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Overview
Guide students through effective financial statement analysis using real companies with Wahlen/Baginski/Bradshaw's FINANCIAL REPORTING, FINANCIAL STATEMENT ANALYSIS AND VALUATION, 10E. This balanced, comprehensive approach reflects the latest developments in accounting standards, financial analysis and valuation. Students apply concepts from economics, business strategy, finance and accounting using the book's unique six-step process for analysis and valuation. Quick Checks after each section highlight key insights while a new continuing example in each chapter from The Clorox Company demonstrates how to apply each step of the analysis and valuation process to real financial statements. This edition features the latest examples from real companies as well as end-of-chapter problems, cases and an ongoing case from Walmart. MindTap digital resources and an updated Financial Statements Analysis Package (FSAP) are available to make analysis, forecasting and valuation more efficient.
- NEW CONTINUING CASE EXAMPLE FEATURES FINANCIAL REPORTING FOR THE CLOROX COMPANY. Students are able to apply all of the steps of the analysis, forecasting and valuation process to a new company: The Clorox Company. This engaging, timely and relevant golden-thread case company is featured throughout the book. You can use this strong, ongoing example company for in-class activities or discussion or for out-of-class assignments.
- NEW EMPHASIS ORIENTS RATIOS ANALYSIS TOOLS ON THE DRIVERS OF VALUE: PROFITABILITY, GROWTH AND RISK. Students use ratio analysis tools to focus on The Clorox Company in each chapter. Students benchmark each analysis using Clorox’s key competitor, Procter & Gamble. Both of these ongoing example companies are well-known to your students and are particularly relevant as the pandemic continues.
- UPDATED COVERAGE OF RATIOS ANALYSIS, ACCOUNTING QUALITY ANALYSIS AND FORECASTING REFLECTS THE LATEST ACCOUNTING STANDARDS. These updates include the new standards for revenue recognition and right-of-use assets and liabilities.
- NEW CONTENT DEMONSTRATES HOW TO COMPUTE IMPUTED INTEREST EXPENSE IN OPERATING LEASE LIABILITIES. Student also learn how to adjust operating income and interest expense to include imputed interest expense on leases within interest expense rather than within operating income. Students examine why this step is necessary for appropriate analysis of profitability for firms that have material amounts of imputed interest expense from operating lease liabilities. Students also learn why to conduct this step when comparing firms using U.S. GAAP versus IFRS.
- UPDATED CONTENT ON FORECASTING AND VALUATION DEMONSTRATES HOW A COMPANY CAN APPEAR TO BE OVERVALUED. Using the ongoing example of The Clorox Company, students examine how the organization appears to be overvalued at the time of the analysis, following fiscal year 2020. Students can also compare how, since that time, market share prices for Clorox have declined and are more in line with the authors' value estimates.
- REVISED AND UPDATED END-OF-CHAPTER PROBLEMS AND APPLICATIONS USE REAL COMPANIES AND THE LATEST FINANCIAL STATEMENT INFORMATION. Current end-of-chapter materials also include an ongoing golden-thread case company based on Walmart. You can use this as a consistent case assignment through the course that enables students to apply all of the steps to the analysis and valuation process.
- STREAMLINED PRESENTATIONS IN EACH CHAPTER CREATE A WELL-WRITTEN, ACCESSIBLE TEXT. Known for its clear presentation, this edition provides concise, direct discussions that quickly and efficiently emphasize key insights. To ensure a streamlined presentation, some highly technical and accounting-related material now appears only in online appendices that students can easily access.
- QUICK CHECKS IN EACH CHAPTER HIGHLIGHT KEY INSIGHTS FOR EVERY SECTION. All content for each section as well as end-of-chapter questions, exercises, problems and cases are cross-referenced to specific learning objectives. This further ensures that your students can implement the critical skills and techniques associated with each of the learning objectives.
- KEY CHAPTERS OFFER INSIGHTS ON PROFITABILITY ANALYSIS (CH. 4) AND RISK ANALYSIS (CH. 5). These chapters continue to highlight disaggregation of return on common equity along traditional lines of profitability, efficiency and leverage as well as along operating versus financing lines.
- COMPANION WEBSITE FOR THIS EDITION OFFERS UPDATED FINANCIAL RATIOS AND OTHER HELPFUL RESOURCES. An updated Appendix D on the companion website provides descriptive statistics on 20 commonly used financial ratios computed during the past ten years for 48 different industries. This ratios data enables students to benchmark their analyses and forecasts against industry averages.
