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Financial Statements Analysis

This article focuses on analyzing of a consolidated financial statements of a hypothetically SME. The interpretation of the financial position and performances is based on the more than 40 financial key ratios computed by using financial data from consolidated income statement, consolidated financial position and cash flow. However additional data from notes to financial statements are provided.

  Financial Statements Analysis (815.4 KiB, 3,905 hits)

Posted in Economics, Volume IV, Issue no. 5Comments Off on Financial Statements Analysis

Improving the Numbers of Financial Statements

Improving the numbers of financial statements can be achieved by several metods such as: recording the revenue too soon, recording bogus revenue, shifting the current expense to a futer or a earlier period, failing to record liabilities or shifting the cureent revenue to a later periods. As beeing science, technology or language of communication the accounting should reflect economic reality of transactions. Legal regulations, knowledge, creativity, management, and innovation spirit are all factors that are applied in practice and these factors contribute to economic reality through science of the reporting or ‘financial position and performance tuning (creative accounting).

  Improving the Numbers of Financial Statements (905.3 KiB, 1,688 hits)

Posted in Economics, Volume III, Issue no. 3Comments Off on Improving the Numbers of Financial Statements

Presentation of Consolidated Statement of Cash Flows under IAS 7, Statement of Cash Flows

The consolidated financial statements must includ a specific statement, regarding cash flows from all activities of the entity, called „consolidated statement of cash flow”. Information for preparing cash flow statements can be found in all other components of the financial statements, such as financial position, statement of comprehensive income and statement of changes in equity. The cash flow statement shall report cash flows during the period classified by operating, investing and financing activities. Classification by activity provides information that allows users to assess the impact of those activities on the financial position of the entity and the amount of its cash and cash equivalents. An entity shall report cash flows from operating activities using either the direct method or the indirect method under IAS 7, Statement of Cash Flows.

  Presentation of Consolidated Statement of Cash Flows under IAS 7, Statement of Cash Flows (334.7 KiB, 14,539 hits)

Posted in Economics, Volume III, Issue no. 1Comments Off on Presentation of Consolidated Statement of Cash Flows under IAS 7, Statement of Cash Flows