Financial Analysis in Hong Kong
Qualitative Examination of Financial Statements (2nd edition) for CEOs and Board Members
Publication Year: 2013
Published by: Chinese University Press
Title Page, Copyright Page
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Preface to the Second Edition
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Financial Analysis in Hong Kong (Second Edition) is a product of experience, chapter review and correspondence with scholars, students, business executives and other professionals, as well as an update reflecting the changes in practices, guidelines, standards and legislations since the As an ongoing process to enhance this title, a vocation education ...
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... My sincere thanks go to The Chinese University of Hong Kong, for the continued trusts and supports on me in developing a certificate programme based on this book. My sincere appreciation also goes to my editor, Mr. Brian Yu at The Chinese University Press, for his editing skill and tireless hours to make this second edition a reality. ...
About the Author
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Benny K. B. Kwok is one of the world’s most renowned forensic accountants and experts in litigation support, dispute analysis and fraud investigation. He is the author of two other authoritative titles—Forensic Accountancy (2002/2008, 1st and 2nd Editions) and Accounting Irregularities in Financial During the 1980s and 1990s, Mr. Kwok worked in a British bank, the ...
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1. Regulatory Framework of Financial Reporting in Hong Kong
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This chapter introduces some important laws and regulations governing financial reporting in Hong Kong and includes the following sections:Financial analysis refers to the review and evaluation of corporations’ financial statements and other financials. As part of the annual reports, financial statements are prepared by corporations in accordance with the ...
2. Accounting and Auditing in Financial Analysis
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This chapter gives an overview of certain accounting and auditing subjects relevant to financial analysis and includes the following sections:Financial analysts involve studying a corporation’s past records of assets, liabilities, profits, sales, cost structure, business volume and quality of management with a view to gauging the degree of a corporation’s position ...
3. Key Components of Financial Statements
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This chapter introduces the key components of financial statements and Financial statements form part of corporations’ annual reports. Other than financial statements, corporations’ annual reports generally include corporate information, financial highlights, corporate governance report, chairman’s statement, directors’ report and audit report. All these ...
4. Accounting Ratios
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This chapter gives an overview and brief interpretation of accounting ratios from various perspectives and includes the following sections:• Accounting Ratios from Listed Corporations’ Financial HighlightsAs a concept in mathematics, ratios refer to the proportional relationship percentages. By placing one number over another, a ratio can be computed ...
5. Significance of Accounting Ratios in Financial Analysis
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This chapter involves structuring accounting ratios in a hierarchy and highlights possible limitations of the application of accounting ratios in financial analysis. This chapter includes the following sections:Ratios are fractions of numerators and denominators with various acceptable formulae and methods of calculation. Ratio analysis serves as a ...
6. Significance of Cash in Financial Analysis
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This chapter outlines the role of cash and statement of cash flows in financial analysis, and introduces cash flow ratios. This chapter includes “On paper our corporation is making plenty of money, but in reality we are starving for cash.” Many corporations complain when monies owed to them are overdue. “Making money” and “making profit” are not the same ...
7. Quality of Profits
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This chapter highlights the importance of sustainable profits by introducing the concept of quality of profits and includes the following For the quantitative aspect, analysts generally consider the more profits earned by a corporation the better. Analysts should also consider the qualitative aspect. Quality of profits is a term to express the strength of a ...
8. Quality of Governance
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This chapter outlines corporate governance and some related subjects together with the importance of assessing their strengths in financial Corporate governance can be viewed as the systems and processes by which corporations are directed and controlled in response to the rights and expectations of shareholders and other stakeholders. It covers a wide range ...
9. Common-Size Analysis, Trend Analysis,Cost-Volume-Profit Analysis and Common Sense
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In addition to those subjects already covered in the last few chapters, this chapter introduces other financial analytical techniques which are primarily based on the data available within the corporation in question Analysts apply tools and techniques converting data from financial statements into formats which facilitate the evaluation of a corporation’s ...
10. Macro Corporate Analysis
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This chapter introduces a series of factors in the macro environment environment and identify the relevant external factors affecting a corporation as well as how well the corporation’s internal strengths and weaknesses match with these external factors. To survive and prosper in the global market, corporations which align their own objectives and ...
Appendix I. List of Corporations Cited
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Appendix II. List of Financial Reporting Standards in Hong Kong
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Appendix III. List of Auditing Standards in Hong Kong
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Appendix IV. Audit Reports of Listed Companies Containing Modified Opinion and/or Explanatory Paragraph
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Appendix V. Extracts from Audited Financial Statements of Five Listed Corporations
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Appendix VI. Talking Points for Discussion Questions
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Page Count: 288
Publication Year: 2013