- CHAPTERS ON ACCOUNTING QUALITY DISCUSS FINANCING, INVESTING AND OPERATING ACTIVITIES. Readers learn the determinants of accounting quality, how to evaluate accounting quality and how to adjust reported earnings and financial statements to cleanse low-quality accounting items. Discussion follows business activities, from raising financial capital and investing in productive assets to operating the business. Examples of foreign currency translation and accounting for various hedging activities also appear in online appendices.
- CHAPTERS ON ACCOUNTING QUALITY PROVIDE IN-DEPTH ANALYSIS. Chapters 6 through 9 explore balance sheet quality and income statement quality in detail to prepare students for financial reporting success. These chapters, along with the analysis chapters, include discussion of the latest accounting standards for revenue recognition and leases.
- EACH CHAPTER DISCUSSES CURRENT DEVELOPMENTS IN U.S. GAAP AND IFRS. Students examine how U.S. GAAP compares to IFRS and how to deal with such differences in financial statement analysis, including the different treatments of rent expense arising from operating leases. End-of-chapter materials contain many problems and cases involving non-U.S. companies, with application of financial statement analysis techniques to IFRS-based financial statements.
- EACH CHAPTER INCORPORATES A "GOLDEN THREAD" OR ONGOING COMPANY EXAMPLE. This edition highlights The Clorox Company. Just as past editions have successfully used continuing examples, this edition clearly illustrates the material in each chapter by referencing the financial statements and disclosures from The Clorox Company.
- CHAPTERS PROVIDE TIMELY INSIGHTS DRAWN FROM EMPIRICAL ACCOUNTING RESEARCH. Each chapter emphasizes a number of relevant, recent research developments regarding financial statement analysis and valuation.
- UPDATED INTEGRATIVE CASES AT THE END OF EACH CHAPTER HIGHLIGHT WALMART. Continuous, integrated case material at the conclusion of each chapter applies the concepts and tools discussed in that chapter to financial issues at Walmart.
- END-OF-CHAPTER PRACTICE HIGHLIGHTS NEW PROBLEMS AND CASES. Each chapter contains exercises, problems and cases drawn from real companies’ financial statements. This material is written for maximum learning value.
- FINANCIAL STATEMENT ANALYSIS PACKAGE (FSAP) OFFERS MORE PRACTICE. The FSAP designed to accompany this book is now updated to be more user-friendly. The FSAP offers additional valuable tools for mastering the book's content.
- MINDTAP DIGITAL LEARNING SOLUTION POWERS STUDENTS FROM MEMORIZATION TO MASTERY. Designed specifically to accompany this edition, MindTap online resources give you complete control of your course. You are able to provide engaging content, challenge every individual and to build student confidence. Empower students to accelerate their progress with MindTap.
2. Asset and Liability Valuation and Income Recognition.
3. Understanding the Statement of Cash Flows.
4. Profitability Analysis.
5. Risk Analysis.
6. Accounting Quality.
7. Financing Activities.
8. Investing Activities.
9. Operating Activities.
10. Forecasting Financial Statements.
11. Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach.
12. Valuation: Cash-Flow Based Approaches.
13. Valuation: Earnings-Based Approaches.
14. Valuation: Market-Based Approaches.
Appendix A: Financial Statements and Notes for The Clorox Company.
Appendix B (online): Management's Discussion and Analysis for The Clorox Company.
Appendix C: Financial Statement Analysis Package (FSAP).
Appendix D (online): Financial Statement Ratios: Descriptive Statistics by Industry.
Index.
Cengage provides a range of supplements that are updated in coordination with the main title selection. For more information about these supplements, contact your Learning Consultant.
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MindTap for Wahlen/Baginski/Bradshaw's Financial Reporting, Financial Statement Analysis and Valuation, 1 term Instant Access
ISBN: 9780357722114
MindTap for Wahlen/Baginski/Bradshaw’s Financial Reporting, Financial Statement Analysis and Valuation, 10th Edition is the digital learning solution that powers students from memorization to mastery. It gives you complete control of your course—to provide engaging content, to challenge every individual, and to build their confidence. Empower students to accelerate their progress with MindTap. MindTap: Powered by You.
MindTap gives you complete ownership of your content and learning experience. Customize the interactive syllabi, emphasize the most important topics, and add your own material or notes in the eBook.