Financial reporting and analysis

Features :
NEW—Analytical approach (without skimping on procedural details)—Focuses on the core topics. Revsine is the only book that combines 1) how to prepare a financial statement, with 2) an analysis of what the numbers truly mean.
NEW—Procedural coverage and review—Now includes an appendix at the end of Chapter 2 to review key procedures. In addition, faculty can package the text with the 2001 GAAP guide (a savings of over $50.00) or the Accounting Made Easy software package for a nominal price. Students get the review they need without having to purchase a separate supplement or wade through an exhaustive review of financial accounting.
NEW—Incentives—Every manager has incentives to present his or her firm in the most favorable light to lenders, equity investors and others. And, every manager wants to use the flexibility allowed by GAAP to manage the firm's earnings to achieve certain goals. Students see how California Micro Devices manipulated the numbers in the annual report to report a profit when they actually lost money! Ex. Ch.1 Students learn what happened at Bausch & Lomb when managers treated shipments of products to distributors as final sales. Students reading traditional texts would only know that receivables increased, while students learning from Revsine, 2/E would know that something was amiss when collections slowed and receivables increased faster than sales. Ex. Ch.8
NEW—Chapter 3 on income recognition—This new chapter contains a discussion of specialized areas of revenue recognition including SEC Staff Accounting Bulletin 101 on revenue recognition as well as other earnings management issues.
NEW—Derivative securities and hedge accounting (Chapter 11)—Features an expanded discussion of derivative securities, hedging transactions, and hedge accounting. The authors explain complex business transactions in words and graphs, followed by explanations of the various accounting rules that apply.
NEW—Apples to apples comparisons—Companies use different accounting methods. Transforming the numbers to a common base shows students how it is possible to evaluate companies that make different accounting choices. The key is using actual accounting footnote information provided throughout the text.
Students can undo the financial choices made, “get behind” the reported numbers, and use the footnotes to recast the choices and obtain a true comparison. Lubrizon/Cambrex—Students are presented with two companies that use two different depreciation methods and are shown how to compare them by analyzing the income tax footnote. United Airlines/Southwest Airlines—Students will learn to compare companies that use different fixed asset useful lives. Vacu-Dry Company—Students are shown how to transform LIFO numbers to a FIFO basis.

Contents

• The Economic and Institutional Setting for Financial Reporting
• Accrual Accounting and Income Determination
• Additional Topics in Income Determination
• Structure of the Balance Sheet and Statement of Cash Flows
• Essentials of Financial Statement Analysis
• The Role of Financial Information in Valuation
• The Role of Financial Information in Contracting
• Receivables
• Inventories
• Long-Lived Assets and Depreciation
• Financial Instruments as Liabilities
• Financial Reporting for Leases
• Income Tax Reporting
• Pensions and Postretirement Benefits
• Financial Reporting for Owners' Equity
• Intercorporate Equity Investments
• Statement of Cash Flows
• Overview of International Financial Reporting Differences and Inflation