International Financial Statement Analysis Workbook (CFA Institute Investment Series)

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Edition: 2nd
Format: Paperback
Pub. Date: 2012-05-01
Publisher(s): Wiley
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Summary

In a global, highly interconnected investment landscape, financial analysts must have thorough, working knowledge of international financial statement analysis. This companion Workbook to International Financial Statement Analysis, 2nd Edition helps busy professionals understand and apply the concepts and methodologies essential to accurate financial analysis. Readers can test their knowledge and understanding of the tools and techniques associated with this discipline before putting them to use in real world situations. This informative study guide contains carefully constructed problems with detailed solutions, as well as concise learning outcome statement and summary chapter overviews that include: the differences and similarities in income statements, balance sheets, and cash flow statements around the world; the impact of foreign exchange rates on the financial statements of a multinational corporation; the difficulty in measuring the value of employee compensation; the importance of income tax accounting and reporting; and much more. To acquire a practical mastery of international financial statement analysis, this accompanying workbook provides the tests needed to succeed.

Author Biography

Thomas R. Robinson, CFA, is Managing Director of the Education Division of CFA Institute where he leads and develops the teams responsible for producing and delivering educational content and examinations to candidates, members, and other investment professionals encompassing the CFA Program, CIPM Program, Lifelong Learning, Private Wealth, Publications, and Conferences.

Elaine Henry, CFA, is an Assistant Professor of Accounting at the University of Miami where she teaches courses in accounting, financial statement analysis, and valuation. After working in corporate finance at Lehman Brothers, strategy consulting at McKinsey & Company, and corporate banking at Citibank, she obtained a PhD from Rutgers University where she majored in accounting and minored in finance.

Wendy L. Pirie, CFA, is Director, Curriculum Projects, in the Education Division of CFA Institute. Prior to joining CFA Institute in 2008, she taught finance, accounting, statistics, taxation, business law, and marketing for over twenty years at both large and small public and private universities, religious colleges, and military academies. Her work has been published in the Journal of Financial Research and the Journal of Economics and Finance. She holds a PhD from Queen's University in Kingston, Ontario, and MBAs from the University of Toronto and the University of Calgary. Pirie is also coauthor of Investments: Principles of Portfolio and Equity Analysis (Wiley).

Michael A. Broihahn, CFA, is an Associate Professor of Accounting and the Director of Graduate Programs at Barry University in Miami, Florida. His teaching and research interests encompass financial accounting, auditing, and professional ethics. He currently serves CFA Institute in a number of different capacities.

Table of Contents

Learning Outcomes, Summary Overview, and Problems
Financial Statement Analysis: An Introductionp. 3
Learning Outcomesp. 3
Summary Overviewp. 3
Problemsp. 5
Financial Reporting Mechanicsp. 7
Learning Outcomesp. 7
Summary Overviewp. 7
Problemsp. 8
Financial Reporting Standardsp. 11
Learning Outcomesp. 11
Summary Overviewp. 11
Problemsp. 13
Understanding Income Statementsp. 17
Learning Outcomesp. 17
Summary Overviewp. 18
Problemsp. 19
Understanding Balance Sheetsp. 23
Learning Outcomesp. 23
Summary Overviewp. 23
Problemsp. 25
Understanding Cash Flow Statementsp. 29
Learning Outcomesp. 29
Summary Overviewp. 29
Problemsp. 30
Financial Analysis Techniquesp. 35
Learning Outcomesp. 35
Summary Overviewp. 35
Problemsp. 36
Financial Statement Analysis: Applicationsp. 43
Learning Outcomesp. 43
Summary Overviewp. 43
Problemsp. 44
Inventoriesp. 47
Learning Outcomesp. 47
Summary Overviewp. 47
Problemsp. 49
Long-Lived Assetsp. 65
Learning Outcomesp. 65
Summary Overviewp. 66
Problemsp. 68
Income Taxesp. 79
Learning Outcomesp. 79
Summary Overviewp. 79
Problemsp. 80
Noncurrent (Long-Term) Liabilitiesp. 85
Learning Outcomesp. 85
Summary Overviewp. 85
Problemsp. 87
Employee Compensation: Postemployment and Share-Basedp. 91
Learning Outcomesp. 91
Summary Overviewp. 91
Problemsp. 93
Intercorporate Investmentsp. 103
Learning Outcomesp. 103
Summary Overviewp. 103
Problemsp. 104
Multinational Operationsp. 115
Learning Outcomesp. 115
Summary Overviewp. 115
Problemsp. 117
Evaluating Financial Reporting Qualityp. 125
Learning Outcomesp. 125
Summary Overviewp. 125
Problemsp. 126
Integration of Financial Statement Analysis Techniquesp. 131
Learning Outcomesp. 131
Summary Overviewp. 131
Problemsp. 132
Solutions
Financial Statement Analysis: An Introductionp. 141
Solutionsp. 141
Financial Reporting Mechanicsp. 143
Solutionsp. 143
Financial Reporting Standardsp. 145
Solutionsp. 145
Understanding Income Statementsp. 147
Solutionsp. 147
Understanding Balance Sheetsp. 149
Solutionsp. 149
Understanding Cash Flow Statementsp. 151
Solutionsp. 151
Financial Analysis Techniquesp. 155
Solutionsp. 155
Financial Statement Analysis: Applicationsp. 159
Solutionsp. 159
Inventoriesp. 161
Solutionsp. 161
Long-Lived Assetsp. 167
Solutionsp. 167
Income Taxesp. 173
Solutionsp. 173
Noncurrent (Long-Term) Liabilitiesp. 175
Solutionsp. 175
Employee Compensation: Postemployment and Share-Basedp. 177
Solutionsp. 177
Intercorporate Investmentsp. 181
Solutionsp. 181
Multinational Operationsp. 185
Solutionsp. 185
Evaluating Financial Reporting Qualityp. 189
Solutionsp. 189
Integration of Financial Statement Analysis Techniquesp. 191
Solutionsp. 191
About the CFA Programp. 195
Table of Contents provided by Publisher. All Rights Reserved.

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