FOREWORD
The stated objective of the International Accounting Standards Board is to produce accounting standards that are principle based, internally consistent, and internationally accepted. The resulting financial statements should provide a framework that gives capital market participants the tools to make rational and intelligent decisions. As an interpreter of the numbers that appear in the financial statements, the analyst is critical in this process.
International Financial Statement Analysis, second edition, looks at the subject from the analyst’s perspective. In today’s markets, analysts must make valuation estimates and accompanying decisions in an international context, which, in principle, is no different from a purely domestic one. In both cases, the financial reporting model is the primary source of the information required. Thus, this text focuses on the reporting model and uses learning outcomes and techniques designed to elicit careful analysis.
Moreover, although collecting and analyzing data is the core analytical function, communication is also critical. Even the best and most rigorous analysis must be supplemented by an understanding of how investment decisions are made, or else it will fail its purpose. It must be communicated to the intended recipient in a way that explains the logic behind the valuation estimate or recommendation and in a way that promotes understanding and action. This text wonderfully helps bridge the gap between analytical methods and ...
