How to Read a Financial Report - 9781118735848

Hidden somewhere among all the numbers in a financial report is vitally important information about where a company has been and where it is going. This is especially relevant in light of the current corporate scandals. The eighth edition of this bestselling book is designed to help anyone who works with financial reports--but has neither the time nor the need for an in-depth knowledge of accounting--cut through the maze of accounting information to find out what those numbers really mean.

This new edition will include updates to the following content: Recent movements in the accounting profession towards establishing separate accounting and financial reporting standards for private companies and for owner/manager and emerging businesses; lack of progress towards internationalization of accounting standards for public companies; requirements for XBRL tagging in reporting to the SEC (by public companies); emergence of popular web sites (e.g., Yahoo!Finance) for financial report information, as contrasted with actually reading a financial report; pending changes in the auditor’s report language and scope and what this means to investors; and responsibility of accounting profession in the recent financial recession.

Additionally, the book will also feature an associated website. The site will include: quizzes and tests, including feedback to reader for both right and wrong answers; Excel-based exhibits like those in the chapter to show alternative scenarios, and “what if” scenarios; and case studies.