Reading Between the Lines of Corporate Financial Reports: In Search of Financial Misstatements Jacek Welc

Reading Between the Lines of Corporate Financial Reports: In Search of Financial Misstatements – Ebook Instant Download/Delivery ISBN(s): 9783030610401,3030610403

Product details:

• ISBN-10 ‏ : ‎ 3030610403
• ISBN-13 ‏ : ‎ 978-3030610401
• Author: Jacek Welc

This book provides a digestible step-by-step guide to reading corporate financial reports, drawing upon real-life case studies and examples of corporate collapses and accounting scandals, and applying practical tools to financial statement analysis. Appealing to a range of practitioners within corporate finance including investors, managers, and business analysts, this book is the first to specifically address the challenges facing those who are not professional accountants and auditors when examining corporate financial reports.

Corporate financial reports are used widely by managers, investors, creditors, and government agencies to examine company performance and evaluate potential risks. However, although seemingly an invaluable source of information for managerial decision-making, financial reports are often based on rough simplifications of a very complex reality. With no way of avoiding deliberate manipulations and fraudulent activity, these statements cannot be relied on completely when selecting stocks or evaluating credit risk, and therefore poor analysis can lead to potentially disastrous investment decisions.
The author suggests that in order to effectively interpret corporate financial reports, we must ‘read between the lines’ to accurately assess a company’s economic performance and predict its long-term viability.

Table of contents:

1 Most Common Distortions in a Financial Statement Analysis Caused by Objective Weaknesses of Accounting and Analytical Methods

2 Other Distortions in a Financial Statement Analysis Caused by Objective Weaknesses of Accounting and Analytical Methods

3 Introduction and RevenueOriented Accounting Gimmicks

4 ExpenseOriented Accounting Gimmicks and Intentional Profit Understatements

5 Evaluation of Financial Statement Reliability and Comparability Based on Auditors Opinion Narrative Disclosures and Cash Flow Data

6 Problems of Comparability and Reliability of Reported Cash Flows

7 Primary Warning Signals

8 Additional Warning Signals

9 Selected Simple Tools

10 Some More Advanced Tools

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