Business analysis valuation : using financial statements

Part I - Framework
1: A Framework for Business Analysis and Valuation Using Financial Statements

Part II - Business Analysis and Valuation Tools
2: Strategy Analysis
3: Overview of Accounting Analysis
4: Implementing Accounting Analysis
5: Financial Analysis
6: Prospective Analysis - Forecasting
7: Prospective Analysis - Valuation Theory and Concepts
8: Prospective Analysis - Valuation Implementation

Part III - Business Analysis And Valuation Applications
9: Equity Security Analysis
10: Credit Analysis and Distress Prediction
11: Mergers and Acquisitions
12: Communication and Governance

Focus on Valuation. Students primarily learn to value companies by using current book values and forecasts of earnings.
Flexible Focus for Maximum Student Impact. The textbook is designed to provide a framework for students interested in a wide range of business careers, including financial analysts, investment bankers, consultants and corporate managers.
Coverage of 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.
Decision Context - Each case presents business analysis and valuation issues in specific decision contexts, which makes the material more interesting and exciting.
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.
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.
Expense Recognition and Allocation - Coverage of depreciation, amortization, asset cost allocation and asset devaluation as they affect the financial statements.
Chapters on accounting analysis - Accounting analysis is presented from an income statement and balance sheet perspective and includes a chapter on accounting adjustments.