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Principles of managerial finance arab world edition 1st ...

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Gitman • principles of managerial finance, arab world edition. statement of retained earnings—this statement reconciles the net income earned during the ...
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Chapter 2 Financial Statements and AnalysisChapter 2Financial Statements and Analysis Instructor’s ResourcesOverviewThis chapter examines four key components of the stockholders’ report: the income statement (nowStatement of Comprehensive Income as per IFRS), balance sheet (now Statement of Financial Position asper IFRS), statement of retained earnings, and the statement of cash flows. On the income statement andbalance sheet, the major accounts/balances are reviewed for the student. The rules for consolidating acompany’s foreign and domestic financial statements (IAS 27 in Arab context) (FASB No. 52 in UScontext) are described in IFRS and US GAAP respectively. Following the financial statement coverage thechapter covers the evaluation of financial statements using the technique of ratio analysis. Ratio analysis isused by prospective shareholders, creditors, and the firm’s own management to measure the firm’soperating and financial health. Three types of comparative analysis are defin...