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This text/ case book is based on the very successful Analysis of Corporate Financial Reports second-year MBA course taught at Harvard's Graduate School of Business Administration. This text supports the assumption that success in the business world as a manager, investor, creditor, or public accountant requires an understanding of the interplay between a company's corporate strategy and its corporate financial reporting policies and practices. This book shows financial statement users how to analyze financial reports so as to identify the economic realities of the reporting corporation by providing the reader with:1. an understanding of current financial reporting practices; 2. the ways in which corporate financial statements influence our economic system; 3. consequences of corporate financial data for those who depend on their credibility;4. the methods by which statement users interpret data contained in financial reports.