{"product_id":"corporate-financial-reporting-and-analysis-isbn-9781119494577","title":"Corporate Financial Reporting and Analysis","description":"\u003ci\u003eCorporate Financial Reporting Analysis\u003c\/i\u003e combines comprehensive coverage and a rigorous approach to modern financial reporting with a readable and accessible style. Merging traditional principles of corporate finance and accepted reporting practices with current models enable the reader to develop essential interpretation and analysis skills, while the emphasis on real-world practicality and methodology provides seamless coverage of both GAAP and IFRS requirements for enhanced global relevance. \u003cbr\u003e\u003cbr\u003eTwo decades of classroom testing among INSEAD MBA students has honed this text to provide the clearest, most comprehensive model for financial statement interpretation and analysis; a concise, logically organized pedagogical framework includes problems, discussion questions, and real-world case studies that illustrate applications and current practices, and in-depth examination of key topics clarifies complex concepts and builds professional intuition. With insightful coverage of revenue recognition, inventory accounting, receivables, long-term assets, M\u0026amp;A, income taxes, and other principle topics, this book provides both education and ongoing reference for MBA students. \u003cp\u003eAbout the Authors iv\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 An Introduction to Financial Statements 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Three Principal Financial Statements, 2\u003c\/p\u003e \u003cp\u003eOther Items in the Annual Report, 9\u003c\/p\u003e \u003cp\u003eGenerally Accepted Accounting Principles: The Rules of the Game, 12\u003c\/p\u003e \u003cp\u003eThe Barriers to Understanding Financial Statements, 12\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 14\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 15\u003c\/p\u003e \u003cp\u003eQuestions, 15\u003c\/p\u003e \u003cp\u003eProblems: 15\u003c\/p\u003e \u003cp\u003e1.1 Balance Sheet Terminology, 15\u003c\/p\u003e \u003cp\u003e1.2 Understanding Balance Sheet Relationships, 16\u003c\/p\u003e \u003cp\u003e1.3 Interpreting an Auditor’s Opinion, 16\u003c\/p\u003e \u003cp\u003eCase Studies: 17\u003c\/p\u003e \u003cp\u003e1-1 Apple: An Introduction to Financial Statement Analysis, 17\u003c\/p\u003e \u003cp\u003e1-2 Pepsico: Communicating Financial Performance, 20\u003c\/p\u003e \u003cp\u003eNotes, 23\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Balance Sheet and Income Statement 24\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Further Look at the Balance Sheet, 24\u003c\/p\u003e \u003cp\u003eAssets, 25\u003c\/p\u003e \u003cp\u003eLiabilities, 27\u003c\/p\u003e \u003cp\u003eShareholders’ Equity, 28\u003c\/p\u003e \u003cp\u003eA Further Look at the Income Statement, 29\u003c\/p\u003e \u003cp\u003eOther Things You Should Know About the Balance Sheet and the Income Statement, 30\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 32\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 33\u003c\/p\u003e \u003cp\u003eQuestions, 33\u003c\/p\u003e \u003cp\u003eAppendix 2.1 The Mechanics of Financial Accounting: The Double-Entry System, 33\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Appendix, 42\u003c\/p\u003e \u003cp\u003eKey Lessons from the Appendix, 42\u003c\/p\u003e \u003cp\u003eProblem: 42\u003c\/p\u003e \u003cp\u003e2.1 Preparing a Balance Sheet and an Income Statement, 42\u003c\/p\u003e \u003cp\u003eCase Study: 43\u003c\/p\u003e \u003cp\u003e2-1 JanMar Fabrics: Preparing the Balance Sheet and Income Statement, 43\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 A