The authors chose the term ‘global’ for the book’s title to convey the idea that the book is truly global in its coverage. What distinguishes this book from others in financial accounting and corporate financial reporting is the seamless way it approaches the world’s two dominant accounting regimes: US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The tendency in the field is to present the material from a US GAAP perspective, with some discussion, usually at the end of the chapter, on financial reporting practices under IFRS and how they might differ from those of GAAP on the chapter topic. Or, when the book is written from an IFRS perspective, US GAAP is ignored entirely. The problem with this latter approach is that at least 40% of the world’s total stock market capitalization is accounted for by companies reporting under US GAAP. Meanwhile, more than half is accounted for by IFRS. Investors in the global capital markets cannot neglect either of these two approaches. The world will have one dominant accounting regime some day, but for the foreseeable future, we are left with two distinctive, though increasingly overlapping, sets of standards. The challenge is to integrate these approaches in such a way that critical differences are addressed, but in a way that is accessible to the reader.
Book Details:
- Author: David Young
- ISBN: 9781118470558
- Year Published: 2013
- Pages: 480
- BISAC: BUS001040, BUSINESS & ECONOMICS/Accounting / Managerial
About the Book and Topic:
The authors chose the term ‘global’ for the book’s title to convey the idea that the book is truly global in its coverage. What distinguishes this book from others in financial accounting and corporate financial reporting is the seamless way it approaches the world’s two dominant accounting regimes: US Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The tendency in the field is to present the material from a US GAAP perspective, with some discussion, usually at the end of the chapter, on financial reporting practices under IFRS and how they might differ from those of GAAP on the chapter topic. Or, when the book is written from an IFRS perspective, US GAAP is ignored entirely. The problem with this latter approach is that at least 40% of the world’s total stock market capitalization is accounted for by companies reporting under US GAAP. Meanwhile, more than half is accounted for by IFRS. Investors in the global capital markets cannot neglect either of these two approaches. The world will have one dominant accounting regime some day, but for the foreseeable future, we are left with two distinctive, though increasingly overlapping, sets of standards. The challenge is to integrate these approaches in such a way that critical differences are addressed, but in a way that is accessible to the reader.
Corporate Financial Reporting and Analysis: A Global Perspective/3e by David Young and Jacob Cohen is an introductory textbook on financial reporting for MBA students. Both authors are based at INSEAD Business School in France where they teach, amongst other courses, financial accounting. Young and Cohen wrote Corporate Financial Reporting and Analysis specifically for use on the INSEAD MBA progamme. They have self-published this book under the imprint of Rosenhurst Financial Press and are now looking for an international publisher to take on development and publication of the new edition. The current edition was published in 2011 so there is relatively little content that needs to be updated. However, the current edition contains no pedagogical features and case studies. There are three major objectives for the development of the new edition: firstly, the authors will add a pedagogical framework to the book including end of chapter questions, solutions and assignments; the authors will also develop a series of case studies for inclusion in the text; and an accompanying website will need to be developed containing additional materials for lecturers and students. Our reviewers have indicated that the development of these features will significantly enhance the potential for this title to be adopted at other universities. The book was written with the authors MBA students in mind. They are a large, highly diverse group representing as many as 80 different countries in a given year. Two-thirds of them speak some language other than English as their mother tongue. The authors aim, therefore, was to offer a text that was as global as the student body, with the same level of rigor one would find in the texts used at any of the world’s leading business schools. The authors chose to differentiate the book from its competitors in three ways. First, it was written in an accessible and concise fashion as a concession to the fact that many students are not native English speakers. The content, therefore, is lean. All excess verbiage has been purged. Second, the text offers many cases and problems that are not only original, but often unlike the materials one would find elsewhere. These materials are truly global, with cases found in North American, European and Asian settings. And third, it discusses IFRS and US GAAP in a seamless fashion. The book is neither IFRS-centric nor US GAAP-centric, but rather focuses on both regimes simultaneously.
Presents a clear and comprehensive model for the analysis and interpretation of financial statements linked to strategic analysis and sound principles of corporate finance. Considers the economic role of accounting and the importance of financial statements in global capital markets from a conceptual perspective Shows how financial statement analysis can be tied to business valuation. Offer an interesting and intuitive approach to corporate financial reporting under both IFRS and US GAAP. Combines the external view of the company with the managerial view of financial statements
About the Author
S. David Young is Professor of Accounting & Control at INSEAD, where he has been since 1989. He holds a PhD from the University of Virginia and is both a Certified Public Accountant (USA) and a Chartered Financial Analyst. His primary areas of expertise are corporate financial reporting and value based management, with works published in a wide variety of academic and professional journals, including Harvard Business Review, Journal of Investing and the Journal of Applied Corporate Finance. Professor Young is the author or co-author of several books, including EVA and Value Based Management: A Practical Guide to Implementation (McGraw-Hill, 2001), Profits You Can Trust: Spotting and Surviving Accounting Landmines (Financial Times Prentice Hall, 2003), and Attracting Investors: A Marketing Approach to Finding Funds for Your Business (John Wiley & Sons, 2004). His most recent book project is titled Blue Line Management: What Managing for Value Really Means, which should appear in the first half of 2012. Professor Young is also the recipient of several Outstanding Teaching Awards from the INSEAD MBA program, and the Distinguished Alumni Scholar Award from his undergraduate alma mater, The George Washington University. He has consulted extensively for companies in Europe, the U.S. and Asia, mainly on issues related to value based management and financial analysis. Professor Jake Cohen teaches courses in Financial and Managerial Accounting, Financial Statements Analysis, Mergers & Acquisitions, Corporate Restructurings, and Business Law at both INSEAD’s Singapore and Fontainebleau campuses. Prior to joining INSEAD, Professor Cohen was a Senior Teaching Fellow in the Accounting & Control group at the Harvard Business School, where he was a founding member and an accounting professor in the Analytics Program, and a Professor at the Harvard Extension School and Harvard Summer School in Cambridge Massachusetts. At Harvard, Professor Cohen was recognized for outstanding teaching. Prior to teaching at Harvard for four years, he taught at Syracuse University as an assistant professor and was named ‘Professor of the Year’ and was selected as the graduation keynote speaker for the school’s commencement ceremony. Professor Cohen currently sits on the Syracuse University Accounting Department’s Advisory Board. Professor Cohen received a Bachelors of Science degree in Accounting from Lehigh University, where he graduated with honors, a Master of Sciences degree in Accounting from Syracuse University, where he also graduated with honors, and a Juris Doctor degree in Law from Syracuse University, while on full academic scholarship. Professor Cohen also completed six executive certificates at the Harvard Business School in: Corporate Restructuring, Private Equity, Venture Capital, Financial Innovations, Valuation, and International Managerial Finance. Prior to his academic career, Professor Cohen worked as a tax accountant at KPMG LLP in Philadelphia and as a mergers & acquisition consultant for PricewaterhouseCoopers LLP in New York City.