Knowledge creation : going beyond published financial information / Waymond Rodgers.

Format:

Book

Author/Creator:

Rodgers, Waymond, author.

Series:

Business, technology and finance.

Business, Technology and Finance

Language:

English

Subjects (All):

Corporations--Finance.

Corporations.

Financial statements.

Decision making.

Managerial accounting.

Physical Description:

1 online resource (394 p.)

Place of Publication:

New York : Nova Publishers, 2016.

Summary:

Financial statement analysis involves an understanding of an entity by applying analytical techniques to its accounting numbers. However, financial statement analyses are going through a transformation similar to the manufacturing age changing to information centered orientation. That is, it is no longer sufficient to understand the tools for analyzing financial accounting information. Other types of relevant information that are not directly captured by financial statement information have a profound effect on creditors, investors, reporting bureaus, governmental agencies and regulators. This text differs from other financial statement textbooks in that it not only takes the traditional analysis of financial information, but also management and economic information that is not directly measurable or easily derived from financial accounting reports. Further, this textbook emphasizes the measurement and valuation of brand, sustainability, ethical systems and trusts systems. Moreover, this text also differs in that it provides a modeling viewpoint of information analysis linked with decision makers' perception and judgments before arriving at a decision. The modeling perspective enhances financial statement analysis by: 1. Including not only financial information, but also management and economic information 2. Combining the passive tools used in investment and financial analysis (e.g., ratio analysis) with individual's framing of the problem (perception) and analysis (judgment) before arriving at a decision 3. Viewing information analysis through a camera lens reinforced by a basic two stage modeling approach in order to support decisions regarding a particular course of action to implement. Further, this text transforms what other financial statement analysis textbooks emphasize as an "input-output and static analysis" approach to a more "dynamic and process" approach. In addition, this textbook divulges from a "financial analysis" viewpoint to a "knowledge creation" perspective. This new "knowledge creation" perspective is intended for upper level undergraduates and graduate students, such as accounting, economic, finance, information systems, marketing, organizational behavior students, and psychology and sociology students. In addition, this book can be beneficial to government, non-profit and business oriented individuals.

Contents:

Contents; Preface; Acknowledgments; Changing Face of Financial Analysis; Outline of the Book; Perception; Information; Judgment; Financial and Non-Financial Environment; Internal versus External Users of Information; The Basic Needs of Financial Information Users; Need for General Purpose Financial Statements; Review of Financial Statements; Objectives of Financial Accounting; 1. Primary Qualities; 2. Enhancing Qualities; Comparability; Verifiability; Timeliness; Understandability; User-Specific Factors; Qualitative Characteristics of Useful Financial Information; Relevance; Materiality

Faithful RepresentationEnhancing Qualitative Characteristics; Comparability; Verifiability; Timeliness; Understandability; Applying the Enhancing Qualitative Characteristics; The Cost Constraint on Useful Financial Reporting; Limitations of Financial Statement Information; Beyond Traditional Financial Analysis Perspective; The Rise of Knowledge-Based Assets (Intangible Assets); Hypothetical Example: "Very Good; Vitamins Distributors"; Capitalization Method; Average Cash Flow; What Is the Value of Knowledge-Based Assets,; Not Yet Released?; Ethical Considerations; Fraud Issues

Trust RelationshipsSustainability Issues; Conclusion; References; Financial Statement Analysis; Horizontal Analysis or Trend Analysis; Vertical Analysis; Income Statement; Ratios Analysis; Financial Statements; Balance Sheet; Sample Balance Sheet; Notes to Financial Statements; Income statement; Earnings per Share or EPS; Sample Income Statement; Cash Flow Statements; Operating Activities; Investing Activities; Financing Activities; Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A); Statement of Owners' Equity (Statement of Retained Earnings)

Tools for Financial Statements AnalysisFundamental Analysis; Technical Analysis; Efficient Market Hypothesis; Ratio Analysis; Liquidity Ratios; Activity Ratios; Accounts Receivable Turnover Ratio; Inventory Turnover Ratio; Accounts Payable Turnover Ratio; Profitability Ratios; Gross Margin Ratio; Net Profit Margin Ratio; Return on Assets Ratio; Return on Investment (ROI) Ratio; Leverage Ratios; Stockholders' Equity Ratio; Market Value Ratios; Price-Earnings Ratio (P/E ratio); Market-to-Book Ratio; Composition of Return on Equity using; the DuPont Model; Net Profit Margin (Profitability)

2.2.4. Weaknesses and Strengths

Notes:

Description based upon print version of record.

Includes bibliographical references at the end of each chapters and index.

Description based on print version record.

ISBN:

1-63485-290-7