The updated new edition of the comprehensive guide to reading and
understanding financial reports
Financial reports are used to provide a range of vital information,
including an organization's cash flow, financial condition, and profit
performance (aka The Big Three Financial Statements). Financial
statements are often complex and extremely difficult to understand for
anyone other than accounting and finance professionals. How to Read a
Financial Report enablesinvestors, lenders, business leaders, analysts,
and managers to read, analyze, and interpret financial accounting
reports. Designed specifically for non-specialists, this reader-friendly
resource covers the fundamentals of financial reporting in jargon-free
English. Topics such as sales revenue & recognition, costs of goods
sold, sources & uses of capital/cash, non-cash expenses (e.g.,
depreciation expense), income tax obligations, understanding profits &
financial stability, and financial statement ratios & analysis are
covered throughout the book.
Now in its ninth edition, this bestselling guide has been thoroughly
revised to reflect changes in accounting and financial reporting rules,
current practices, and recent trends. New and expanded content explains
managing cash flow, illustrates the deceitful misrepresentation of
profits in some financial reports (aka Financial Engineering), and more.
Further, end-of-chapter activities help readers learn the intricacies of
the balance sheet and cash flow statement, while updated sections
address shifts in regulatory standards. Written by two highly
experienced experts in financial accounting, this resource:
- Enables readers to cut through the noise and focus on what financial
reports and financial statements are really saying about a company
- Clarifies commonly misunderstood aspects of financial reporting and
how companies can "financially engineer" operating results
- Offers comprehensive, step-by-step guidance on analyzing financial
reports
- Provides numerous examples and explanations of various types of
financial reports and analysis tools
