International Financial Statement Analysis provides the most up-to-date detail for the successful assessment of company performance and financial position regardless of country of origin. The seasoned experts at the CFA Institute offer readers a rich, clear reference, covering all aspects from financial reporting mechanics and standards to understanding income and balance sheets. Comprehensive guidance toward effective analysis techniques helps readers make real-world use of the knowledge presented, with this new third edition containing the most current standards and methods for the post-crisis world. Special Features ·Understand the accounting mechanics behind financial reporting ·Discover the differences between statements from around the world ·Learn how each financial statement element affects securities valuation ·Master analysis for clues into operations and risk characteristics Table of Content Preface Acknowledgments About the CFA Investment Series Chapter 1 Financial Statement Analysis: An Introduction 1. Introduction 2. Scope of Financial Statement Analysis 3. Major Financial Statements and Other Information Sources 4. Financial Statement Analysis Framework 5. Summary Chapter 2 Financial Reporting Mechanics 1. Introduction 2. The Classification of Business Activities 3. Accounts and Financial Statements 4. The Accounting Process 5. Accruals and Valuation Adjustments 6. Accounting Systems 7. Using Financial Statements in Security Analysis 8. Summary Chapter 3 Financial Reporting Standards 1. Introduction 2. The Objective of Financial Reporting 3. Standard-Setting Bodies and Regulatory Authorities 4. Convergence of Global Financial Reporting Standards 5. The International Financial Reporting Standards Framework 6. Effective Financial Reporting 7. Comparison of IFRS with Alternative Reporting Systems 8. Monitoring Developments in Financial Reporting Standards 9. Summary Chapter 4 Understanding Income Statements 1. Introduction 2. Components and Format of the Income Statement 3. Revenue Recognition 4. Expense Recognition 5. Non-Recurring Items and Non-Operating Items 6. Earnings per Share 7. Analysis of the Income Statement 8. Comprehensive Income 9. Summary Chapter 5 Understanding Balance Sheets 1. Introduction 2. Components and Format of the Balance Sheet 3. Current Assets and Current Liabilities 4. Non-Current Assets 5. Non-Current Liabilities 6. Equity 7. Analysis of the Balance Sheet 8. Summary Chapter 6 Understanding Cash Flow Statements 1. Introduction 2. Components and Format of the Cash Flow Statement 3. The Cash Flow Statement: Linkages and Preparation 4. Cash Flow Statement Analysis 5. Summary Chapter 7 Financial Analysis Techniques 1. Introduction 2. The Financial Analysis Process 3. Analytical Tools and Techniques 4. Common Ratios Used in Financial Analysis 5. Equity Analysis 6. Credit Analysis 7. Business and Geographic Segments 8. Model Building and Forecasting 9. Summary Chapter 8 Inventories 1. Introduction 2. Cost of Inventories 3. Inventory Valuation Methods 4. The LIFO Method 5. Inventory Method Changes 6. Inventory Adjustments 7. Evaluation of Inventory Management 8. Summary Chapter 9 Long-Lived Assets 1. Introduction 2. Acquisition of Long-Lived Assets 3. Depreciation and Amortization of Long-Lived Assets 4. The Revaluation Model 5. Impairment of Assets 6. Derecognition 7. Presentation and Disclosures 8. Investment Property 9. Leasing 10. Summary Chapter 10 Non-Current (Long-Term) Liabilities 1. Introduction 2. Bonds Payable 3. Leases 4. Introduction to Pensions and Other Post-Employment Benefits 5. Evaluating Solvency: Leverage and Coverage Ratios 6. Summary Chapter 11 Financial Reporting Quality 1. Introduction 2. Conceptual Overview 3. Context for Assessing Financial Reporting Quality 4. Detection of Financial Reporting Quality Issues 5. Summary Chapter 12 Financial Statement Anal