Performance Management
|
|
- Colin Stafford
- 5 years ago
- Views:
Transcription
1 UNIVERSITY OF PAVIA Performance Management Chiara Demartini Master in International Business and Economics 1
2 Lectures and Test Lectures: Tuesday hr Room 15 Wednesday hr Room F Office hours: Mondays hr Written test: 18/01/ /02/2016 Tutor: Mr Davide Grillo 2
3 Structure of the module and materials First part: Principles of Financial Accounting Principles of Financial Statement Analysis Teaching notes Second part: Performance Management Teaching notes & Demartini C. (2013), Performance Management Systems. Design, Diagnosis and Use, Springer, Berlin. 3
4 Module grading Module grading: 30% case studies and other assessments over the module 30% presentation of a company s performance management system 40% written test 4
5 Part One: Principles of Financial Accounting Master in International Business and Economics 5
6 Financial Accounting Financial Accounting provides information: 1. primarily to people outside the company 2. that would be helpful in attracting capital Equity and debt (useful in debt contracts) Credit from suppliers Customers Employees 3. helpful in monitoring and evaluating management performance 6
7 Aims of Financial Accounting Resources flow: tomorrow Stakeholders: Present and potential investors Employees Suppliers Economic resources, claims to those resources and changes Information Resources flow: today Company 7
8 Financial accounting Financial accounting translates events into financial statements Events Rules & management choice Accounting Principles Financial statements GAAP Generally Accepted Accounting Standards IFRS International Financial Reporting Standards 8
9 IFRS 1 The objective of this IFRS is to ensure that an entity s first IFRS financial statements, and its interim financial reports for part of the period covered by those financial statements, contain high quality information that: (a) is transparent for users and comparable over all periods presented (b) provides a suitable starting point for accounting in accordance with International Financial Reporting Standards (IFRSs) (c) can be generated at a cost that does not exceed the benefits. 9
10 Delivery of financial information Demand for independence: Accounting enters objective, verifiable information into accounting records Information produced by managers alone is not believable. Outside investors demand independently audited financial information In the process, accounting misses out on forwardlooking information that might be valuable, but lacks objective evidence (e.g., research in progress) 10
11 Asymmetry in financial reporting Faced with uncertain bad news, accounting tends to enter it into the records Asymmetric treatment of good and bad news Faced with uncertain good news, tendency to ignore it Why? Demand for bad news Creditors with no upside, but all the downside Investors believe bad news disclosed by management, but sceptical of good news unless supported by objective evidence Management incentives affect credibility of their disclosures 11
12 International Financial Reporting Management letter The Annual Report Financial Statements Auditors report 12
13 The Auditors Report GAAS (Generally Accepted Auditing Standards) Actual opinion Reasonable assurance that financial statements are free of material misstatement Financial statements present fairly the financial position, the results of operations, etc. Assess the accounting principles used and significant estimates made by management Compliance with GAAP (Generally Accepted Accounting Principles) 13
14 The Auditors Report Management responsible for the preparation and integrity of the financial statements, etc. Statements prepared in accordance with GAAP. Estimated amounts based on management's best estimates and judgments. Maintenance of an internal control system to ensure that assets are safeguarded and transactions are properly authorized, recorded and reported. The Board has an Audit Committee composed entirely of outside directors This committee appoints the auditor who has direct access to the Audit Committee. 14
15 Financial statement auditing The objective of the ordinary audit of financial statements by the independent auditor is the expression of an opinion on the fairness with which they present fairly, in all material respects, financial position, results of operations, and its cash flow in conformity with generally accepted accounting principles. The auditor s report is the medium through which he expresses his opinion or, if circumstances require, disclaim an opinion. (para , AICPA, SAS N. 1, codification of Auditing Standards and Procedures) 15
16 Independence and objectivity «Objectivity is a state of mind, a quality that lends value to a member s services. It is a distinguishing feature of the profession. The principle of objectivity imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest. Independence precludes relationships that may appear to impair a member s objectivity rendering attestation services.» AICPA. 16
17 Audit opinion 1) Unqualifed Opinion 2) Qualified Opinion 3) Adverse opinion 4) Disclaimers of opinion Emphasis of matter 17
