Accounting and Business Valuation Methods - 1st Edition - ISBN: 9780750684682, 9780080554327

Accounting and Business Valuation Methods

1st Edition

how to interpret IFRS accounts

Authors: Malcolm Howard
eBook ISBN: 9780080554327
Paperback ISBN: 9780750684682
Imprint: CIMA Publishing
Published Date: 14th November 2007
Page Count: 312
Sales tax will be calculated at check-out Price includes VAT/GST
Price includes VAT/GST

Institutional Access

Secure Checkout

Personal information is secured with SSL technology.

Free Shipping

Free global shipping
No minimum order.


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.

Key Features

  • examines the difference between mandatory and optional reports
  • explains how to assess the strength of a companys balance sheet
  • looks at how to assess whether or not the market value of a particular company is justified


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

Table of Contents

How accurate are the accounts?; Basic principles of accounting; Accounting standards; Industry standards; The Annual Report; Responsibilities of those signing the Annual Report; Key words and limitations; The principle of judgement; What makes a director act imprudently; Clues to assess accuracy; The basic tools of analysis; Reviewing market valuations and market to book ratio; Assessing the Balance Sheet; Cash is king ? funds generation; Is the company making good use of its assets; Ratio analysis (performance, asset management, structure and investor ratios); Investment appraisal procedures; Valuing companies; Systematic and unsystematic risk; Portfolio theory and diversification; The Capital Asset Pricing Model; Shortcomings of accepted economic theory; Problems associated with traditional methods of assessment ? horizontal and vertical analysis; The irrationality of stock markets; ; The human factor; Income v growth; Valuation techniques for manufacturing and service companies; How to calculate the growth built into a share price; How to assess unsystematic risk; Case Studies (each point is illustrated by a particular company); Understanding the industry; Benefiting from a cautious board; A classic income share; The cost of an imprudent board; Price paid for excessive growth strategies; Biting off more than one can chew; Dramatic effect of stalled growth; Overstated assets; Profits without cash; Why it is usually better to be acquired.


No. of pages:
© CIMA Publishing 2007
CIMA Publishing
eBook ISBN:
Paperback ISBN:

About the Author

Malcolm Howard

Affiliations and Expertise

Lecturer in Finance

Ratings and Reviews