Guide to Financial Reporting and Analysis

by Comiskey, Eugene E.; Mulford, Charles W.

• ISBN13: 9780471354253
• ISBN10: 0471354252
• Edition: 1st
• Format: Hardcover
• Copyright: 2000-07-20
• Publisher: Wiley

Summary

. . . and much more, to help working professionals gain clarity and begin making better-informed decisions today by taking advantage of the rich treatment offered in this timely, much-needed guide.

Author Biography

EUGENE E. COMISKEY is the Callaway Professor of Accounting and CHARLES W. MULFORD is Professor of Accounting in the DuPree College of Management at the Georgia Institute of Technology in Atlanta. Both have doctorates in accounting and are professionally qualified as Certified Public Accountants. They also actively consult with lenders at commercial banks in the United States and abroad. Professors Comiskey and Mulford have published articles on financial reporting and analysis issues in leading academic journals and in such widely read professional journals as Commercial Lending Review, Journal of Lending and Credit Risk Management, and Financial Analysts’ Journal. Comiskey and Mulford are also the coauthors of Financial Warnings.

Table of Contents

Preface	ix
Assessing Financial Quality: An Organizing Theme	1	(30)
A Historical Perspective	1	(8)
Assessing Financial Quality: An Organizing Theme	9	(12)
The Plan of This Book	21	(2)
Financial Quality Examples	23	(3)
Summary	26	(1)
Glossary	27	(1)
Notes	27	(4)
Analyzing Business Earnings I: The Income Statement	31	(44)
Nonrecurring Items and Investment Analysis: Research Results	33	(1)
Nonrecurring Items and Earnings Quality	34	(1)
Locating Nonrecurring Items	35	(1)
Nonrecurring Items in the Income Statement	35	(19)
Nonrecurring Items in the Statement of Cash Flows	54	(1)
Nonrecurring Items in the Inventory Disclosures of LIFO Firms	55	(3)
Nonrecurring Items in the Income Tax Note	58	(5)
Nonrecurring Items in the ``Other Income (Expense)'' Note	63	(2)
Nonrecurring Items in Management's Discussion and Analysis	65	(2)
Nonrecurring Items in Other Selected Notes	67	(4)
Summary	71	(1)
Glossary	72	(1)
Notes	73	(2)
Analyzing Business Earnings II: Calculating Sustainable Earnings Base	75	(38)
Sustainable Earnings Base Worksheet	75	(4)
Role of the Sustainable Earnings Base	79	(1)
Application of the Sustainable Earnings Base Worksheet: Baker Hughes, Inc.	79	(1)
Comments on the Baker Hughes Worksheet	80	(8)
Sustainable Earnings Base Analysis in Company Annual Reports	88	(15)
Income Taxes and Sustainable Earnings Base Analysis	103	(8)
Summary	111	(1)
Notes	112	(1)
Topics in Revenue Recognition and Matching	113	(64)
Foundations of Revenue Recognition and Matching	114	(8)
Contract Reporting and Analysis	122	(14)
Inventory Reporting and Analysis	136	(18)
Interest Capitalization	154	(12)
Summary	166	(2)
Glossary	168	(3)
Notes	171	(6)
Income Tax Reporting and Analysis	177	(62)
Some Key Foundations	177	(1)
Shareholder and Tax Return Profit Differences	178	(5)
Temporary Differences and Income Tax Reporting	183	(8)
Permanent Differences and Income Tax Reporting	191	(2)
Tax Reporting and Disclosure Requirements: A Complete Illustration	193	(8)
Tax Disclosures and Financial Analysis	201	(23)
Assessing the Realizability of Deferred Tax Assets	224	(4)
Some Relevant Research Findings	228	(1)
Summary	229	(2)
Glossary	231	(4)
Notes	235	(4)
Financial Derivatives	239	(45)
Understanding Financial Derivatives	240	(14)
Accounting Requirements for Financial Derivatives	254	(10)
Disclosure Requirements for Financial Derivatives	264	(8)
Analysis	272	(4)
Summary	276	(2)
Glossary	278	(3)
Notes	281	(3)
Foreign Exchange Reporting and Analysis	284	(51)
Key Foreign Currency Background and Terminology	285	(6)
Transaction Reporting and Analysis	291	(20)
Translation Reporting and Analysis	311	(13)
Summary	324	(4)
Glossary	328	(3)
Notes	331	(4)
Investment Reporting and Analysis I: Debt and Equity Securities	335	(43)
Investments in Debt and Equity Securities	336	(22)
Accounting for Investments under the Equity Method	358	(14)
Summary	372	(1)
Glossary	373	(2)
Notes	375	(3)
Investment Reporting and Analysis II: Business Combinations	378	(45)
The Structure of Business Combinations	379	(7)
Accounting for Businesss Combinations	386	(18)
Consolidated Financial Statements	404	(9)
Special Topics in Accounting for Business Combinations	413	(4)
Summary	417	(1)
Glossary	418	(2)
Notes	420	(3)
Lease Reporting and Analysis	423	(63)
Leasing Background	423	(2)
Financial Reporting by Lessees	425	(10)
Financial Analysis of Lessees	435	(17)
Financial Reporting by Lessors	452	(12)
Financial Analysis of Lessors	464	(5)
Sale and Leaseback Transactions	469	(8)
Summary	477	(2)
Glossary	479	(2)
Notes	481	(5)
Reporting and Analysis of Pensions and Other Postretirement Benefits	486	(59)
Pension Reporting and Analysis	487	(16)
Pension Plans and Financial Analysis	503	(23)
Reporting and Analysis of Other Postretirement Benefits (OPEB)	526	(7)
Summary	533	(2)
Glossary	535	(4)
Notes	539	(6)
Adjusted Balance Sheet Analysis	545	(26)
Accounting Standards, Off-Balance-Sheet Assets, Liabilities, and Valuation Differences	546	(10)
Comprehensive Revised-Balance-Sheet Analysis	556	(10)
Summary	566	(1)
Glossary	567	(1)
Notes	568	(3)
Identifying Sustainable Sources of Cash Flow	571	(34)
Importance of Cash Flow Information	572	(1)
What is Cash Flow?	573	(12)
Identifying Sustainable Sources of Cash Flow	585	(16)
Summary	601	(2)
Glossary	603	(2)
Notes	605