International Financial Statement Analysis Workbook (CFA Institute Investment Series)

by Robinson, Thomas R.; Henry, Elaine; Pirie, Wendy L.; Broihahn, Michael A.; Cope, Anthony T.

• ISBN13: 9780470916636
• ISBN10: 047091663X
• Edition: 2nd
• Format: Paperback
• Copyright: 2012-05-01
• Publisher: Wiley

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 Introduction	p. 3
Learning Outcomes	p. 3
Summary Overview	p. 3
Problems	p. 5
Financial Reporting Mechanics	p. 7
Learning Outcomes	p. 7
Summary Overview	p. 7
Problems	p. 8
Financial Reporting Standards	p. 11
Learning Outcomes	p. 11
Summary Overview	p. 11
Problems	p. 13
Understanding Income Statements	p. 17
Learning Outcomes	p. 17
Summary Overview	p. 18
Problems	p. 19
Understanding Balance Sheets	p. 23
Learning Outcomes	p. 23
Summary Overview	p. 23
Problems	p. 25
Understanding Cash Flow Statements	p. 29
Learning Outcomes	p. 29
Summary Overview	p. 29
Problems	p. 30
Financial Analysis Techniques	p. 35
Learning Outcomes	p. 35
Summary Overview	p. 35
Problems	p. 36
Financial Statement Analysis: Applications	p. 43
Learning Outcomes	p. 43
Summary Overview	p. 43
Problems	p. 44
Inventories	p. 47
Learning Outcomes	p. 47
Summary Overview	p. 47
Problems	p. 49
Long-Lived Assets	p. 65
Learning Outcomes	p. 65
Summary Overview	p. 66
Problems	p. 68
Income Taxes	p. 79
Learning Outcomes	p. 79
Summary Overview	p. 79
Problems	p. 80
Noncurrent (Long-Term) Liabilities	p. 85
Learning Outcomes	p. 85
Summary Overview	p. 85
Problems	p. 87
Employee Compensation: Postemployment and Share-Based	p. 91
Learning Outcomes	p. 91
Summary Overview	p. 91
Problems	p. 93
Intercorporate Investments	p. 103
Learning Outcomes	p. 103
Summary Overview	p. 103
Problems	p. 104
Multinational Operations	p. 115
Learning Outcomes	p. 115
Summary Overview	p. 115
Problems	p. 117
Evaluating Financial Reporting Quality	p. 125
Learning Outcomes	p. 125
Summary Overview	p. 125
Problems	p. 126
Integration of Financial Statement Analysis Techniques	p. 131
Learning Outcomes	p. 131
Summary Overview	p. 131
Problems	p. 132
Solutions
Financial Statement Analysis: An Introduction	p. 141
Solutions	p. 141
Financial Reporting Mechanics	p. 143
Solutions	p. 143
Financial Reporting Standards	p. 145
Solutions	p. 145
Understanding Income Statements	p. 147
Solutions	p. 147
Understanding Balance Sheets	p. 149
Solutions	p. 149
Understanding Cash Flow Statements	p. 151
Solutions	p. 151
Financial Analysis Techniques	p. 155
Solutions	p. 155
Financial Statement Analysis: Applications	p. 159
Solutions	p. 159
Inventories	p. 161
Solutions	p. 161
Long-Lived Assets	p. 167
Solutions	p. 167
Income Taxes	p. 173
Solutions	p. 173
Noncurrent (Long-Term) Liabilities	p. 175
Solutions	p. 175
Employee Compensation: Postemployment and Share-Based	p. 177
Solutions	p. 177
Intercorporate Investments	p. 181
Solutions	p. 181
Multinational Operations	p. 185
Solutions	p. 185
Evaluating Financial Reporting Quality	p. 189
Solutions	p. 189
Integration of Financial Statement Analysis Techniques	p. 191
Solutions	p. 191
About the CFA Program	p. 195
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