Brief Overview of GAAP and IFRS: The Framework for Financial Accounting 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Core Principles of GAAP and IFRS, 45\u003c\/p\u003e \u003cp\u003eThe Key Qualitative Characteristics of Financial Information, 47\u003c\/p\u003e \u003cp\u003eThe Key Assumptions of Financial Information, 48\u003c\/p\u003e \u003cp\u003eModifying Conventions, 48\u003c\/p\u003e \u003cp\u003eThe Future of Financial Reporting, 49\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 50\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 51\u003c\/p\u003e \u003cp\u003eQuestions, 51\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 Revenue Recognition 52\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 52\u003c\/p\u003e \u003cp\u003eThe Five-Step Revenue Recognition Model, 52\u003c\/p\u003e \u003cp\u003eRevenue-Recognition Controversies, 65\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 68\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 68\u003c\/p\u003e \u003cp\u003eQuestions, 68\u003c\/p\u003e \u003cp\u003eProblems: 68\u003c\/p\u003e \u003cp\u003e4.1 Revenue Recognition at and After Time of Sale, 68\u003c\/p\u003e \u003cp\u003e4.2 Recognizing Revenue Over Time, 69\u003c\/p\u003e \u003cp\u003e4.3 Journal Entries for Gift Cards, 69\u003c\/p\u003e \u003cp\u003e4.4 Recognizing Revenue Over Time, 69\u003c\/p\u003e \u003cp\u003e4.5 Revenue Recognition in Different Types of Businesses, 69\u003c\/p\u003e \u003cp\u003eCase Studies: 70\u003c\/p\u003e \u003cp\u003e4-1 Kiwi Builders, Ltd., 70\u003c\/p\u003e \u003cp\u003e4-2 Revenue Recognition at Starbucks Corporation, 70\u003c\/p\u003e \u003cp\u003e4-3 Network Associates (McAfee): A Case of “Channel Stuffing”, 77\u003c\/p\u003e \u003cp\u003eNotes, 79\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 The Statement of Cash Flows 80\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 80\u003c\/p\u003e \u003cp\u003eThe Reporting of Cash Flows from Operations, 80\u003c\/p\u003e \u003cp\u003ePreparing the Statement of Cash Flows, 82\u003c\/p\u003e \u003cp\u003eIFRS and the Statement of Cash Flows, 90\u003c\/p\u003e \u003cp\u003eAnalyzing the Statement of Cash Flows, 90\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 94\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 94\u003c\/p\u003e \u003cp\u003eQuestions, 95\u003c\/p\u003e \u003cp\u003eProblems: 95\u003c\/p\u003e \u003cp\u003e5.1 Interpreting the Statement of Cash Flows, 95\u003c\/p\u003e \u003cp\u003e5.2 Adjustments on the Statement of Cash Flows, 95\u003c\/p\u003e \u003cp\u003e5.3 Preparing and Analyzing a Statement of Cash Flows, 97\u003c\/p\u003e \u003cp\u003e5.4 Interpreting the Role of Accounts Payable in Cash Flow from Operations, 97\u003c\/p\u003e \u003cp\u003e5.5 Manipulating the Statement of Cash Flows, 98\u003c\/p\u003e \u003cp\u003e5.6 Analysis of the Statement of Cash Flows, 98\u003c\/p\u003e \u003cp\u003e5.7 Cash Flow and Credit Risk, 99\u003c\/p\u003e \u003cp\u003e5.8 Preparing and Interpreting the Statement of Cash Flows, 100\u003c\/p\u003e \u003cp\u003eCase Studies: 100\u003c\/p\u003e \u003cp\u003e5-1 Blockbuster Inc.: Movie Rentals, Profits, and Operating Cash, 100\u003c\/p\u003e \u003cp\u003e5-2 Monahan Manufacturing: Preparing and Interpreting a Statement of Cash Flows, 107\u003c\/p\u003e \u003cp\u003e5-3 A Tale of Three Companies: Cash Flows at Sun Microsystems,Wal-Mart, and Merck, 108\u003c\/p\u003e \u003cp\u003e5-4 Inditex: Analyzing the Statement of Cash Flows, 110\u003c\/p\u003e \u003cp\u003eNotes, 114\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 Financial Statement Analysis 115\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 115\u003c\/p\u003e \u003cp\u003eBusiness and Industry Analysis, 