Tag Archive | "financial statements"

Accounting the Events after the Balance Date

The events after the balance date are those events, favorable and unfavorable, that occur between the balance date (the end of the reporting period) and the date at which the annual financial statements are authorized for issue by the executive management of the entity (e.g. Board of Directors).
We identify two types of events: events after the balance date, which lead to financial statements adjusting and events after the balance date, which do not lead to financial statements adjusting.
The process of authorizing the publishing of the financial statements depends on the structure of the reporting entity, on normalization and on procedures followed in preparing and finalizing the financial statements.
Some entities submit the financial statements for approval to their owners after they have been published. In such cases, the financial statements are authorized for publication on the date of publication, not the date they were approved by the owners.
The events after the reporting period include all events up to the date the financial statements are authorized for publication, even if those events occur after the public announcement of profit or of other selected financial information.

  Accounting the Events after the Balance Date (727.2 KiB, 1,389 hits)

Posted in Economics, Volume IV, Issue no. 5

Case Study on Analysis of Financial Statements at a Furniture Manufacturer

Analysis of the financial statements of a company is an important means to obtain information about how the company operated in the previous period. Interpretation of the evolution of financial indicators does not always prove to be easy, requiring multiple calculations and combined approaches, while the knowledge and understanding of type of business reviewed are essential in the proper interpretation of the results. Thus, the conclusions of the analysis carried out in a professional manner will be able to correctly describe the evolution of the company and to substantiate the user’s decisions.

  Case Study on Analysis of Financial Statements at a Furniture Manufacturer (483.1 KiB, 46,523 hits)

Posted in Economics, Volume III, Issue no. 5

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, 1,546 hits)

Posted in Economics, Volume III, Issue no. 3