Lawyers' Use of Financial Statements-2010

Current to: March 2010

This book is essential for: corporate/commercial lawyers and business litigators at all levels of experience; they will also be of interest to family law practitioners. 

Every corporate/commercial lawyer and business litigator must be able to understand and use financial statements to serve business clients more effectively. In this book, you will learn about basic accounting concepts and what financial statements reveal about a company, including its performance and viability. You will also learn what financial statements do not tell you. Primarily through the use of examples, you will learn how to analyze financial statements and how financial statements can be falsified. Basic valuation concepts are also presented, including a discussion on why the financial statements of a company may not be indicative of its fair market value.

CONTENTS

• reading and understanding financial statements: basic terms & definitions, objectives, qualitative characteristics, GAAP and the accrual basics of accounting
  
• basic financial statement ratio analysis: liquidity ratios, solvency ratios, profitability ratios, efficiency ratios, key issues re: ratio analysis
  
• public accountant reports: notice to reader, review engagement report, auditor’s report
  
• valuing the business: purchase and sale considerations, valuations methods, liquidation method, example valuation
  
• example financial statements