116\u003c\/p\u003e \u003cp\u003eAccounting Analysis, 119\u003c\/p\u003e \u003cp\u003eFinancial Analysis, 119\u003c\/p\u003e \u003cp\u003eDupont Analysis, 122\u003c\/p\u003e \u003cp\u003eROE and the Analysis of Financial Risk, 129\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 136\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 137\u003c\/p\u003e \u003cp\u003eQuestions, 137\u003c\/p\u003e \u003cp\u003eAppendix 6.1 An Industry and Competitive Analysis of Taiwan Semiconductor Manufacturing Company (TSMC), 137\u003c\/p\u003e \u003cp\u003eAppendix 6.2 Summary of Financial Statement Ratios, 139\u003c\/p\u003e \u003cp\u003eProblems: 141\u003c\/p\u003e \u003cp\u003e6.1 Financial Statement Detective Exercise, 141\u003c\/p\u003e \u003cp\u003e6.2 Effects of Transactions on Selected Balance Sheet Figures, 143\u003c\/p\u003e \u003cp\u003e6.3 Calculating and Interpreting PP\u0026amp;E Turnover Ratios, 144\u003c\/p\u003e \u003cp\u003e6.4 Financial Statement Detective Exercise in the Pharmaceutical Industry, 144\u003c\/p\u003e \u003cp\u003e6.5 Comprehensive Financial Ratio Analysis, 146\u003c\/p\u003e \u003cp\u003e6.6 Profitability Analysis for The Home Depot, 146\u003c\/p\u003e \u003cp\u003e6.7 Comparative Analysis of Receivables and Inventories, 147\u003c\/p\u003e \u003cp\u003eCase Studies: 147\u003c\/p\u003e \u003cp\u003e6-1 Profitability Analysis and WalMart’s Suppliers, 147\u003c\/p\u003e \u003cp\u003e6-2 LVMH and Warnaco: Strategy and Financial Statement Analysis, 148\u003c\/p\u003e \u003cp\u003eNotes, 153\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Business Valuation and Financial Statement Analysis 154\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eValuation Principles, 154\u003c\/p\u003e \u003cp\u003eValuation: From Theory to Practice, 155\u003c\/p\u003e \u003cp\u003eThe Economic Profit Approach to Valuation, 156\u003c\/p\u003e \u003cp\u003eA Case Study in Valuation: TSMC, 158\u003c\/p\u003e \u003cp\u003eA Brief Word on Growth Rates, 162\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 165\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 165\u003c\/p\u003e \u003cp\u003eQuestions, 165\u003c\/p\u003e \u003cp\u003eProblems: 165\u003c\/p\u003e \u003cp\u003e7.1 Estimating the Value of The Home Depot, 165\u003c\/p\u003e \u003cp\u003e7.2 Explaining Differences in P\/E Ratios, 166\u003c\/p\u003e \u003cp\u003e7.3 Explaining Differences in P\/E Ratios, 166\u003c\/p\u003e \u003cp\u003eCase Study: 166\u003c\/p\u003e \u003cp\u003e7-1 Valuation Based on Discounted Cash Flows: The Case of Vardon Golf Ltd., 166\u003c\/p\u003e \u003cp\u003eNotes, 167\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Accounting for Receivables and Bad Debts 168\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 168\u003c\/p\u003e \u003cp\u003eEstimating Bad Debts, 168\u003c\/p\u003e \u003cp\u003eWriting off Accounts, 169\u003c\/p\u003e \u003cp\u003eThe Direct Method: An Alternative Approach, 169\u003c\/p\u003e \u003cp\u003eWhat Happens When Written-off Accounts are Later Collected?, 170\u003c\/p\u003e \u003cp\u003eThe “Aging” of Accounts Receivable, 170\u003c\/p\u003e \u003cp\u003eSales Returns and Allowances, 171\u003c\/p\u003e \u003cp\u003eAnalyzing Receivables, 172\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 173\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 173\u003c\/p\u003e \u003cp\u003eQuestions, 173\u003c\/p\u003e \u003cp\u003eAppendix 8.1 Accounting for Loan Loss Reserves, 173\u003c\/p\u003e \u003cp\u003eProblems: 175\u003c\/p\u003e \u003cp\u003e8.1 Bad Debts on Loans Receivable, 175\u003c\/p\u003e \u003cp\u003e8.2 Determining Bad Debt Expense from an Aging Schedule, 175\u003c\/p\u003e \u003cp\u003e8.3 Analyzing Receivables and the