Rodgers Commercial Awareness and Business Decision Making Skills

How to understand and analyse company financial information
1. Auflage 2007
ISBN: 978-0-08-054517-2
Verlag: Elsevier Science & Techn.
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 272 Seiten, Web PDF

This book is designed to act as a financial statement phrase book and dictionary rolled into one. It will enable those new to the financial world to draw meaning from the wealth of information contained within financial documents that were previously considered out of bounds.

Furthermore, although the pages within this book will be an invaluable springboard to those starting out in the world of accountancy, its promary aim is to enable commercial managers working within every facet of a business to meet clearly defined objectives.

It will enable these professionals to take commercial documents and visualise how they interact with the work of an accountant, explaining why every board of management appears to focus on financial data.

* Explains the impact of choices in accounting treatment upon the financial data an entity produces
* Uses tools to complement the financial data, encourages asking perceptive questions that elicit answer that would not otherwise be made available
* Adds value within a commercial business environment

Autoren/Hrsg.

Rodgers, Paul

Inhaltsverzeichnis

1;Cover;1
2;Table of Contents;6
3;Introduction to the book;11
4;Chapter 1 Why do Financial Statements Exist?;14
4.1;The expectation gap – do not believe first impressions;16
4.2;The division of ownership and hands-on management;17
4.3;Management accounts vs. financial statements;19
4.4;The stakeholder concept;20
4.5;The owner-managed business;22
4.6;So much more than numbers;22
4.7;The things every manager must know;25
5;Chapter 2 How are Commercial Transactions Captured?;26
5.1;The corporate paper trail;28
5.2;Capturing the data;29
5.3;The accounting equation;33
5.4;The things every manager must know;37
6;Chapter 3 The Balance Sheet: A Freeze Frame & The Concept of Articulation Using the Profit and Loss Account;38
6.1;Linking the separate legal entity concept to the balance sheet;40
6.2;The purpose of the balance sheet;43
6.3;The purpose of the profit and loss account (also referred to as the income statement);44
6.4;The point of articulation;47
6.5;The real world;50
6.6;The things every manager must know;50
7;Chapter 4 A Brief Look at the Accountants’ Phrase Book;52
7.1;Understanding the label;54
7.2;Debits and credits;54
7.3;Confusion arising from day-to-day usage;56
7.4;Mr Big Ltd revisted;57
7.5;The things every manager must know;60
8;Chapter 5 Cash and Corporate Survival;62
8.1;Making profit does not mean you can pay the bills;64
8.2;Cash accounting vs. accruals accounting;65
8.3;Accruals and prepayments;66
8.4;Satisfying the needs of stakeholders who want to know about both profit and cash;69
8.5;Formalizing cash flow presentation;70
8.6;The things every manager must know;73
9;Chapter 6 The Impact of International Harmonization;74
9.1;The concept of a single GAAP;76
9.2;What is the timetable for change?;76
9.3;Presentational differences;77
9.4;The things every manager must know;84
10;Chapter 7 The Managers’ Analytical Toolkit;86
10.1;The lull before the storm;88
10.2;Commercial knowledge;88
10.3;Qualitative skills;90
10.4;Quantitative measures;90
10.5;The things every manager must know;101
11;Chapter 8 The Application of Knowledge;102
11.1;A basic approach to interpreting the numbers;104
11.2;Operational issues;104
11.3;Do not ignore the obvious;106
11.4;Case study;107
11.5;The things every manager must know;119
12;Chapter 9 Investor Analysis;120
12.1;The investment decision and why it matters;122
12.2;Earnings per share;122
12.3;The price–earnings ratio;125
12.4;Dividend yields;126
12.5;Other useful indicators;128
12.6;The things every manager must know;129
13;Chapter 10 Cash Ratios;130
13.1;The ability to pay;132
13.2;The cash recovery rate;132
13.3;Cash return on capital employed;132
13.4;Cash interest cover;133
13.5;Cash dividend cover;133
13.6;Looking beyond the financial pages;133
13.7;The things every manager must know;134
14;Chapter 11 Getting to Grips with Accounting Choice;136
14.1;Why choice matters;138
14.2;The origin of choice;140
14.3;What has this business done?;141
14.4;The things every manager must know;144
15;Chapter 12 Tangible Fixed Assets;146
15.1;What constitutes a tangible fixed asset?;148
15.2;Fixed or not?;148
15.3;Identifying cost;149
15.4;The concept of depreciation;150
15.5;Depreciation mechanics;151
15.6;Depreciation – further choice;152
15.7;Depreciation ratios;155
15.8;Revaluation;155
15.9;The mechanics of revaluation;157
15.10;Historic cost vs. current cost;162
15.11;Impairment – taking bad news on the chin;164
15.12;Capitalization vs. expensing;168
15.13;The costs of financing construction;171
15.14;The things every manager must know;171
16;Chapter 13 Hidden Value – Intangible Assets;174
16.1;What constitutes an intangible asset?;176
16.2;Goodwill;177
16.3;Negative goodwill;180
16.4;Research and development;180
16.5;Other intangibles;182
16.6;The things every manager must know;186
17;Chapter 14 An Introduction to Investments;188
17.1;Parent company vs. group;190
17.2;What constitutes an investment?;191
17.3;The things every manager must know;193
18;Chapter 15 Leasing and the Concept of Commercial Substance Prevailing over Legal form;194
18.1;Why choose to lease an asset?;196
18.2;The concept of commercial substance prevailing over legal form;196
18.3;Differentiating operating and finance leases;197
18.4;The transfer of risks and rewards;198
18.5;Accounting consequences of the lease decision;198
18.6;Analytical consequences of the lease decision;202
18.7;Off-balance-sheet finance;203
18.8;The things every manager must know;204
19;Chapter 16 Current Assets;206
19.1;A quick recap;208
19.2;Stock valuation and its impact on financial indicators;208
19.3;Long-term contracts – an overview;212
19.4;Trade and other debtors;215
19.5;Bank and cash;216
19.6;The things every manager must know;217
20;Chapter 17 Current Liabilities;218
20.1;Beyond the trade creditor/payable;220
20.2;Other creditors/payables;221
20.3;UK corporate taxation – a snapshot;222
20.4;What is deferred income?;222
20.5;Long-term contracts revisited;223
20.6;Have the days of big bath provisions really died?;224
20.7;The future of provisioning – a technical moment;228
20.8;Financial instruments – a warning shot;228
20.9;The things every manager must know;228
21;Chapter 18 Company Financing;230
21.1;Debt vs. equity;232
21.2;Preference share capital;233
21.3;So much more than a loan;234
21.4;Welcome to the new world of financial instruments;235
21.5;Are the new rules necessary?;238
21.6;Convertible debt;239
21.7;The things every manager must know;240
22;Chapter 19 Further Clues about the Future of the Business;242
22.1;Contingencies;244
22.2;Post-balance-sheet events;245
22.3;Capital commitments;247
22.4;Multi-year analysis;249
22.5;Segmental analysis;252
22.6;The things every manager must know;258
23;Chapter 20 Things You Always Wanted to Know But Were Afraid to Ask;260
23.1;Related parties;262
23.2;Deferred taxation and associated tax issues;266
23.3;The things every manager must know;269
24;Chapter 21 Group Financial Statements – The Basics;270
24.1;Problems associated with the veil of incorporation;272
24.2;Commercial substance prevails again;273
24.3;Gaining control;274
24.4;Influence only;275
24.5;The things every manager must know;275
25;Chapter 22 Putting your Skills to Use;278
25.1;The financial guru is born!;280
25.2;A systematic approach;280
25.3;The things every manager must know;282
26;Index;284