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Foreword | |
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Preface | |
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Acknowledgments | |
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Introduction | |
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Financial Statement Analysis: An Introduction | |
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Learning Outcomes | |
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Introduction | |
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Scope of Financial Statement Analysis | |
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Major Financial Statements and Other Information Sources | |
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Financial Statement Analysis Framework | |
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Summary | |
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Problems | |
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Financial Reporting Mechanics | |
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Learning Outcomes | |
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Introduction | |
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The Classification of Business Activities | |
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Accounts and Financial Statements | |
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The Accounting Process | |
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Accruals and Valuation Adjustments | |
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Accounting Systems | |
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Using Financial Statements in Security Analysis | |
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Summary | |
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A Debit/Credit Accounting System | |
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Problems | |
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Financial Reporting Standards | |
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Learning Outcomes | |
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Introduction | |
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The Objective of Financial Reporting | |
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Standard-Setting Bodies and Regulatory Authorities | |
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Convergence of Global Financial Reporting Standards | |
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The International Financial Reporting Standards Framework | |
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Effective Financial Reporting | |
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Comparison of IFRS with Alternative Reporting Systems | |
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Monitoring Developments in Financial Reporting Standards | |
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Summary | |
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Problems | |
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Understanding Income Statements | |
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Learning Outcomes | |
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Introduction | |
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Components and Format of the Income Statement | |
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Revenue Recognition | |
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Expense Recognition | |
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Non-Recurring Items and Non-Operating Items | |
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Earnings per Share | |
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Analysis of the Income Statement | |
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Comprehensive Income | |
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Summary | |
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Problems | |
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Understanding Balance Sheets | |
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Learning Outcomes | |
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Introduction | |
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Components and Format of the Balance Sheet | |
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Current Assets and Current Liabilities | |
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Non-Current Assets | |
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Non-Current Liabilities | |
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Equity | |
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Analysis of the Balance Sheet | |
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Summary | |
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Problems | |
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Understanding Cash Flow Statements | |
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Learning Outcomes | |
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Introduction | |
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Components and Format of the Cash Flow Statement | |
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The Cash Flow Statement: Linkages and Preparation | |
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Cash Flow Statement Analysis | |
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Summary | |
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References | |
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Problems | |
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Financial Analysis Techniques | |
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Learning Outcomes | |
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Introduction | |
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The Financial Analysis Process | |
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Analytical Tools and Techniques | |
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Common Ratios Used in Financial Analysis | |
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Equity Analysis | |
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Credit Analysis | |
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Business and Geographic Segments | |
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Model Building and Forecasting | |
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Summary | |
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References | |
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Problems | |
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Financial Statement Analysis: Applications | |
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Learning Outcomes | |
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Introduction | |
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Application: Evaluating Past Financial Performance | |
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Application: Projecting Future Financial Performance | |
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Application: Assessing Credit Risk | |
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Application: Screening for Potential Equity Investments | |
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Analyst Adjustments to Reported Financials | |
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Summary | |
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References | |
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Problems | |
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Inventories | |
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Learning Outcomes | |
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Introduction | |
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Cost of Inventories | |
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Inventory Valuation Methods | |
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The LIFO Method | |
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Inventory Method Changes | |
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Inventory Adjustments | |
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Evaluation of Inventory Management | |
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Summary | |
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Problems | |
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Long-Lived Assets | |
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Learning Outcomes | |
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Introduction | |
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Acquisition of Long-Lived Assets | |
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Depreciation and Amortisation of Long-Lived Assets | |
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The Revaluation Model | |
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Impairment of Assets | |
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Derecognition | |
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Presentation and Disclosures | |
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Investment Property | |
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Leasing | |
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Summary | |
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Problems | |
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Income Taxes | |
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Learning Outcomes | |
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Introduction | |
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Differences between Accounting Profit and Taxable Income | |
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Determining the Tax Base of Assets and Liabilities | |
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Temporary and Permanent Differences between Taxable and Accounting Profit | |
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Unused Tax Losses and Tax Credits | |
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Recognition and Measurement of Current and Deferred Tax | |
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Presentation and Disclosure | |
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Comparison of IFRS and U.S. GAAP | |
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Summary | |
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Problems | |
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Non-Current (Long-Term) Liabilities | |
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Learning Outcomes | |
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Introduction | |
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Bonds Payable | |
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Leases | |
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Introduction to Pensions and Other Post-Employment Benefits | |
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Evaluating Solvency: Leverage and Coverage Ratios | |
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Summary | |
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Problems | |
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Employee Compensation: Post-Employment and Share-Based | |
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Learning Outcomes | |
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Introduction | |
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Pensions and Other Post-Employment Benefits | |
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Share-Based Compensation | |
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Summary | |
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References | |
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Problems | |
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Intercorporate Investments | |
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Learning Outcomes | |
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Introduction | |
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Basic Corporate Investment Categories | |
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Investments in Financial Assets | |
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Investments in Associates | |
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Joint Ventures | |
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Business Combinations | |
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Variable Interest and Special Purpose Entities | |
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Summary | |
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Problems | |
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Multinational Operations | |
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Learning Outcomes | |
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Introduction | |
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Foreign Currency Transactions | |
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Translation of Foreign Currency Financial Statements | |
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Summary | |
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Problems | |
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Evaluating Financial Reporting Quality | |
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Learning Outcomes | |
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Introduction | |
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Discretion in Accounting Systems | |
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Financial Reporting Quality: Definitions, Issues, and Aggregate Measures | |
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A Framework for Identifying Low-Quality Financial Reporting | |
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The Implications of Fair Value Reporting for Financial Reporting Quality: A Brief Discussion | |
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Summary | |
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Problems | |
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Integration of Financial Statement Analysis Techniques | |
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Learning Outcomes | |
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Introduction | |
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Case Study 1: Long-term equity investment | |
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Case Study 2: Off-Balance Sheet Leverage From Operating Leases | |
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Case Study 3: Anticipating Effects Of Changes in Accounting Standards | |
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Conclusion | |
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Problems | |
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Glossary | |
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References | |
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About the Authors | |
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About the CFA Program | |
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Index | |