Allowance for Doubtful Accounts, 175\u003c\/p\u003e \u003cp\u003e8.4 Provisions for Credit Losses, 181\u003c\/p\u003e \u003cp\u003eCase Studies: 182\u003c\/p\u003e \u003cp\u003e8-1 Receivables and Bad Debts at Toyota, 182\u003c\/p\u003e \u003cp\u003e8-2 Johnson Perry, 182\u003c\/p\u003e \u003cp\u003e8-3 Citigroup Inc.: Accounting for Loan Loss Reserves, 185\u003c\/p\u003e \u003cp\u003eNotes, 191\u003c\/p\u003e \u003cp\u003e\u003cb\u003e9 Accounting for Inventory 192\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 192\u003c\/p\u003e \u003cp\u003eInventory Valuation: LIFO, FIFO, and the Rest, 195\u003c\/p\u003e \u003cp\u003eThe Lower of Cost or Net Realizable Value Rule, 196\u003c\/p\u003e \u003cp\u003eThe Cost-Flow Assumptions: An Example, 196\u003c\/p\u003e \u003cp\u003eInventory Cost-Flow Assumptions: A Summary, 199\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 200\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 200\u003c\/p\u003e \u003cp\u003eQuestions, 200\u003c\/p\u003e \u003cp\u003eProblems: 201\u003c\/p\u003e \u003cp\u003e9.1 Calculating Inventory Under the FIFO and Average-Cost Methods, 201\u003c\/p\u003e \u003cp\u003e9.2 Inventories and Ratio Analysis, 201\u003c\/p\u003e \u003cp\u003e9.3 Correcting Inventory Errors, 201\u003c\/p\u003e \u003cp\u003e9.4 The Lower of Cost or Net Realizable Value Rule, 201\u003c\/p\u003e \u003cp\u003e9.5 Calculating Cost of Goods Sold Under FIFO and Specific Identification, 201\u003c\/p\u003e \u003cp\u003eCase Studies: 202\u003c\/p\u003e \u003cp\u003e9-1 LIFO Accounting at Tamar Chemicals, 202\u003c\/p\u003e \u003cp\u003e9-2 Deere and CNH Global: Performance Effects of Inventory Accounting Choice, 202\u003c\/p\u003e \u003cp\u003eNotes, 208\u003c\/p\u003e \u003cp\u003e\u003cb\u003e10 Accounting for Property, Plant, and Equipment 209\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 209\u003c\/p\u003e \u003cp\u003eInitial Recognition of PP\u0026amp;E, 210\u003c\/p\u003e \u003cp\u003eSubsequent Expenditures: Repair or Improvement?, 211\u003c\/p\u003e \u003cp\u003eAccounting for Depreciation, 211\u003c\/p\u003e \u003cp\u003eChanges in Depreciation Estimates or Methods, 213\u003c\/p\u003e \u003cp\u003eAsset Impairment, 214\u003c\/p\u003e \u003cp\u003eFair Value vs. Historical Cost, 215\u003c\/p\u003e \u003cp\u003eDivestitures and Asset Sales, 216\u003c\/p\u003e \u003cp\u003eIntangible Assets, 216\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 218\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 218\u003c\/p\u003e \u003cp\u003eQuestions, 218\u003c\/p\u003e \u003cp\u003eProblems: 219\u003c\/p\u003e \u003cp\u003e10.1 Comparing the Effects of Depreciation Choice on Financial Ratios, 219\u003c\/p\u003e \u003cp\u003e10.2 Analyzing Depreciation on PP\u0026amp;E, 219\u003c\/p\u003e \u003cp\u003e10.3 Calculating and Analyzing Amortization Expense, 220\u003c\/p\u003e \u003cp\u003e10.4 Calculating Depreciation Expense, 220\u003c\/p\u003e \u003cp\u003e10.5 Effects of Changes in Estimates on Depreciation Expense, 221\u003c\/p\u003e \u003cp\u003e10.6 Interpreting Disclosures for Property, Plant and Equipment, 221\u003c\/p\u003e \u003cp\u003e10.7 Capitalizing or Expensing Costs, 224\u003c\/p\u003e \u003cp\u003e10.8 Journal Entries for Depreciation and Amortization Expense, 224\u003c\/p\u003e \u003cp\u003e\u003cb\u003e11 Leases and Off-Balance-Sheet Debt 225\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 225\u003c\/p\u003e \u003cp\u003eLeasing Accounting Before 2018: Capital vs. Operating Leases, 225\u003c\/p\u003e \u003cp\u003eAccounting for Capital Leases, 226\u003c\/p\u003e \u003cp\u003eAccounting for Operating Leases, 227\u003c\/p\u003e \u003cp\u003eLease Accounting: An Example, 227\u003c\/p\u003e \u003cp\u003eInterpreting Lease Disclosures, 229\u003c\/p\u003e \u003cp\u003eOff-Balance-Sheet Debt, 230\u003c\/p\u003e \u003cp\u003eRecent Developments in Lease Accounting, 231\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 233\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 233\u003c\/p\u003e \u003cp\u003eQuestions, 233\u003c\/p\u003e \u003cp\u003eProblem: 233\u003c\/p\u003e \u003cp\u003e11.1 The Financial Reporting Effects of Selling Receivables, 233\u003c\/p\u003e \u003cp\u003eCase Studies: 234\u003c\/p\u003e \u003cp\u003e11-1 Lease Accounting at Metro AG, 234\u003c\/p\u003e \u003cp\u003e11-2 Pennzoil-Quaker State and the Sale of Receivables, 235\u003c\/p\u003e \u003cp\u003e11-3 Executory Contracts, 235\u003c\/p\u003e \u003cp\u003eNote, 235\u003c\/p\u003e \u003cp\u003e\u003cb\u003e12 Accounting for Bonds 236\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 236\u003c\/p\u003e \u003cp\u003eAccounting for Bond Issuance, 237\u003c\/p\u003e \u003cp\u003eAccounting for Bonds Sold at Par, 238\u003c\/p\u003e \u003cp\u003eAccounting for Bonds Sold at a Premium, 238\u003c\/p\u003e \u003cp\u003eBond Redemption Before Maturity, 242\u003c\/p\u003e \u003cp\u003eAccounting for Bonds Issued at a Discount, 242\u003c\/p\u003e \u003cp\u003eZero-Coupon Bonds, 244\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 246\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 246\u003c\/p\u003e \u003cp\u003eQuestions, 247\u003c\/p\u003e \u003cp\u003eProblems: 247\u003c\/p\u003e \u003cp\u003e12.1 Journal Entries and Balance Sheet Presentation for Bonds, 247\u003c\/p\u003e \u003cp\u003e12.2 Amortization of Bond Discount and Premium, 247\u003c\/p\u003e \u003cp\u003e12.3 Journal Entries for Bond Issuance and Subsequent Interest Payments, 247\u003c\/p\u003e \u003cp\u003e\u003cb\u003e13 Provisions and Contingencies 248\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 248\u003c\/p\u003e \u003cp\u003eDefining Provisions, 249\u003c\/p\u003e \u003cp\u003eMeasuring the Provision, 249\u003c\/p\u003e \u003cp\u003eDisclosure of Provisions: Interpreting the Notes, 250\u003c\/p\u003e \u003cp\u003eContingent Liabilities, 251\u003c\/p\u003e \u003cp\u003eContingent Assets, 254\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 254\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 254\u003c\/p\u003e \u003cp\u003eQuestions, 254\u003c\/p\u003e \u003cp\u003eProblems: 255\u003c\/p\u003e \u003cp\u003e13.1 Accounting for Warranties, 255\u003c\/p\u003e \u003cp\u003e13.2 Analyzing and Interpreting Disclosures on the Provision for Warranties, 255\u003c\/p\u003e \u003cp\u003eCase Studies: 255\u003c\/p\u003e \u003cp\u003e13-1 Accounting for Contingent Assets: The Case of Cardinal Health, 255\u003c\/p\u003e \u003cp\u003e13-2 Firestone Tire and Rubber Company (A), 257\u003c\/p\u003e \u003cp\u003e13-3 Firestone Tire and Rubber Company (B), 259\u003c\/p\u003e \u003cp\u003eNotes, 259\u003c\/p\u003e \u003cp\u003e\u003cb\u003e14 Accounting for Pensions 260\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 260\u003c\/p\u003e \u003cp\u003eA Brief Word on Defined Contribution Plans, 260\u003c\/p\u003e \u003cp\u003eUnfunded Defined Benefit Plans, 261\u003c\/p\u003e \u003cp\u003eFunded Defined Benefit Plans, 261\u003c\/p\u003e \u003cp\u003eAmerican Airlines: An Example of Defined Benefit Plan Disclosure, 267\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 269\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 270\u003c\/p\u003e \u003cp\u003eQuestions, 270\u003c\/p\u003e \u003cp\u003eCase Study: 270\u003c\/p\u003e \u003cp\u003e14-1 Comprehensive Pension Review Problem: Cathay Pacific, 270\u003c\/p\u003e \u003cp\u003eNote, 273\u003c\/p\u003e \u003cp\u003e\u003cb\u003e15 Accounting for Income