This brief textbook is designed for business students and managers, with little prior exposure to financial reporting, who wish to understand how financial statements can help them - and encourage others - to make decisions in the long run interest of the firm’s shareholders.  Pratt/Hirst, Financial Reporting for Managers is targeted at thoughtful business students and managers, wishing to learn how financial statement use and analysis can be a path to business success. The text brings together financial reporting and management decision making in a thoughtful, creative and easy to understand manner. Additionally, this text links shareholder value creation and the financial accounting statements to the market value of the firm in a way that can be easily understood by practitioners. How to use financial reporting to create shareholder value. Creating shareholder value is fundamental to management performance and performance evaluation. Speaking to current and future executives, this is the first text to combine this essential concept with the financial reporting process―the primary provider of the measures of shareholder value creation and its determinants. Thoughtful, creative, and easy to understand. Financial Reporting for Managers: A Value-Creation Perspective links shareholder value creation and the financial accounting statements to the market value of the firm in a way that can easily be understood by beginners and professionals alike. In simple, powerful terms, the book lays out the pathways leading from good decisions by management to strong financial statements, and higher shareholder value and stock prices. With this book, you will learn about: Shareholder value and its importance to a company’s long-term success - Financial statements and how to use them to measure, identify, and encourage value creation - ROE (Return on Equity), its determinants, and its relationship to the market value of the firm - Earnings management - Revenues, expenses, and working capital - Long-term producing assets and investments in equity securities With real-world cases illustrating each chapter and integrated global coverage, Financial Reporting for Managers ensures that you not only master the fundamentals of financial reporting, but then apply your knowledge to build strong long-term value for your organization. Jamie Pratt is Professor of Accounting at Indiana University, and has taught both around the U.S. and internationally. In 1993, he was the program chair for the American Accounting Association. He has been on the Educational Advisory Committee since 1990, and has also been the secretary of the board for the Pratt Corporation for 17 years. He has published extensively in research journals and has penned several texts. D. Eric Hurst is Associate Dean and Professor in the Department of Accounting at the Red McCombs School of Business at The University of Texas at Austin. His research has been published in Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, Auditing: A Journal of Practice & Theory, and Organizational Behavior and Human Decision Processes.