How to Read a Financial Report

The updated new edition of the comprehensive guide to reading and understanding financial reports

Financial reports are used to provide a range of vital information, including an organization’s cash flow, financial condition, and profit performance (aka The Big Three Financial Statements). Financial statements are often complex and extremely difficult to understand for anyone other than accounting and finance professionals. How to Read a Financial Report enablesinvestors, lenders, business leaders, analysts, and managers to read, analyze, and interpret financial accounting reports. Designed specifically for non-specialists, this reader-friendly resource covers the fundamentals of financial reporting in jargon-free English. Topics such as sales revenue & recognition, costs of goods sold, sources & uses of capital/cash, non-cash expenses (e.g., depreciation expense), income tax obligations, understanding profits & financial stability, and financial statement ratios & analysis are covered throughout the book.

Now in its ninth edition, this bestselling guide has been thoroughly revised to reflect changes in accounting and financial reporting rules, current practices, and recent trends. New and expanded content explains managing cash flow, illustrates the deceitful misrepresentation of profits in some financial reports (aka Financial Engineering), and more. Further, end-of-chapter activities help readers learn the intricacies of the balance sheet and cash flow statement, while updated sections address shifts in regulatory standards. Written by two highly experienced experts in financial accounting, this resource: 

• Enables readers to cut through the noise and focus on what financial reports and financial statements are really saying about a company
• Clarifies commonly misunderstood aspects of financial reporting and how companies can “financially engineer” operating results
• Offers comprehensive, step-by-step guidance on analyzing financial reports
• Provides numerous examples and explanations of various types of financial reports and analysis tools

JOHN A. TRACY is a professor of accounting, emeritus, at the University of Colorado at Boulder. Before his 35-year tenure at Boulder, he was on the business faculty at the University of California, Berkeley. John is the author of several best-selling books on accounting and finance.

TAGE C. TRACY is the founder of TMK and Associates, a financial consulting firm focused on providing executive-level accounting, financial, and business management support. Tage has coauthored a total of six books with his father, John Tracy.

THE NON-ACCOUNTANT'S GUIDE TO UNDERSTANDING FINANCIAL DATA Financial statements are full of vital information about a company's current health and future prospects. Managers, investors, and others need to understand these reports, which sometimes seem to be written in a foreign language that only accountants can speak. Now in its ninth edition, How to Read a Financial Report continues its 40-year tradition of breaking through that language barrier and providing a plain-English user's guide to financial reports. This edition reflects recent changes to accounting rules, maintaining its classic focus on helping readers interpret the interconnections among disparate pieces of financial data.

This item is eligible for free returns within 30 days of delivery. See our returns policy for further details.