Exam (elaborations)
Solution Manual for Financial Statement Analysis 11th edition by KR Suramanyam
- Course
- Institution
Solution Manual for Financial Statement Analysis 11th edition by KR Suramanyam
[Show more]
Content preview
Chaptera02a-aFinancialaReportingaandaAnalysisChapter 2 a
Financial Reporting and Analysis
a a a
REVIEW
Financialastatementsaareatheamostavisibleaproductsaofaaacompany’safinanciala reportingaproces
s.aTheafinancialareportingaprocessaisagovernedabyaaccountingarulesaandastandards,amanageriala
incentives,aandaenforcementaandamonitoringamechanisms.aItaisaimportanta foraaauseraofafinancia
lainformationatoaunderstandatheafinancialareportingaenvironmentaalongawithatheaaccountingainfo
rmationapresentedainafinancialastatements.aInathisachapter,atheaconceptsaunderlyingafinancialare
portingaareadiscussedawithaspecialaemphasisaonaaccountingarules.aNextatheapurposeaofafinancia
lareportingaisadiscusseda–
aitsaobjectivesaandahow atheseaobjectivesadetermineabothatheaqualityaofatheaaccountingainformati
onaandatheaprinciplesathataunderlieatheaaccountingarules.aThearelevanceaofaaccountingainformati
onaforabusinessaanalysisa andavaluationaisaalsoadiscussedaandalimitationsaofaaccountingainform
ationaareaidentified.aLast,aaccrualaaccountingaisadiscussedaincludingatheastrengthsaandalimitatio
naofaaccruals,aandatheaimplicationsaofaaccrualsaforafinancialastatementaanalysis.
,Chaptera02a-aFinancialaReportingaandaAnalysis
OUTLINE
FinancialaReportingaEnvironment
StatutoryaFinancialaReports
FinancialaStatements
EarningsaAnnouncements
OtheraStatutoryaReports
FactorsaAffectingaStatutoryaFinancialaReports
GenerallyaAcceptedaAccountingaPrinciples
GAAPaDefined
SettingaAccountingaStandards
RoleaofatheaSecuritiesaandaExchangeaCommission
InternationalaAccountingaStandards
Managers
MonitoringaandaEnforcementaMechanisms
SecuritiesaandaExchangeaCommission
Auditing
CorporateaGovernance
Litigation
AlternativeaInformationaSources
Economic,aIndustry,aandaCompanyaInformation
VoluntaryaDisclosure
InformationaIntermediaries
NatureaandaPurposeaofaFinancialaAccounting
ObjectivesaofaFinancialaAccounting
Stewardship
InformationaforaDecisions
DesirableaQualitiesaofaAccountingaInformation
PrimaryaQualities:aRelevanceaandaReliability
SecondaryaQualities:aComparabilityaandaConsistency
ImportantaPrinciplesaofaAccounting
Double-Entry
HistoricalaCost
AccrualaAccounting
FullaDisclosure
Materiality
Conservatism
RelevanceaandaLimitationsaofaAccounting
RelevanceaofaFinancialaAccountingaInformation
LimitationsaofaFinancialaStatementaInformation
RelevanceaandaLimitationsaofaAccrualaAccounting
RelevanceaofaAccrualaAccounting
ConceptualaRelevanceaofaAccrualaAccounting
EmpiricalaRelevanceaofaAccrualaAccounting
AccrualsaCanaBeaaaDouble-EdgedaSword
AnalysisaImplicationsaofaAccrualaAccounting
MythsaandaTruthsaAboutaAccrualsaandaCashaFlows
AccrualsaandaCashaFlowsa–aMyths
,Chaptera02a-aFinancialaReportingaandaAnalysis
AccrualsaandaCashaFlowsa–
aTruthsaShouldaWeaForsakeaAccrualsaforaCash
aFlows?
ConceptaofaIncomeaEc
onomicaConceptaofaIncome
EconomicaIncomea
PermanentaIncomea
OperatingaIncome
AccountingaConceptaofaIncome
RevenueaRecognitionaandaMatching
AnalysisaImplications
FairaValueaAccountingaUnders
tandingaFairaValueaAccountingaConsid
erationsainaMeasuringaFairaValue
HierarchyaofaInputsa
AnalysisaImplications
IntroductionatoaAccountingaAnalysisa
NeedaforaAccountingaAnalysis
AccountingaDistortionsaAcco
untingaStandardsaEsti
mationaErrors
ReliabilityaversusaRelevancea
EarningsaManagement
AnalysisaObjectives
ComparativeaAnalysisa
IncomeaMeasurement
EarningsaManagement
EarningsaManagementaStrategiesa
IncreasingaIncome
BigaBath
Incomea SmoothingaMotivation
saforaEarningsaManagement
ContractingaIncentivesa
StockaPriceaEffectsaOt
heraIncentives
MechanicsaofaEarningsaManagementa
IncomeaShifting
ClassificatoryaEarningsaManagement
AnalysisaImplicationsaofaEarningsaManagement
ProcessaofaAccountingaAnalysisaE
valuatingaEarningsaQuality
StepsainaEvaluatingaEarningsaQualitya
AdjustingaFinancialaStatements
Appendixa2A:aEarningsaQualityaD
eterminantsaofaEarningsaQuality
AccountingaPrinciples
IncomeaStatementaAnalysisaofaEarningsaQualitya
AnalysisaofaMaintenanceaandaRepairs
, Chaptera02a-aFinancialaReportingaandaAnalysis
AnalysisaofaAdvertising
AnalysisaofaResearchaandaDevelopmenta
AnalysisaofaOtheraDiscretionaryaCosts
BalanceaSheetaAnalysisaofaEarningsaQuality
ConservatismainaReportedaAssetsaConser
vatismainaReportedaProvisionsaandaLiabiliti
esaRisksainaReportedaAssets
ExternalaFactorsaandaEarningsaQuality
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AGRADEPROMASTER. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $19.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now