18 Basics of double entry bookkeeping: The account All the events related to business transactions should be entered into ACCOUNTS twice. Accounts are the basic founding units of the double entry bookkeeping, which is the accounting methodology to record transactions. Accounts can be analysed according to two main cathegories: either economic (e.g. revenues, expenses) or financial (e.g. payables, receivables) ones. 18
19 The structure of an account DEBIT Euro Purchase a/c CREDIT DEBIT Bank account Euro CREDIT 19
20 Debit or credit an account? Balance Sheet Income Statement 20
21 Accrual & Cash Method There are two main methods of accounting (or bookkeeping): 1. Accrual method 2. Cash method The accrual method of accounting is the preferred method because it provides: a more complete reporting of the company's assets, liabilities, and stockholders' equity at the end of an accounting period, and a more realistic reporting of a company's revenues, expenses, and net income for a specific time interval such as a month, quarter or year. As a result, US and Italian GAAP requires most corporations to use the accrual method of accounting. 21
22 Accrual v Cash Method The following table compares the accrual and cash methods of accounting: 22
23 Financial statement The financial statements must "present fairly" the financial position, financial performance and cash flows of an entity. (IAS 1) It contains primarily historical information Balance Sheet Assets, liabilities & owners equity Income Statement Revenue (-) Expenses = Net Income Statement of changes in equity and retained earnings Cumulative sum of undistributed profits Statement of cash flows Operating, Investing and Financing activities Footnotes Significant accounting policies, estimates, etc. 23
24 Going Concern Principle The Conceptual Framework notes that financial statements are normally prepared assuming the entity is a going concern and will continue in operation for the foreseeable future. (IAS 1) If management has significant concerns about the entity's ability to continue as a going concern, the uncertainties must be disclosed. 24
25 Balance sheet Financial Statements: Balance Sheet Statement of the financial position of a business as of a certain date. Assets Resources owned by a corporation, e.g., cash, accounts receivable, equipment, land Liabilities amounts/services owed by the company, e.g., loans payable, accounts payable, customer advances, etc. Stockholders equity initial investment by the owners Plus the cumulative sum of undistributed profits (retained earnings). ACCOUNTING EQUATION ASSETS LIABILITIES EQUITY 25
26 Minimum line items (a) property, plant and equipment (b) investment property (c) intangible assets (d) financial assets (excluding amounts shown under (e), (h), and (i)) (e) investments accounted for using the equity method (f) biological assets (g) inventories (h) trade and other receivables (i) cash and cash equivalents (j) assets held for sale (k) trade and other payables (l) provisions (m) financial liabilities (excluding amounts shown under (k) and (l)) (n) current tax liabilities and current tax assets, as defined in IAS 12 (o) deferred tax liabilities and deferred tax assets, as defined in IAS 12 (p) liabilities included in disposal groups (q) non-controlling interests, presented within equity (r) ASSET SIDE LIABILITY AND EQUITY issued capital and reserves attributable to owners of the parent. SIDE 26
27 27
28 Financial Statements: Income Statement Income statement measures the performance of a company over a period of time Expenses A measure of economic sacrifices incurred to earn the revenues of a given period Revenues A measure of economic benefits generated by the sale of products or providing of services over a period of time Net income Revenues Expenses 28
29 29
30 Dividends Are dividends paid to owners considered an expense? Owners are residual claimants Dividends are distributions to the owners out of the profits earned by the business In determining accounting profits to the residual owners, we only subtract the costs of all factors of production, e.g., physical capital (depreciation), human capital (salaries), debt capital (interest cost), etc. Dividends are not a factor of production 30
31 Financial Statements: Retained Earnings and Shareholders Equity Retained earnings A measure of undistributed profits of a business Do not include capital contributed by owners Retained earnings = Cumulative sum of profits earned from the inception of business (-) Cumulative sum of all dividends distributed to the owners from the inception of business Statement of shareholders equity describes the change in retained earnings over a period of time (e.g., a year) Beginning balance in retained earnings Net income earned Dividends distribute d Ending balance in retained earnings 31
32 Financial Statements: Retained Earnings and Shareholders Equity 32
33 Financial Statements: Statement of Cash Flows The statement of cash flows details the enterprise s cash flows. This operating statement reveals how cash is generated and expended during a specific period of time. (a) operating activities (b) investing activities (c) financing activities 33
