Includes bibliographical references and index.

Assessing Financial Quality: An Organizing Theme -- A Historical Perspective -- Assessing Financial Quality: An Organizing Theme -- Analyzing Business Earnings I: The Income Statement -- Nonrecurring Items and Investment Analysis: Research Results -- Nonrecurring Items and Earnings Quality -- Locating Nonrecurring Items -- Nonrecurring Items in the Income Statement -- Nonrecurring Items in the Statement of Cash Flows -- Nonrecurring Items in the Inventory Disclosures of LIFO Firms -- Nonrecurring Items in the Income Tax Note -- Nonrecurring Items in the "Other Income (Expense)" Note -- Nonrecurring Items in Management's Discussion and Analysis -- Nonrecurring Items in Other Selected Notes -- Analyzing Business Earnings II: Calculating Sustainable Earnings Base -- Sustainable Earnings Base Worksheet -- Role of the Sustainable Earnings Base -- Application of the Sustainable Earnings Base Worksheet: Baker Hughes, Inc. -- Comments on the Baker Hughes Worksheet -- Sustainable Earnings Base Analysis in Company Annual Reports -- Income Taxes and Sustainable Earnings Base Analysis -- Topics in Revenue Recognition and Matching -- Foundations of Revenue Recognition and Matching -- Contract Reporting and Analysis -- Inventory Reporting and Analysis -- Interest Capitalization -- Income Tax Reporting and Analysis -- Shareholder and Tax Return Profit Differences -- Temporary Differences and Income Tax Reporting -- Permanent Differences and Income Tax Reporting -- Tax Reporting and Disclosure Requirements: A Complete Illustration -- Tax Disclosures and Financial Analysis -- Assessing the Realizability of Deferred Tax Assets -- Financial Derivatives -- Understanding Financial Derivatives -- Accounting Requirements for Financial Derivatives -- Disclosure Requirements for Financial Derivatives -- Analysis -- Foreign Exchange Reporting and Analysis -- Key Foreign Currency Background and Terminology -- Transaction Reporting and Analysis -- Translation Reporting and Analysis -- Investment Reporting and Analysis I: Debt and Equity Securities -- Investments in Debt and Equity Securities -- Accounting for Investments under the Equity Method -- Investment Reporting and Analysis II: Business Combinations -- The Structure of Business Combinations -- Accounting for Business Combinations -- Consolidated Financial Statements -- Special Topics in Accounting for Business Combinations -- Lease Reporting and Analysis -- Leasing Background -- Financial Reporting by Lessees -- Financial Analysis of Lessees -- Financial Reporting by Lessors -- Financial Analysis of Lessors -- Sale and Leaseback Transactions -- Reporting and Analysis of Pensions and Other Postretirement Benefits -- Pension Reporting and Analysis -- Pension Plans and Financial Analysis -- Reporting and Analysis of Other Postretirement Benefits (OPEB) -- Adjusted Balance Sheet Analysis -- Accounting Standards, Off-Balance-Sheet Assets, Liabilities, and Valuation Differences -- Comprehensive Revised-Balance-Sheet Analysis -- Identifying Sustainable Sources of Cash Flow -- Importance of Cash Flow Information -- What is Cash Flow? -- Identifying Sustainable Sources of Cash Flow.

Due to the intricacies of contemporary business transactions, the numerous standards issued by the FASB, and the many and varied accounting and disclosure practices and differences in terminology employed by reporting companies, financial statements and related disclosures have become very complex. This complexity can impede the work performed and the decisions reached by all users of financial statements, and especially the book's primary audience -- equity and credit analysts.