Business Analysis and Valuation

Business Analysis and Valuation teaches students how to use financial statement information to assess a firm's financial performance, value, and creditworthiness. This new IFRS edition has been produced by Erik Peek and amongst other things converts the financial statements in Palepu to a UK/European IFRS base. The book is primarily aimed at Masters and upper-level undergraduate programs in business and requires some prior knowledge of financial accounting, finance, and strategy. The text builds a bridge between accounting and finance, is thus accessible to both finance students and accounting students, and is primarily used in Financial Statement Analysis courses (as opposed to specialist accounting or finance courses). The unique characteristics of the book are the large number of real-life cases used to illustrate the theory; the step-by-step analysis methodology and the extensive discussion of strategy analysis. The distinct structure of the book, based on a business analysis before financial analysis, ensures that financial analysis is approached in a realistic real-world manner and is driven by strategy. The main driver behind the need for a European revision of PHB is the recent adoption of International Financial Reporting Standards (IFRS) in Europe. Currently, all chapters about accounting issues, all cases, and all examples in the book are based on US Generally Accepted Accounting Principles (US GAAP). Much of the international accounting literature agrees that national accounting regulation is not the only determinant of accounting practices. Specifically, after IFRS adoption, European differences in institutions and financial systems (such as the role of banks and taxation) remain to influence European accounting practices.