Concept Guide
Reading an income statement
How to read a P&L under Ind AS, line by line from revenue to PAT, including EBITDA, other income and exceptional items.
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Accounting
Reading the three statements and the adjustments analysts make to them.
7 guides. Read in order, or jump to what you need.
Concept Guide
Reading a balance sheet
What a company owns, owes and leaves for shareholders: the Ind AS balance sheet layout, the key metrics, goodwill and contingent liabilities.
9 min readRead more
Concept Guide
Reading a cash flow statement
Why cash is harder to fake than profit: the three sections of the cash flow statement, free cash flow, and checks on operating cash quality.
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Concept Guide
Linking the three statements
How the P&L, balance sheet and cash flow statement feed into each other, and how to build a three-statement model that balances.
10 min readRead more
Concept Guide
Ind AS vs IFRS vs Indian GAAP
Who follows Ind AS, IFRS or old Indian GAAP, the key differences and carve-outs, and how to compare a company's numbers across the switch.
7 min readRead more
Concept Guide
Common adjustments (leases, ESOPs, one-offs)
The adjustments analysts make to reported numbers: exceptional items, ESOP costs, leases, forex and one-off write-offs, and the adjusted EBITDA trap.
9 min readRead more
Concept Guide
Quality of earnings
How to tell whether profit is backed by cash: CFO to PAT, accruals, receivables and DSO trends, the Beneish M-score, and earnings management in India.
10 min readRead more