Customer Reviews

Guide to Financial Reporting and Analysis

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This book provides the most clear and thorough guide to understanding financial statements I have seen. This is not for the faint of heart; understanding financial reporting at this level requires persistence and a willingness to work through some complex issues. However, at the end of the day Comiskey and Mulford leave diligent readers with the analytical tools to see beyond accounting conventions and grasp the underlying economic reality of a firm's performance.

The value of the book is best illustrated in the numerous examples the authors provide using financial statements and footnotes from public companies. Along the way they deal with some timely issues and Comiskey and Mulford should be applauded for keeping their work relevant by staying current on continuously evolving areas such as accounting for derivatives and issues surrounding technology companies.

Have you ever wondered why the accountants' eyes glow when they see a financial statement? They're not wierd (after all), they're just wired differently. This book will change the way you feel about financial statements. I no longer am scared of deferred income taxes, LIFO reserves, restructuring charges, footnotes, and all those irritating financial details which I routinely ignored and hoped did not matter. I'm re-wired for my own good.

This book is very similar to the previous book (Financial Warnings) by both authors. It is more indepth than its previous predesessor. I find the Financial Warnings to be better because it has more examples. (May be since I know the content of the previous book, this is like redundant.) Anyway, I would recommend you to buy this book.

The authors did a very good job explaining the issues that affects earnings quality and financial stability. Note that this book is not an accounting book that explains the complex accounting rules. The book only points at the aspects that are relevant to equity and credit analysts.

The book is about 600 pages which is intimidating especially considering the subject is accounting. However, after I started reading it I found it very easy to read. The chapters are very well organized and the text is written in clear plain english. No long sentences which tires the reader. Also authors were successfull keeping the subject interesting so you can read it without getting bored. I especially liked the chapters on deferred taxes and accounting for leases.

The only frustrating part about the book is that it is almost a decade old. Since 1998 a lot changed in financial reporting. The authors should write a second edition.

I recommend this book to anyone who is serious about financial statement analysis (wheather you are a stock investor or an analyst). Also note that the subjects are considered advanced accounting. Those who do not have a basic understanding of accounting will find it hard to follow the book since authors did not spend time to explain concepts for a novice reader.

The text gives superb explanatory information on a variety of financial accounting topics and is structured in a way that provides easy memory of the material. The information is backed by references that give invaluable reading beyond the text. Exceptional work!