The aim of Corporate Financial Accounting and Reporting is to help current and future managers gain a thorough understanding of companies' published financial reports. The book takes an international perspective: international accounting practices are described and illustrated throughout the text. The new edition has been thoroughly revised and updated to incorporate changes in International Accounting Standards.The text is divided into three parts. The first part covers the foundations of accounting and introduces students to the main financial statements. The second part looks at the components of financial statements in more depth while the third part explores how investors analyse financial statements. Key Features *Comprehensive coverage: includes some topics which do not usually appear in introductory texts and explains others in more detail than is customary. *Clarity: the book is suitable for a range of students from around the world and has been extensively class tested in Europe. *International approach: covers the most common accounting practices in the financial statements of both European and non-European companies as well as relevant EU and IAS requirements.New to second edition *Thoroughly revised to incorporate changes in IAS. *Legal, tax and regulatory frameworks have all been updated. *Boxed material is included which broadens the discussion in the text and also introduces students to ideas from recent academic research.Corporate Financial Accounting and Reporting is designed for international MBA programmes and specialist postgraduate programmes in international business/finance in Europe. It can also be used in international business programmes at the undergraduate level.About the authorTim Sutton is visiting Professor of Accounting at IESE Business School in Barcelona. He has held teaching appointments in European and North American business schools, including Kellogg in the USA and Insead in France. A chartered accountant, he has UK undergraduate and postgraduate degrees and a doctorate from the USA. His teaching experience has been across undergraduate, postgraduate and executive development programmes and he has published research in leading academic journals.

Table of Contents

1. Financial Accounting: An Overview PART I: FOUNDATIONS 2. The Balance Sheet: a Financial Picture of the Firm 3. The Income Statement 4. Accounting Records: Structure and Terminology 5. Accrual Adjustments & Financial Statement Preparation 6. The Annual Report and Accounts PART II: THE HOUSE OF ACCOUNTING 7. Key Conceptual Issues in Financial Accounting 8. Fixed Assets, Tangible and Intangible Section 1. Core Issues Section 2. Specialised Topics Section 3. Fixed Assets and Financial Statement Analysis 9. Inventories 10. Recognition of Revenue and Valuation of Receivables Section 1. Core Issues Section 2. Specialised Topics Section 3. Revenues, Receivables, & Financial Statement Analysis 11. Liabilities, On and Off Balance Sheet Section 1. General Issues Section 2. Long-Term Debt Section 3. Leasing Section 4. Liabilities and Financial Statement Analysis 12. Shareholders' Equity Section 1. Core Issues Section 2. Specialised Topics Section 3. Shareholders' Equity & Financial Statement Analysis 13. Financial Investments 14. Equity Accounting and Consolidations Section 1. Core Issues Section 2. Specialised Topics Section 3. Consolidated Accounts & Financial Statement Analysis 15. Transactions and Operations in Foreign Currencies 16. Employment Costs Section 1. General Issues Section 2. Specialised Topics Section 3. Employment Costs and Financial Analysis 17. Accounting for Corporate Income Taxes Section 1. Core Issues Section 2. Deferred Tax Accounting: Extensions Section 3. Corporate Income Taxes and Financial Analysis PART III: PERSPECTIVES 18. The Cash Flow Statement Revisited Section 1. Cash Flow Analysis: Benefits to Investors Section 2. Specialised Topics 19. Financial Statement Analysis: Basic Framework 20. Financial Statement Analysis: Extensions Section 1. Problem Areas in Financial Statement Analysis Section 2. Accounting Manipulation and its detection