Table of Content

PART 1: THE FOUNDATION
1. Measurement of Profit and Financial Position
2. Measurement of Profit and Financial Position: II
3. Measurement of Profit and Financial Position: III


PART 2: CONCEPTS AND PRINCIPLES
4. Conceptual Framework of Financial Statements
5. Generally Accepted Accounting Principles


PART 3: ASSET VALUATION
6. Valuation of Tangible Fixed Assets
7. Depreciation on Fixed Assets
8. Valuation of Assets Under Finance Lease and Intangible Assets, Amortization and Asset Impairment
9. Valuation of Inventories
10. Valuation of Investments


PART 4: UNDERSTANDING CORPORATE FINANCIAL STATEMENTS AND OTHERFINANCIAL REPORTS INCLUDED IN ANNUAL REPORTS
11. Corporate Balance Sheet
12. Corporate Profit and Loss Account
13. Notes to the Accounts and Significant Accounting Policies
14. Understanding and Constructing Corporate Cash Flow Statement
15. Other Financial Reports: I
Auditors' Report and Directors' Report
16. Other Financial Reports: II
Corporate Governance Report


PART 5: FINANCIAL STATEMENT ANALYSIS
17. Quality of Earnings:
Window Dressing, Creative Financial Practices and Issues Related to Quality of Disclosures in Reported Earnings
18. Financial Statement Analysis and the Tool Kit of the Analyst: I
Multi-step, Horizontal,Vertical and Trend Analyses and Analytical Balance Sheet
19. Financial Statement Analysis and the Tool Kit of the Analyst: II
Earning per Share (EPS) Analysis
20. Financial Statement Analysis and the Tool Kit of the Analyst: III
Ratio Analysis
21. Analysis of Cash Flow Statement and Management Discussion and Analysis Report


PART 6: STRATEGIC AND INTEGRATED MANAGERIAL ANALYSIS OF CORPORATE FINANCIAL STATEMENTS AND OTHER FINANCIAL REPORTS OF NESTLÉ INDIA LTD. FORMING PART OF ITS ANNUAL REPORT
22. Model for Strategic and Integrated Managerial Financial Analysis of Annual Report of Nestlé India Ltd.
23. Strategic and Integrated Managerial Financial Analysis of Nestlé India Ltd. Based on the Model


PART 7: MORE ON FINANCIAL ANALYSIS
24. Innovative Techniques of Financial Statement Analysis
25. Analysis of Information from Sources Other than Annual Reports and Inter-company Comparison
26. Analysis of Group Performance:
Consolidated Financial Reporting


PART 8: CONTEMPORARY ISSUES IN FINANCIAL REPORTING AND ANALYSIS
27. Global Financial Reporting
28. Emerging Dimensions in Voluntary Financial Reporting:
Contemporary Analytical Techniques


APPENDICES

Salient Features

Discussion on convergence with international financial reporting standards. Though implementation of converged Indian standards has been deferred for the time being, key features thereof versus existing standards are explained in the text in various chapters for advance knowledge of students.

New vertical format of financial statements introduced with effect from the accounting periods starting 1 April 2011 included. Thus, corporate financial statements in the new format will be available only around June-July 2012. However, a thorough discussion on the new format with the restatement of 2010-11 old format statements of Reliance Industries provided in (new) Appendix 6 for advance knowledge of students.

Thorough revision, expansion, updating, enrichment, simplification and aesthetic improvement of the subject matter. All 62 corporate cases have been retained.

New pedagogical features introduced and clubbed with the existing ones.



Unique Features of the Book

Student-friendly. Written in a lecture mode and conversational style. Classroom simulative.
Case study-centric and analysis-oriented. A practical business oriented analysis keeping in mind the real-world financial practices of blue-chips corporates. Cases and financial practices of 62 leading companies, Indian as well as multinational, have been covered.
Enriched by my own industry experience, independent thinking and research on the subject, resulting into providing a practitioner's perspective and making the text thoroughly enjoyable.
Thorough discussion on Conceptual Framework of Financial Statements and contemporary issues such as Generally Accepted Accounting Principles (GAAPs), Valuation of Assets Under Finance Lease, tangible Assets, Amortization and Asset Impairment, Earnings Per Share(EPS) Analysis, Analysis of Group Performance: Consolidated Financial Reporting and Employee Stock Option Plans.
Accounting Standards interwoven with the text throughout the book, in a non-technical language, to the extent possible—instead of bundling them in a separate chapter—with the objective of making their understanding more and more contextual and enjoyable.
Thorough coverage of Significant Accounting Policies and Notes to Accounts, Auditors' Report, Directors' Report, Corporate Governance Report, Management Discussion and Analysis Report, Quality of Earnings, Window Dressing, and Information from Sources Other than Corporate Annual Reports.
A systematic, organized and integrated reading and understanding of financial statements and reports through the case of Nestle India Ltd., based on its external annual financial reporting, in Part 4 of the book.
A model developed for a strategic analysis and interpretation of the annual report comprising an integration of financial, qualitative and quantitative information, with the objective of giving recommendations to the management on strategic issues emanating out of analysis and suggesting more transparency in financial reporting.
Nestlé's full annual report analyzed as per the said model in Chapter 23 in Part 6. Special emphasis laid on contemporary financial issues such as Corporate Governance, Segment Reporting, Related Party Disclosures, Earnings Per Share, Impairment Loss, Accounting for Taxes on Income and Contingency Provision, and analyzed threadbare.
Innovative analytical techniques like Per Employee Analysis and Per Equity Share Analysis introduced.
Detailed discussion on Global Financial Reporting.
Coverage of emerging dimensions in financial reporting, that is, Value reportingTM comprising Intangible asset scorecard, Human resource accounting, Value-added statement, Brand valuation, Balance sheet including intangible assets, Economic Value-added (EVA®) statement, Enterprise value and Current-cost-adjusted financial statements.



Outstanding Pedagogical Features

The fourth edition of Financial Accounting for Management: An Analytical Perspective continues to focus on the analysis and interpretation of financial information for strategic decision making to enable students and managers to formulate business strategies for revenue enhancement, cost economies, efficiency improvements, restructuring of operations, and further expansion or diversification for creating and enhancing the shareholder's value. Though the book has MBA, MFC and MBE students as its primary audience, its practical orientation will be useful to managers in the corporate sector and students of CA, CWA, CS, CFA and CAIIB.