This widely adopted, highly acclaimed text, now in its Fifth Edition, has proved to be an invaluable asset to the student community. It explains how to prepare, analyze, and interpret the information from financial statements. New and Distinctive Features of the Text • Banks: An entirely new chapter (Chapter 13) explains the financial statements of banks. It covers the effec This widely adopted, highly acclaimed text, now in its Fifth Edition, has proved to be an invaluable asset to the student community. It explains how to prepare, analyze, and interpret the information from financial statements. New and Distinctive Features of the Text • Banks: An entirely new chapter (Chapter 13) explains the financial statements of banks. It covers the effect of legal and regulatory requirements on the financial performance of banks. • Spotlight on Earnings Quality Analysis and Earnings Management: Intricate issues in understanding earnings quality and earnings management are explained with real-world examples. • Chapter Vignette: A tone-setting vignette at the start of every chapter enables the student to relate to the key issues covered in the chapter. • Emphasis on Thinking: Accounting involves making significant decisions at every level of management. This text provides many opportunities to students to think about the considerations that go into making accounting judgements. • New Cases: There are new cases on Tata Consultancy Services, Biocon, UBS, Reebok India, Nobles Crus, Essar Oil, HDFC, Kingfisher Airlines, Reliance Communications, and ICICI Bank. • Student-friendly Approach: Ideas are explained in a simple style using everyday language. No prior knowledge of business is assumed. Common doubts in understanding accounting are addressed. • New Material and Updates: New material has been added in many chapters. These include revenue recognition, pro forma financial measures, whistle-blowing, fraudster profile, cloud computing, statement of changes in equity, and management communications. The content has been updated to include the effect of the Companies Act 2013 and changes in Indian accounting standards and International Financial Reporting Standards. This book is recommended in Assam Institute of Management, Assam, North Eastern Hill University, Meghalaya, Biju Patnaik University of Technology (BPUT), Odisha for MBA. To access learning resources visit www.phindia.com/narayanaswamy5e Contents: Preface • Acknowledgements Introduction INTERVIEW WITH MR. N.R. NARAYANA MURTHY, INFOSYS LIMITED Part One: THE BASIC ACCOUNTING MODEL 1. Accounting, Markets, and Governance 2. Processing Transactions 3. Measuring Income 4. Accounting for Merchandising Transactions Comprehensive Case 1 INTERVIEW WITH MR. PRABHAKAR KALAVACHERLA, INTERNATIONAL ACCOUNTING STANDARDS BOARD Part Two: MEASURING AND REPORTING ASSETS, LIABILITIES AND EQUITY 5. Internal Control Systems, Cash, and Receivables 6. Inventories 7. Fixed Assets 8. Investments 9. Liabilities 10. Shareholders’ Equity Comprehensive Case 2 INTERVIEW WITH MR. P.R. RAMESH, DELOITTE Part Three: ANALYZING AND INTERPRETING FINANCIAL STATEMENTS 11. Analyzing Financial Statements: Statement of Profit and Loss and Balance Sheet 12. Analyzing Financial Statements: Cash Flow Statement Comprehensive Case 3 13. Analyzing Financial Statements: Banks Comprehensive Case 4 INTERVIEW WITH PROFESSOR SHYAM SUNDER, YALE UNIVERSITY Appendix A Hindustan Unilever Limited Consolidated Financial Statements Appendix B Time Value of Money Appendix C Summary of Formulas Glossary • Answers Check for Selected Problems • Index Solution Manual is available for adopting faculty.