Tax 274\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 274\u003c\/p\u003e \u003cp\u003eTemporary and Permanent Differences, 275\u003c\/p\u003e \u003cp\u003eDeferred Taxes and the Balance Sheet Approach, 276\u003c\/p\u003e \u003cp\u003eThe Balance Sheet Approach: An Example, 277\u003c\/p\u003e \u003cp\u003eInterpreting Income Tax Disclosures: The Case of Intel Corporation, 279\u003c\/p\u003e \u003cp\u003eWhy Deferred Income Tax is Important, 284\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 285\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 285\u003c\/p\u003e \u003cp\u003eQuestions, 285\u003c\/p\u003e \u003cp\u003eProblems: 285\u003c\/p\u003e \u003cp\u003e15.1 Calculating Temporary and Permanent Differences, 285\u003c\/p\u003e \u003cp\u003e15.2 Interpreting Income Tax Disclosures, 286\u003c\/p\u003e \u003cp\u003e15.3 Deferred Income Taxes and the Statement of Cash Flows, 286\u003c\/p\u003e \u003cp\u003eCase Study: 288\u003c\/p\u003e \u003cp\u003e15-1 Deferred Tax Assets and the Valuation Allowance: The Case of Ford Motor Company, 288\u003c\/p\u003e \u003cp\u003eNotes, 292\u003c\/p\u003e \u003cp\u003e\u003cb\u003e16 Accounting for Shareholders’ Equity 293\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 293\u003c\/p\u003e \u003cp\u003eShareholders’ Equity: An Introduction, 293\u003c\/p\u003e \u003cp\u003eMore on Contributed Capital, 297\u003c\/p\u003e \u003cp\u003eAccounting for Stock Transactions, 298\u003c\/p\u003e \u003cp\u003eDividends on Common Stock, 301\u003c\/p\u003e \u003cp\u003eStock Dividends and Stock Splits, 303\u003c\/p\u003e \u003cp\u003eAccumulated Other Comprehensive Income, 305\u003c\/p\u003e \u003cp\u003eConvertible Bonds, 305\u003c\/p\u003e \u003cp\u003eThe Statement of Shareholders’ Equity, 307\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 308\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 308\u003c\/p\u003e \u003cp\u003eQuestions, 308\u003c\/p\u003e \u003cp\u003eProblems: 309\u003c\/p\u003e \u003cp\u003e16.1 Effect of Selected Transactions on Net Income and Shareholders’ Equity, 309\u003c\/p\u003e \u003cp\u003e16.2 Share Buybacks, 309\u003c\/p\u003e \u003cp\u003e16.3 The Financial Statement Effects of Dividend Payments and Buybacks, 309\u003c\/p\u003e \u003cp\u003e16.4 The Accounting and Economic Consequences of Stock Splits and Stock Dividends, 310\u003c\/p\u003e \u003cp\u003eCase Studies: 310\u003c\/p\u003e \u003cp\u003e16-1 Stock Options, Stock Dividends, and Stock Splits, 310\u003c\/p\u003e \u003cp\u003e16-2 Share Buybacks: Economic Rationale and Financial Reporting Effects, 311\u003c\/p\u003e \u003cp\u003e16-3 The Accounting for Convertible Bonds, 311\u003c\/p\u003e \u003cp\u003e16-4 Why Do Companies Buy Back Their Own Shares? The Case of the Scomi Group, 311\u003c\/p\u003e \u003cp\u003eNotes, 312\u003c\/p\u003e \u003cp\u003e\u003cb\u003e17 Investments 313\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 313\u003c\/p\u003e \u003cp\u003eInvestments at Microsoft, 313\u003c\/p\u003e \u003cp\u003eDebt and Passive Equity Investments, 314\u003c\/p\u003e \u003cp\u003eThe Fair Value Hierarchy, 316\u003c\/p\u003e \u003cp\u003eEquity Method, 317\u003c\/p\u003e \u003cp\u003eA Further Look at Microsoft’s Investments, 319\u003c\/p\u003e \u003cp\u003eConsolidation, 321\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 323\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 324\u003c\/p\u003e \u003cp\u003eQuestions, 324\u003c\/p\u003e \u003cp\u003eProblems: 324\u003c\/p\u003e \u003cp\u003e17.1 Classification of Long-Term Investments, 324\u003c\/p\u003e \u003cp\u003e17.2 The Effect of Transaction Cost on Marketable Securities and Investments, 325\u003c\/p\u003e \u003cp\u003e17.3 Journal Entries and Analysis