Financial Reporting, Financial Statement Analysis, and Valuation

Stickney/Brown/Wahlen is a balanced, flexible, and complete Financial Statement Analysis book that is written with the premise that students learn financial statement analysis most effectively by performing the analysis on actual companies. Students learn to integrate the concepts from economics, business strategy, accounting, and other business disciplines through the integration of a unique six-step process.

Benefits:

• NEW! Flexible new organization with new Chapter 11, "Valuation: Discount Rates and Dividends-Based Approaches," for greater teaching and learning efficiency. This new chapter increases instructors' flexibility. Material in new chapter 11 (cost of capital and dividends-based valuations) are topics often covered in finance courses. When students have had this material before taking FSA, the instructor can skip this chapter and go right to Chapter 12.
• NEW! New end-of-chapter assignments help instructors achieve their course goals. New, verified Questions and short Exercises in each chapter allow instructors to vary the length and complexity of their assignments as never before.
• NEW! Continued Emphasis on Valuation of the Firm: Financial statement analysis for purposes of investing in ownership of the firm is an important focus of this edition.
• NEW! Authoritative Coverage of Current Reporting Problems: The authors provide critical perspectives on recent reporting issues and problems, including Enron, WorldCom, and other financial reporting scandals.
• Six-Step Process: A six-step process covers all of the economic, strategic, accounting, profitability, and risk analysis, and valuation issues required to analyze the financial statements of and value a public company.
• Strong emphasis on accounting and on cleansing the reported data prior to analysis and valuation: Emphasis is on quality of earnings and sustainability, quality of financial position, and accounting principles as a solid basis for analysis and valuation.
• Actual Companies Used Throughout: Numerous examples in the text--approximately 10 per chapter--are based on the financial information of actual public companies. Examples, problems, and cases using companies such as PepsiCo, Sun Microsystems, Nokia, Wal-Mart, Microsoft, and Ericsson are of high interest to students.
• Incorporates Current Research: Recent academic research is incorporated throughout the text and footnotes guide students to other materials on the subject.
• Thomson ONE. For supplementary financial research beyond the problems and cases in the book, online access to Thomson ONE-Business School Edition, an educational version of the same financial data provided by Thomson Financial that experts use on a daily basis, is provided for 500 companies. Access card is bundled with every new copy of the textbook.
• In its balanced approach, Stickney focuses on using financial accounting to cleanse the reported data prior to analysis and valuation. Also emphasized in this edition is how choices of alternative GAAP rules affect a firm's transactions.
• NEW! Updated throughout for the latest financial accounting pronouncements and reporting requirements such as the Sarbanes-Oxley, FASB and IASB Pronouncements. Chapter 1 summarizes the key Sarbanes-Oxley provisions that apply to financial statement analysis, and chapters 6 to 9 incorporate relevant new FASB and IASB pronouncements.
• NEW! New coverage of key topics affecting financial statement analysis. Chapter 4 contains new coverage of non-GAAP earnings measures, and Chapter 5 adds more on financial measures of risk.
• NEW! Fully updated problems and cases material. The authors provide 20-30% new or revised problems and cases that reflect the need for thoughtful, up-to-date, fully verified assignment material.
• NEW! New Integrative Case using Starbuck's. This running case fulfills the needs of many instructors who want to use this approach to matching case assignments with chapter content.
• NEW! Integration of Business and Company Resource Center into end-of-chapter problem material. This tool provides instructors with yet another tool for current, topical financial research assignments.
• NEW! New Appendix in Ch 1 leads students through the various resources and techniques for doing a term project. This appendix introduces students to the various resources and techniques for doing a term project, including downloading financial data into Excel spreadsheets for analysis and using FSAP spreadsheets.
• NEW! New integration of FSAP data sets. FSAP, the authors' spreadsheet analysis tool that accompanies the textbook, now includes more integrated rather than downloadable data sets for easier use.