Book Description:
Financial statements are the basis for a wide range of business analyses. Managers use them to monitor and judge their firms’ performance relative to competitors, to communicate with external investors, to help judge what financial policies they should pursue, and to evaluate potential new businesses to acquire as part of their investment strategy. Securities analysts use financial statements to rate and value companies they recommend to clients. Bankers use them in deciding whether to extend a loan to a client and to determine the loan’s terms. Investment bankers use them as a basis for valuing and analyzing prospective buyouts, mergers, and acquisitions. And consultants use them as a basis for competitive analysis for their clients. Not surprisingly, therefore, there is a strong demand among business students for a course that provides a framework for using financial statement data in a variety of business analysis and valuation contexts. The purpose of this book is to provide such a framework for business students and practitioners. This IFRS edition is the European adaptation of the authoritative US edition – authored by Krishna G. Palepu and Paul M. Healy – that has been used in Accounting and Finance departments in universities around the world. In 2007 we decided to write the first IFRS edition because of the European business environment’s unique character and the introduction of mandatory IFRS reporting for public corporations in the European Union. This third IFRS edition is a thorough update of the successful second edition, incorporating new examples, cases, problems and exercises, and regulatory updates.
Financial statements are the basis for a wide range of business analyses. Managers use them to monitor and judge their firms’ performance relative to competitors, to communicate with external investors, to help judge what financial policies they should pursue, and to evaluate potential new businesses to acquire as part of their investment strategy. Securities analysts use financial statements to rate and value companies they recommend to clients. Bankers use them in deciding whether to extend a loan to a client and to determine the loan’s terms. Investment bankers use them as a basis for valuing and analyzing prospective buyouts, mergers, and acquisitions. And consultants use them as a basis for competitive analysis for their clients. Not surprisingly, therefore, there is a strong demand among business students for a course that provides a framework for using financial statement data in a variety of business analysis and valuation contexts. The purpose of this book is to provide such a framework for business students and practitioners. This IFRS edition is the European adaptation of the authoritative US edition – authored by Krishna G. Palepu and Paul M. Healy – that has been used in Accounting and Finance departments in universities around the world. In 2007 we decided to write the first IFRS edition because of the European business environment’s unique character and the introduction of mandatory IFRS reporting for public corporations in the European Union. This third IFRS edition is a thorough update of the successful second edition, incorporating new examples, cases, problems and exercises, and regulatory updates.
Table of Contents: | |
Chapter 1 | A Framework For Business Analysis And Valuation Using Financial Statements. |
Chapter 2 | Strategy Analysis. |
Chapter 3 | Adjusting the Accounts. |
Chapter 4 | Accounting Analysis: Accounting Adjustments |
Chapter 5 | Financial Analysis. |
Chapter 6 | Prospective Analysis: Forecasting. |
Chapter 7 | Prospective Analysis: Valuation Theory and Concepts. |
Chapter 8 | Prospective Analysis: Valuation Implementation. |
Chapter 9 | Equity Security Analysis. |
Chapter 10 | Credit Analysis and Distress Prediction. |
Chapter 11 | Mergers and Acquisitions. |
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