Investors often use financial analyses for making appropriate investment decisions. Financial Institutions: In order to arrive at suitable decisions regarding granting a company with extended debt securities like debentures or long-term bank loan, or new working capital etc, financial institutions will need to verify the financial statements of companies. Government Entities: They need to verify these statements to determine the correctness and accuracy of taxes and further duties stated and paid by a business. Such statements will also help them in ensuring that the company is operating within the framework of relevant statutes and are complying with all statutory obligations. Vendors: Financial statements help them evaluate the creditworthiness of the company so as to enable them to take appropriate decisions. Media and the General Public: Financial statement allows this interest group to evaluate the performance with respect to ethical trading, compliance of environmental spending etc. IAS 1 modified the financial statements title as they will be used in International Financial Reporting Standards: Balance Sheet' will amend as 'statement of financial position’ Income Statement' will amend as 'Statement of Comprehensive Income' The revised International Accounting Standards (IAS1) has come into effect from the year 2009. However, it is not obligatory on the part of firms to use the latest titles in the financial statements. The Components of the Financial Statements: An entire set of financial statements as specified in the International Accounting Standards comprises: 1. Profit and Loss Account: Also known as Statement of Comprehensive Income, this statement for a specific period reflects the profit or loss for that particular period with other comprehensive income documented in that period. The standard is now using 'profit or loss' instead of the descriptive term 'net profit or loss' for the foot line of the income statement, consequent to the 2003 revision to IAS1. “All items of income and expense recognised in a period must be included in profit or loss unless a Standard or an Interpretation requires otherwise” (Accounting Standard (AS) 5: Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies n.d., p. 50). 2. Balance Sheet: Statement of Financial Position: This contains the detailed description of a company's assets, liabilities and ownership equity at a given point in time. Information to be presented in the statement of financial position IAS 1 specifies the minimum information which must be reflected on the balance sheet. 3. Cash Flow Statement: Cash flow statement after the reissue of IAS 1 is termed as Statement of cash flows and it presents a company’s cash flow activities, mainly it is operating, financing and investing activities. Besides, it also offers users of financial statements with a foundation to evaluate the company’s capability to create cash and cash equivalents and the concern’s requirement to utilise their inward and outward cash flows. IAS 7 specifies requirements for presenting and disclosing cash flow information. PART B: AC 4.2 Compare appropriate formats of financial statements for different types of business. Different types of
Be Able to Evaluate the Financial Performance of a Business PART A: AC 4.1 Discuss the main financial statements: Different users of financial statements use these for varying purposes: Owners and Managers: They use financial statements to formulate significant business decisions that will affect the company’s operations. Besides they also rely on such financial statements to prepare their annual report to be presented to the board and shareholders…
This report is based on the analysis online business website www.universalorlando.com. This report assesses this e-business platform and presents some suggestions which can help improve the operations of this website. This report also evaluates social networking or mass customization techniques those can be used to enhance the business working and operational performance.
The company is operated in two divisions: Canadian Division as well as in USA Division. During the year of 2010, the company completed the acquisition of various lands and properties that have become a complement in the assets of EnCana’s portfolio. After the breakup of Canadian Pacific Limited, EnCana Corporation was an unknown entity in the oil industry of North America.
Financial statements give complete information about equity, assets, liabilities, expenses, reserves and profit and loss of a concern. These statements help the management in making right decisions. The following constitute the basic financial statements.
The company which started since a humble beginning is now considered analogous for high fashion and trendy wear. Since its inception the company has been growing leaps and bounds and it has always put the demands and needs of its customers as the priority.
Paper provides samples of the management consulting for specific situations and examines issues of supporting of two prices, authority of managers and conflict solving. The goal of management consulting in our case is to increase effectiveness of financial and business performance, insure development and growth of business and suggest ways of solving problems within organizational structure.
Here, this point should be considered that the author of this report is a company representative, so this report may contain tailored or concealed facts. The directors' report section in the Sainsbury's annual report contains all the information as that in the Tesco's directors' reports except for the discussion on group results and sales.
It is based on the estimation of Yuri concerning how the product’s features, price, market share, anticipated marketing actions, allocation channels, and the sales in new areas will impact future sales.