This book focuses on the valuation needed to apply IFRS (International
Financial Reporting Standards), and provides coverage of financial
instruments - indeed this is the starting point of the exposition. The
book adopts a logical sequence where models of financial instruments are
explained first and models of other assets (such as property, an
enterprise, or multiple intangibles) are presented as extensions.
The book uses mathematical notation in presenting many of the models,
but the focus is on application rather than proof. The mathematics is
presented at a level that assumes sufficient background in high school
algebra and coordinate geometry, prior knowledge of elementary
probability, and a knowledge of basic statistics. Readers should also be
aware of what linear regression does and should be able to run a
regression and interpret the output. Calculus is not assumed.
The models discussed almost always require a computer to apply. However,
the emphasis is on understanding the models rather than learning
computer skills, especially in the case of financial instruments.