preface

PART 1.
Understanding Financial Statements

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Things to Know Before Reading Financial Statements
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001 Financial Statements: Who Needs Them?
002 What are the standards for preparing financial statements?
003 How to prepare financial statements?

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〈First Yard〉 Financial Statement Element 1/Statement of Financial Position
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004 Principles for preparing and reading financial statements
005 Understanding Balance Sheet Assets
006 Mastering Current Assets ① Current Assets
007 Mastering Current Assets ② Inventory Assets
008 Mastering Illiquid Assets ① Investment Assets
009 Mastering Non-Current Assets ② Tangible Assets
010 Mastering Non-Current Assets ③ Intangible Assets and Other Non-Current Assets
011 Understanding Balance Sheet Liabilities
012 Understanding Equity in the Balance Sheet
013 Understanding the Retained Earnings Disposition Statement

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〈Second Yard〉 2 Elements of Financial Statements/Income Statement
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014 Principles for Preparing and Reading an Income Statement
015 Gross profit, operating profit
016 Profit from continuing operations, profit from discontinued operations, net income for the period

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〈Third Yard〉 Three Elements of Financial Statements/Cash Flow Statement
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017 Understanding the Cash Flow Statement

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〈Fourth Yard〉 Four Elements of Financial Statements/Statement of Changes in Equity
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018 Understanding the Statement of Changes in Equity

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〈Fifth Yard〉 Five Elements of Financial Statements/Notes to Financial Statements
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019 Understanding the Notes to Financial Statements

PART 2.
Analyzing financial statements

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〈Sixth Yard〉 Financial Statements through Real-World Case Studies
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020 Analyzing Financial Statements
021 Good Companies and Financial Statement Analysis
022 What kind of company is it?
023 How profitable is the company?
024 How is the company's safety?
025 How active is the company?
026 What is the company's growth potential?
027 Comparing Corporate Value and Market Value on Financial Statements
028 Does this company adhere to social ethics standards?

supplement

The fifth revision proves readers' trust.
Established as a leading textbook for learning financial statements!

Since its first publication in 2007, 『Follow Financial Statements』 has been published in its fifth revised edition thanks to the continued love of readers.
In this revised edition, the content has been supplemented and updated in accordance with the changed accounting standards, and in particular, the parts for practitioners (Part 1 to Part 5) and the part for investors (Part 6) have been separated so that each person can choose and study according to their own needs.


Above all, by including the latest financial statements of Samsung Electronics and Naver, we have provided practice in comparing them with the financial statements of domestic companies in the same industry and global competitors (Apple, Google), allowing learners to learn and apply financial statement analysis methods on their own.
Additionally, for stock investors, this book is designed to be of practical help by showing how to use which account items in financial statements to evaluate the profitability, stability, and activity of a company, which are the most important factors to consider when looking at financial statements.
Accordingly, this revised edition will become the representative textbook on financial statements, covering everything from basic theory to practice and investors in one volume.

Finally, to help beginners easily access financial statements, we included [short stories] in each chapter to break down the barrier to understanding financial statements.
The self-diagnosis [TEST] that checks your skills at the end of each chapter further enhances your learning ability, allowing learners to progress with a sense of accomplishment.

Investors, test takers, practitioners, etc… … .

Provides the ability to analyze financial statements to suit your needs!

The numbers in financial statements are just numbers in themselves.
Only when these numbers are compared and analyzed with other numbers can we obtain living investment or management information.
This book explains how to view a company's financial performance at a glance, so that it can be actively utilized, especially for stock investments.
Those who know how to interpret financial statements will have an advantage in various aspects of economic life.
It will be of practical help to investors who require accurate and up-to-date information, as well as accounting exam candidates and practitioners involved in corporate financial statements.