By
Malcolm Howard, Lecturer in Finance
Description
This book is intended to appeal to junior accountants and entrepreneurs who need guidance and practical analytical tools to enable them
to develop business plans, raise capital and assess risk. Readers can initiate their own business plans by copying over 200 lines of
formulae that create a 5 year plan that includes an earnings statement (or profit and loss account), balance sheet and cash flow statement.
It will also appeal to students taking accounting and finance modules that cover basic accounting techniques, ratio analysis, investment
appraisal, as well as company valuation and share valuation. The book demonstrates with four case studies where practice often differs
with theory.
Chapter 1 covers basic book-keeping, showing how accounts are reconciled and controlled covering topics such as the working
capital cycle and negotiating techniques. Chapter 2 deals with basic business planning and how to use ratio analysis (performance, asset
management, structure, and investment ratios) to assess company performance. Chapter 3 explains that published accounts are based on
a series of judgements and the effect the relatively new international financial reporting standards and legislation such as the Sarbanes-Oxley
Act is having on corporate governance. Chapter 4 covers risk assessment and valuing companies. Four case studies bring everything together;
how investment trusts are valued, the effect of restructuring on share prices, the difference between serious profit warnings and mere
compliance with regulation and hostile takeovers.
Via a thorough analysis of published accounts this book will show readers how
to: distinguish between mandatory and optional reports; assess the strength of a company’s balance sheet; assess the risk factors associated
with investment; assess whether or not the market value of a particular company is justified.
Audience:
Junior Accountants; finance & accounting students taking modules that cover basic accounting techniques such as ratio analysis.
Budding entrepreneurs who want to avoid the traps that await their fledgling businesses
