A Global Perspective
S. David Young is Professor of Accounting & Control at INSEAD, where he has been since 1989. He holds a PhD from the University of Virginia and is both a Certified Public Accountant (USA) and a Chartered Financial Analyst. His primary areas of expertise are corporate financial reporting and value based management, with works published in a wide variety of academic and professional journals, including Harvard Business Review, Journal of Investing and the Journal of Applied Corporate Finance. Professor Young is the author or co-author of several books, including EVA and Value Based Management: A Practical Guide to Implementation (McGraw-Hill, 2001), Profits You Can Trust: Spotting and Surviving Accounting Landmines (Financial Times Prentice Hall, 2003), and Attracting Investors: A Marketing Approach to Finding Funds for Your Business (John Wiley & Sons, 2004). His most recent book project is titled Blue Line Management: What Managing for Value Really Means, which should appear in the first half of 2012. Professor Young is also the recipient of several Outstanding Teaching Awards from the INSEAD MBA program, and the Distinguished Alumni Scholar Award from his undergraduate alma mater, The George Washington University. He has consulted extensively for companies in Europe, the U.S. and Asia, mainly on issues related to value based management and financial analysis. Professor Jake Cohen teaches courses in Financial and Managerial Accounting, Financial Statements Analysis, Mergers & Acquisitions, Corporate Restructurings, and Business Law at both INSEAD's Singapore and Fontainebleau campuses. Prior to joining INSEAD, Professor Cohen was a Senior Teaching Fellow in the Accounting & Control group at the Harvard Business School, where he was a founding member and an accounting professor in the Analytics Program, and a Professor at the Harvard Extension School and Harvard Summer School in Cambridge Massachusetts. At Harvard, Professor Cohen was recognized for outstanding teaching. Prior to teaching at Harvard for four years, he taught at Syracuse University as an assistant professor and was named 'Professor of the Year' and was selected as the graduation keynote speaker for the school's commencement ceremony. Professor Cohen currently sits on the Syracuse University Accounting Department's Advisory Board. Professor Cohen received a Bachelors of Science degree in Accounting from Lehigh University, where he graduated with honors, a Master of Sciences degree in Accounting from Syracuse University, where he also graduated with honors, and a Juris Doctor degree in Law from Syracuse University, while on full academic scholarship. Professor Cohen also completed six executive certificates at the Harvard Business School in: Corporate Restructuring, Private Equity, Venture Capital, Financial Innovations, Valuation, and International Managerial Finance. Prior to his academic career, Professor Cohen worked as a tax accountant at KPMG LLP in Philadelphia and as a mergers & acquisition consultant for PricewaterhouseCoopers LLP in New York City.
About the Authors xvii 1 An Introduction to Financial Statements 1 2 The Balance Sheet and Income Statement 31 3 A Brief Overview of GAAP and IFRS: the Framework for Financial Accounting 56 4 Revenue Recognition 64 5 The Statement of Cash Flows 96 6 Financial Statement Analysis 149 7 Business Valuation and Financial Statement Analysis 200 8 Accounting for Receivables and Bad Debts 218 9 Accounting for Inventory 252 10 Accounting for Property, Plant and Equipment 275 11 Leases and Off-Balance-Sheet Debt 298 12 Accounting for Bonds 312 13 Provisions and Contingencies 327 14 Accounting for Pensions 346 15 Accounting for Income Tax 363 16 Accounting for Shareholders Equity 386 17 Marketable Securities and Investments 411 18 Accounting for Mergers and Acquisitions 434 Appendix Tables for Present Value and Future Value Factors 449 Index 455