International Financial Statement Analysis - Workbook

PART I Learning Outcomes, Summary Overview, and Problems

CHAPTER 1 Financial Statement Analysis: An Introduction 3
Learning Outcomes 3
Summary Overview 3
Problems 5

CHAPTER 2 Financial Reporting Mechanics 7
Learning Outcomes 7
Summary Overview 7
Problems 8

CHAPTER 3 Financial Reporting Standards 11
Learning Outcomes 11
Summary Overview 11
Problems 13

CHAPTER 4 Understanding Income Statements 17
Learning Outcomes 17
Summary Overview 18
Problems 19

CHAPTER 5 Understanding Balance Sheets 23
Learning Outcomes 23
Summary Overview 23
Problems 25

CHAPTER 6 Understanding Cash Flow Statements 29
Learning Outcomes 29
Summary Overview 29
Problems 30

CHAPTER 7 Financial Analysis Techniques 35
Learning Outcomes 35
Summary Overview 35
Problems 36

CHAPTER 8 Financial Statement Analysis: Applications 43
Learning Outcomes 43
Summary Overview 43
Problems 44

CHAPTER 9 Inventories 47
Learning Outcomes 47
Summary Overview 47
Problems 49

CHAPTER 10 Long-Lived Assets 65
Learning Outcomes 65
Summary Overview 66
Problems 68

CHAPTER 11 Income Taxes 79
Learning Outcomes 79
Summary Overview 79
Problems 80

CHAPTER 12 Noncurrent (Long-Term) Liabilities 85
Learning Outcomes 85
Summary Overview 85
Problems 87

CHAPTER 13 Employee Compensation: Postemployment and Share-Based 91
Learning Outcomes 91
Summary Overview 91
Problems 93

CHAPTER 14 Intercorporate Investments 103
Learning Outcomes 103
Summary Overview 103
Problems 104

CHAPTER 15 Multinational Operations 115
Learning Outcomes 115
Summary Overview 115
Problems 117

CHAPTER 16 Evaluating Financial Reporting Quality 125
Learning Outcomes 125
Summary Overview 125
Problems 126

CHAPTER 17 Integration of Financial Statement Analysis Techniques 131
Learning Outcomes 131
Summary Overview 131
Problems 132

PART II Solutions

CHAPTER 1 Financial Statement Analysis: An Introduction 141
Solutions 141

CHAPTER 2 Financial Reporting Mechanics

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.