Under the Equity Method, 325\u003c\/p\u003e \u003cp\u003e17.4 Review Problem, 325\u003c\/p\u003e \u003cp\u003e17.5 Mark-to-Market Accounting for Trading Securities, 326\u003c\/p\u003e \u003cp\u003e17.6 The Equity Method and the Statement of Cash Flows, 326\u003c\/p\u003e \u003cp\u003eCase Studies: 327\u003c\/p\u003e \u003cp\u003e17-1 Stora Enso: Accounting for Investments, 327\u003c\/p\u003e \u003cp\u003e17-2 Coca-Cola and Coca-Cola Enterprises: The Equity\u003c\/p\u003e \u003cp\u003eMethod in Practice, 328\u003c\/p\u003e \u003cp\u003eNotes, 328\u003c\/p\u003e \u003cp\u003e\u003cb\u003e18 Accounting for Mergers and Acquisitions 329\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction, 329\u003c\/p\u003e \u003cp\u003ePurchase Price\/Cost of Acquisition, 329\u003c\/p\u003e \u003cp\u003eContingent Consideration, 330\u003c\/p\u003e \u003cp\u003eRecognition and Measurement of Identifiable Assets, 330\u003c\/p\u003e \u003cp\u003eSubsequent Adjustments to Acquired Assets and Liabilities, 334\u003c\/p\u003e \u003cp\u003eGoodwill Impairment, 334\u003c\/p\u003e \u003cp\u003eNoncontrolling Interest, 335\u003c\/p\u003e \u003cp\u003eKey Lessons from the Chapter, 336\u003c\/p\u003e \u003cp\u003eKey Terms and Concepts from the Chapter, 336\u003c\/p\u003e \u003cp\u003eQuestions, 336\u003c\/p\u003e \u003cp\u003eProblems: 336\u003c\/p\u003e \u003cp\u003e18.1 Journal Entry for an Acquisition, 336\u003c\/p\u003e \u003cp\u003e18.2 Analysis of an Acquisition, 337\u003c\/p\u003e \u003cp\u003e18.3 Accounting for an Acquisition: Carrefour and BLC (China), 337\u003c\/p\u003e \u003cp\u003e18.4 Business Combinations at Tesco, 338\u003c\/p\u003e \u003cp\u003e18.5 AB InBev acquires SABMiller, 338\u003c\/p\u003e \u003cp\u003eAppendix: Tables for Present Value and Future Value Factors 342\u003c\/p\u003e \u003cp\u003eIndex 351\u003c\/p\u003e \u003cp\u003e\u003cb\u003eS. David Young\u003c\/b\u003e is Professor of Accounting and Control at INSEAD, based in Fontainebleau (France) and Singapore. He has been there since 1989. Professor Young holds a PhD from the University of Virginia and is both a Certified Public Accountant (USA) and a Chartered Financial Analyst. His primary areas of expertise are corporate financial reporting and value-based management, with works published in a wide variety of academic and professional journals, including several articles in the \u003ci\u003eHarvard Business Review\u003c\/i\u003e.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eJake Cohen\u003c\/b\u003e is Senior Associate Dean for Undergraduate and Masters' Programs at MIT Sloan School of Management and Senior Lecturer in Accounting and Law, where he has been since 2012. In his role, he oversees strategy for eight programs. From 2003 to 2011, Jake was an Affiliate Professor of Accounting and Control at INSEAD and was based in France and Singapore. He served as Director of the INSEAD-PricewaterhouseCoopers Research Center from 2004 to 2008 and as Dean of the MBA Program from 2008 to 2011.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eDaniel Bens\u003c\/b\u003e is a Professor at INSEAD, currently serving as the Chair of the Accounting and Control area. Previously, he was a faculty at the University of Arizona serving as Associate Dean of MBA programs. Prior to that he was a faculty at the University of Chicago, Booth School of Business from 1999 to 2005.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988993556709,"sku":"NP9781119494577","price":98.5,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119494577.jpg?v=1761782352","url":"https:\/\/k12savings.com\/es\/products\/corporate-financial-reporting-and-analysis-isbn-9781119494577","provider":"K12savings","version":"1.0","type":"link"}