This text focuses on the output of financial statements, not the input. As such, the book asks what financial statements tell you, not how they are prepared. The idea is to get students to see accounting "working." The particular use of financial statements that the book focuses on is valuation. The text takes the approach that the best way to accurately value a firm is to look at the future earnings of the firm. The main pretext of the book is that financial statement analysis and valuation analysis are inextricably entwined: valuation is an exercise in financial statement analysis. Financial statement analysis is directed by the need to get information for valuation. Accordingly, the book brings finance and accounting concepts together. The book stresses concepts, but the idea is to show how to move from concepts to practice.
Beware this Tata McGraw Hill book is older 3rd Edition
I have bought many books on this site. With that trust and past experience I bought this book in a hurry. When received I found that this is an old 3rd edition. The current edition on amazon is 5th edition! Buy this only if you can live with 3rd edition. But then I do not know what are we missing Vis a Vis new edition. I am disappointed.