Archive about 'Financial Statements'

Balance Sheet And Its Asset Side( Part 1 of 3)

WHAT IS A BALANCE SHEET?

 
A Balance Sheet is a snapshot of the financial position of an entity.
This snapshot is at a point of time.
Say, as at 7 May 2006, you look at Company A’s balance sheet, it reflects the financial position as at that day. After that day, the financial position company A can [...]

Who Looks At The Financial Statements?

WHO ARE THE USERS OF THE FINANCIAL STATEMENTS?

Equity Investor group: existing and potential shareholders; holders of convertibles, options or warrants

Loan Creditor group: existing and potential holders of debentures and loan stock, provider of short term secured and unsecured loans and finances, including bankers

Employee group [...]

What Are The Components of Financial Statements?

WHAT ARE THE COMPONENTS OF FINANCIAL STATEMENTS?

Balance Sheet

Income Statement

A statement showing either:

All changes in equity, or
Changes in equity other than those arising from capital transactions with owners and distribution to owners.

Accounting policies and explanatory [...]

Purpose of Using Financial Statements

INVESTORS: PURPOSE OF READING FINANCIAL STATEMENTS?

Assess the stewardship of management on the use of the economic resources controlled by the enterprise.

Assess the stewardship of management as a basis for assessing past and anticipated performance.

Assess the enterprise’s capacity to generate cash flows from its existing resource base and in forming [...]