International Financial Statement Analysis Workbook

210 Pages·2015·1.69 MB·English

by  Thomas R. Robinson

INTERNATIONAL
FINANCIAL
STATEMENT
ANALYSIS
WORKBOOK
CFA Institute is the premier association for investment professionals around the world, with
over 124,000 members in 145 countries. Since 1963 the organization has developed and ad-
ministered the renowned Chartered Financial Analyst® Program. With a rich history of leading
the investment profession, CFA Institute has set the highest standards in ethics, education, and
professional excellence within the global investment community and is the foremost authority
on investment profession conduct and practice.
Each book in the CFA Institute Investment Series is geared toward industry practition-
ers along with graduate-level fi nance students and covers the most important topics in the
industry. Th e authors of these cutting-edge books are themselves industry professionals and
academics and bring their wealth of knowledge and expertise to this series.
INTERNATIONAL
FINANCIAL
STATEMENT
ANALYSIS
WORKBOOK
Th ird Edition
Th omas R. Robinson, CFA
Elaine Henry, CFA
Wendy L. Pirie, CFA
Michael A. Broihahn, CFA
Cover image: © iStock.com / BreatheFitness
Cover design: Wiley
Copyright © 2015 by CFA Institute. All rights reserved.
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
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ISBN 978-1-118-99948-6 (Hardcover)
ISBN 978-1-119-02971-7 (ePDF)
ISBN 978-1-119-02972-4 (ePub)
Printed in the United States of America.
10 9 8 7 6 5 4 3 2 1
CONTENTS
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 13
Learning Outcomes 13
Summary Overview 14
Problems 15
CHAPTER 4
Understanding Income Statements 19
Learning Outcomes 19
Summary Overview 20
Problems 21
CHAPTER 5
Understanding Balance Sheets 25
Learning Outcomes 25
Summary Overview 25
Problems 27
v
vi Contents
CHAPTER 6
Understanding Cash Flow Statements 31
Learning Outcomes 31
Summary Overview 31
Problems 32
CHAPTER 7
Financial Analysis Techniques 37
Learning Outcomes 37
Summary Overview 37
Problems 38
CHAPTER 8
Inventories 45
Learning Outcomes 45
Summary Overview 45
Problems 47
CHAPTER 9
Long-Lived Assets 61
Learning Outcomes 61
Summary Overview 62
Problems 64
CHAPTER 10
Non-Current (Long-Term) Liabilities 73
Learning Outcomes 73
Summary Overview 73
Problems 75
CHAPTER 11
Financial Reporting Quality 79
Learning Outcomes 79
Summary Overview 79
Problems 80
CHAPTER 12
Financial Statement Analysis: Applications 83
Learning Outcomes 83
Summary Overview 83
Problems 84
CHAPTER 13
Income Taxes 87
Learning Outcomes 87
Contents vii
Summary Overview 88
Problems 88
CHAPTER 14
Employee Compensation: Post-Employment and Share-Based 93
Learning Outcomes 93
Summary Overview 93
Problems 94
CHAPTER 15
Intercorporate Investments 101
Learning Outcomes 101
Summary Overview 101
Problems 102
CHAPTER 16
Multinational Operations 111
Learning Outcomes 111
Summary Overview 112
Problems 114
CHAPTER 17
Evaluating Quality of Financial Reports 121
Learning Outcomes 121
Summary Overview 121
Problems 123
CHAPTER 18
Integration of Financial Statement Analysis Techniques 125
Learning Outcomes 125
Summary Overview 125
Problems 126
PART II
Solutions
CHAPTER 1
Financial Statement Analysis: An Introduction 135
Solutions 135
CHAPTER 2
Financial Reporting Mechanics 137
Solutions 137
viii Contents
CHAPTER 3
Financial Reporting Standards 141
Solutions 141
CHAPTER 4
Understanding Income Statements 143
Solutions 143
CHAPTER 5
Understanding Balance Sheets 145
Solutions 145
CHAPTER 6
Understanding Cash Flow Statements 147
Solutions 147
CHAPTER 7
Financial Analysis Techniques 151
Solutions 151
CHAPTER 8
Inventories 155
Solutions 155
CHAPTER 9
Long-Lived Assets 161
Solutions 161
CHAPTER 10
Non-Current (Long-Term) Liabilities 165
Solutions 165
CHAPTER 11
Financial Reporting Quality 167
Solutions 167
CHAPTER 12
Financial Statement Analysis: Applications 171
Solutions 171
CHAPTER 13
Income Taxes 173
Solutions 173