Discover the keys to creating long-term shareholder value. The goal of every successful manager is to generate the best return on equity possible- creating, in turn, long-term value for shareholders. The tools of every good manager are a thorough understanding of economic factors, measurement issues, and the principles of decision making. The integrative approach to accounting and finance found in Jamie Pratt's Financial Accounting in an Economic Context, Seventh Edition helps you acquire these essential tools so you can make proper decisions based on a complete financial picture. And its real-world cases, rooted in today's business environment, enable you to develop an intuitive grasp of the balance between economics, internal controls, international standards, and ethics in your decision making. Keeping pace with the fast-changing business environment, this revised and updated edition adds new coverage of: Developments in business such as private equity, the growing influence of International Financial Reporting Standards (IFRS), Sarbanes-Oxley, and the importance of internal controls Return on equity (ROE) and its determinants Legal liability, ethical issues, and management's incentives and influence on financial reports Earnings management, including the use of discretion by management in the preparation of the financial statements to cast a favorable picture of the financial performance and condition of the firm.Pratt, Jamie is the author of 'Financial Accounting in an Economic Context', published 2008 under ISBN 9780470128824 and ISBN 0470128828.