Author(s)
Bethany Hearn, CPA/ABV/CFF, ASA
Charles Wilhoite, CPA/ABV/CFF, CMA, ASA, CFM

Publisher:
AICPA

    Credit Info
  • NASBA Field of Study

  • Format

    On demand

  • Level

  • CPE Credit

    2

  • Course acronym

  • Prerequisites

  • Course duration

    1 Hour and 50 Minutes

The Truth is in the Numbers – Financial Statement Analysis for Valuation Purposes

Category:
Financial statement analysis is a fundamental step in the business valuation process. Developing an understanding of the historical (and prospective) financial position and operating results of the subject company within the context of actual (and expected) industry and economic conditions provides the perspective required to establish a reasonable economic outlook for the subject company. This economic outlook ultimately will serve as the foundation for the valuation of the subject company.
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Topics discussed

Developing a financial Understanding
Adjustments
Financial and Operating Trends

Learning objectives

• Develop a clear financial understanding of the subject company
• Analyze and understand internal (i.e., company-specific) financial and operating trends
• Analyze and understand external (i.e., subject company relative to industry) financial and operating trends
• Establish a basis for potential “normalizing” adjustments to reported historical operating results
• Establish a basis for concluding that the subject company’s expected economic performance reasonably can be relied upon to complete the valuation

Who will it benefit?

Participants wanting a firm understanding of the key steps to undertake for the purpose of completing a thorough financial statement analysis.