Benefits Other than Pensions. Are Pension and Other Postretirment Benefits (OPEB) Disclosures Useful? The Research Evidence.
15. Financial Reporting for Owners' Equity.
Appropriate Income Measurement. Compliance with Contract Terms. Legality of Corporate Distributions. Earnings per Share. Accounting for Stock-Based Compensation. Convertible Debt.
16. Intercorporate Equity Investments.
Minority Ownership. Majority Ownership. Foreign Subsidiaries.
17. Statement of Cash Flows.
Statement Format. Preparing the Cash Flow Statement. Reconciling Between Statements: Some Complexities. Analytical Insights: Cash Burn Rate of Internet Stocks.
18. Overview of International Financial Reporting Differences and Inflation.
An International Financial Reporting Map. Inflation Accounting.
Appendix I. Present Value Tables.
Appendix II. WWW/Electronic Resources for Financial Information..
Index.