Welcome to Finance Train’s ebook on ‘Financial Report and Analysis’. This ebook will teach you the general principles of financial reporting and the techniques used for analyzing financial reports.
We will begin by understanding the role of financial reporting and the various financial information analysts use to analyze the financial performance of a company. We will also discuss the general framework for financial statement analysis. Next, we discuss financial reporting standards such as US GAAP and IFRS. All companies need to abide by these standards while preparing their financial reports.
The next chapter teaches about how an analyst can use the financial reports to perform detailed financial analysis of a company. This includes in-depth financial ratio analysis.
The next three chapters cover the financial reporting for specific categories of assets and liabilities including inventories, long-lived assets, income taxes, non-current liabilities.
The final chapter throws some light on the financial reporting quality and discusses the red flags and accounting warning signals that an analyst can use to gauge the quality of financial reporting.