Financial statements are the basis for a wide range of business analysis. Managers, securities analysts, bankers and consultants all use them to make business decisions. There is strong demand among business students for course materials that provide a framework for using financial statement data in a variety of business analysis and valuation contexts.
- NEW! Revenue Recognition: Coverage detailing the challenges in revenue recognition such as how to account for payment in advance, multi-period contracts, and bundled services or products is included. Discussion of the credit-worthiness of customers and dissatisfaction about service performance is also included.
- NEW! Harvard Business School B.A.V. Software. Included FREE with each new copy of the text, this software helps guide learners through the steps of analysis and valuation. Financial statements for any company are imported into the tool, standard ratios are presented and learners are asked to make forecasts of key inputs that are used to provide a valuation.
- NEW! New and updated cases. Several older cases have been replaced with newer cases, and other cases have been updated.
- NEW! Revised chapters on accounting analysis. Accounting analysis is presented from an income statement and balance sheet perspective, and a new chapter on accounting adjustments has been added.
- Thomson Analytics -- Business School Edition is a web-based portal product that provides integrated access to Thomson Financial content for the purpose of financial analysis. This new web-based application delivers the most powerful and flexible tools available for turning critical market data into actionable intelligence for educational purposes! Thomson Analytics -- Business School Edition is an educational version of the same financial resources used by Wall Street analysts on a daily basis!
- NEW! Expense Recognition and Allocation: Coverage of depreciation, amortization, asset cost allocation and asset devaluation as they affect the financial statements.
- Cases: Cases are supported by textual material that explains the techniques to be used, the theory and evidence behind them, and the detailed institutional context in which the practical applications are conducted to assure that students develop strong practical skills using real world applications.
- Entity Issues: Explanation of how to measure a multi-business unit firm's value is given in detail.
- End of Chapter Material: Quality 'Discussion Questions' (about 10 per chapter) give students the opportunity to apply the concepts learned in the text without having to assign one of the many cases.
- Teaching Manual: For students who need more help working a case, the Teaching Manual includes a set of detailed questions that can be handed out before class. For students requiring less structure, there are recommended questions at the end of each case.
- Decision Context: Each case presents business analysis and valuation issues in specific decision contexts, which makes the material more interesting and exciting for students.
- Four Types of Financial Statement Analysis: (1) Business strategy analysis for developing an understanding of a firm's competitive strategy (2) Accounting analysis for representing the firm's business economics and strategy in its financial statements, and for developing adjusted accounting measures of performance, (3) Financial analysis for ratio analysis and cash flow measures of operating, and (4) Prospective analysis.
- Applications of financial statement analysis include (1) Credit analysis (2) Securities analysis (3) Analysis of mergers, acquisitions, and other corporate restructuring (4) Analysis of financing policies: capital structure and dividend policy (5) Analysis of management communication strategies. Where applicable, relevant institutional details and results of academic research are also incorporated.