Scribd Logo
Upload

Welcome to Scribd!

  • 23 views

    Financial Analysis and Reporting Introduction Course

    Uploaded by

    Ramjie Mercado
    This document provides an overview of financial analysis and reporting. It discusses key concepts like revenues, expenses, profits, and cash flow. The objectives are to provide information about financial position, performance, and cash flow. Financial statements like the income statement and balance sheet are analyzed using frameworks that involve collecting, processing, analyzing and interpreting data to make recommendations. Accounting standards like GAAP and IFRS set rules for financial reporting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content

    Financial Analysis and Reporting Introduction Course

    Uploaded by

    Ramjie Mercado
    23 views2 pages
    This document provides an overview of financial analysis and reporting. It discusses key concepts like revenues, expenses, profits, and cash flow. The objectives are to provide information about financial position, performance, and cash flow. Financial statements like the income statement and balance sheet are analyzed using frameworks that involve collecting, processing, analyzing and interpreting data to make recommendations. Accounting standards like GAAP and IFRS set rules for financial reporting.

    Original Description:

    An Introductory Lesson on Financial Analysis and Reporting. These are lecture notes from slides.

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides an overview of financial analysis and reporting. It discusses key concepts like revenues, expenses, profits, and cash flow. The objectives are to provide information about financial position, performance, and cash flow. Financial statements like the income statement and balance sheet are analyzed using frameworks that involve collecting, processing, analyzing and interpreting data to make recommendations. Accounting standards like GAAP and IFRS set rules for financial reporting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    23 views2 pages

    Financial Analysis and Reporting Introduction Course

    Uploaded by

    Ramjie Mercado
    This document provides an overview of financial analysis and reporting. It discusses key concepts like revenues, expenses, profits, and cash flow. The objectives are to provide information about financial position, performance, and cash flow. Financial statements like the income statement and balance sheet are analyzed using frameworks that involve collecting, processing, analyzing and interpreting data to make recommendations. Accounting standards like GAAP and IFRS set rules for financial reporting.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 2

    FINANCIAL ANALYSIS and REPORTING THE ESSENTIAL QUESTIONS

    - Finances depiction
    - Formal 1. Stock? Good Idea?
    2. Profitable?
    KEY TERMS TO REMEMBER 3. Runway Cash
    - Revenues 4. Capital for new lines
    - Expenses 5. Vendor Relationships
    - Profits
    - Capital SOURCES OF FINANCIAL ANALYSIS
    - Cash Flow AND REPORTING

    OBJECTIVES : Provide information 1. Income statement: how much


    Financial Position / Balance Sheet money is made/lost (FISCAL YEAR)
    Financial Performance / Income Sheet
    - REVENUE EARNED
    PURPOSES
    1. PROVIDE INFORMATION 2. Balance Sheet: Assets and
    - Management ( planning Liabilities, used to assess CASH
    decision making) FLOW SITUATIONS
    - Investors, Debt
    Providers,(rational) 3. Cash Flow Statement: money flow
    - Shareholders and the in and out
    Public
    - Economic Resources FINANCIAL STATEMENT ANALYSIS
    (Liabilities & Owner’s Equity) FRAMEWORK
    - How resources are used
    - Performance Management 1. Articulate purpose
    in regards to diligently and 2. Collect Data
    ethically performing duties 3. Process Data
    4. Analyze and Interpret data
    “ A Financial Analysis and Report is 5. Recommend/Communicate
    required by the law and tax purposes” conclusions
    6. Follow Up
    “ It enhances social welfare”

    FINANCIAL ACCOUNT STANDARDS GAAP vs IFRS


    BOARD (FASB) - Tracking inventory
    - First IN First OUT (FIFO)
    - Sets accounting rules - Last IN First OUT (LIFO)
    (public/private)
    FUNDAMENTAL QUALITATIVE
    GOVERNMENT ACCOUNTING CHARACTERISTICS
    STANDARDS
    - Rules for state and local ● Relevance
    governments - Materiality
    - Predictive Value
    INTERNATIONAL ACCOUNTING ● Faithful Representation
    STANDARDS BOARD - Complete
    - Works with FASB - Neutral
    - Free from error
    ● Comparability
    3 Different Ways of Financial Reporting and - Comparable between
    Analysis different entities
    ● Verifiability
    1. GAAP (Generally Accepted ● Timeliness
    Accounting Principle) ● Understandability
    - Used by the USA - Clearly
    - concisely
    - Accounting rules and standards
    - Ensure Financial reporting is
    transparent and consistent LEARNER’S UNDERSTANDING AREA

    PRINCIPLES OF GAAP

    Prudence
    Periodicity
    Permanence of Methods
    Consistency
    Continuity
    Regularity
    Materiality
    Utmost Good Faith
    Sincerity
    Non-Compensation

    2. IFRS ( International Financial


    Reporting Standards)
    - Used by 110 countries
    - Not strict
    - Can report revenue sooner
    - Different requirements for
    expenses (can be
    capitalized)

    3. GDPR (General Data Protection


    Regulation)
    - Protects the personal
    information of individuals

    You might also like