34 Financial Statements: Statement of Cash Flows Cash received from customers Inventory Purchased Cash Paid for Inventory Cash Paid for Salaries and Wages Total Sales minus the increase in Net Receivables (or, plus a decrease in net receivables) Cost of Goods Sold minus the decrease in Inventory (or, plus an increase in inventory) Inventory Purchased minus the increase in Accounts Payable (or, plus a decrease in accounts payable) Wages Expense Plus the Decrease in Wages Payable (or, minus an increase in wages payable) Cash paid for Taxes, interests and other normal business expenses (a) operating activities (b) investing activities (c) financing activities 34
35 Financial Statements: Statement of Cash Flows Cash inflows from sales of assets Cash outflows for purchase of assets Disposal of long-term assets (Land, Building, Equipment, Brands), sales of investment bonds or stocks, or loans to other companies etc. Payment for acquiring long-term assets (Land, Building, Equipment, Brands, etc.) or longterm investments in other firms (a) operating activities (b) investing activities (c) financing activities 35
36 Financial Statements: Statement of Cash Flows Cash inflows Cash outflows Stock or bonds issuing, borrowing under loans Repayment of borrowings, acquisition of treasury stock, dividend distribution (a) operating activities (b) investing activities (c) financing activities 36
37 37
38 38
39 39
40 Further information No dividends were due or paid on the $300,000 of preferred stock which was issued in exchange for a building in late 20X5. Average common equity is assumed to be $2,095,000 ((($2,910,000 - $300,000) + $1,580,000)/2). Assume most other balance sheet items change uniformly throughout the year (e.g., average receivables = ($600,000 + $850,000)/2 = $725,000, etc.). The year-end market value of the common stock was $10 per share, and the cash dividend was paid on shares outstanding at the end of the year ($50,000/910,000 shares = $0.055 per share). 40
41 Financial Statements: Statement of Cash Flows 41
42 Financial Statements Linkages Income statement, statement of retained earnings, and balance sheet articulate. The income for the period ties into the statement of retained earnings Income statement Statement of retained earnings the ending retained earnings ties into the balance sheet. This final tie-in causes the balance sheet to balance. Balance Sheet 42
43 Part One: Principles of Financial Statements Analysis Master in International Business and Economics 43
44 Financial Statements Analysis Investors must be very thorough in examining the financial statements of companies in which they are considering making an investment. Sometimes, the evaluation of complex situations can be assisted by the use of key metrics or ratios. LIQUIDITY RATIOS DEBT SERVICE RATIOS TURNOVER RATIOS OTHER INDICATORS PROFITABILITY RATIOS 44
45 Liquidity Ratios CURRENT QUICK Ability to meet near time obligations Narrower than Current Ratio Current Assets Current Liabilities (Cash+Short-term investment+receivables) Current Liabilities 45
46 Debt Service Ratios Debt to Total Assets Debt to Total Equity Times Interests Earned Percentage of TA financed by long-term and short-term debts Proportion of financing that is debt related Ability to meet interest obligations Total Debt Total Assets Total Debt Total Equity Income before Income taxes and Interests Interest charges 46
47 Based on this information alone, which company would likely obtain the less favorable interest rate on additional debt financing? 47
48 Turnover Ratios ACCOUNT RECEIVABLE TURNOVER Frequency of collection cycle INVENTORY TURNOVER Frequency of inventory rotation Net Credit Sales Average Net Accounts Receivable Cost of goods sold Average inventory 48
49 Profitability Ratios Net Profit on Sales Gross Profit Margin Return on Assets Return on Equity Profitability on sales; for comparison and trend analysis Gross Profit Rate Assets utilisation in producing returns Effectiveness of equity invested in producing returns Net income Net sales Gross Profit Net sales Net income + interest expense Total Assets Net income Preferred Dividends Avg common E 49
50 Other Indicators EPS P/E Dividend rate yield Amount of earnings attributable to a single common share Price of stock in relation to EPS Yield to investors through dividend payments Income N. Of common shares Market price PS EPS Annual Cash Dividend Market price PS 50
51 Other Indicators Dividend Payout Ratio Book Value Proportion of earnings distributed as dividends The amount of shareholders equity per common share outstanding Annual Cash Dividend EPS Common Equity Common share outstanding 51
52 Horizontal Analysis Horizontal analysis, also called trend analysis, refers to studying the behavior of individual financial statement items over several accounting periods. These periods may be several quarters within the same fiscal year or they may be several different years. ABSOLUTE VALUE ANALYSIS PERCENTAGE VALUE ANALYSIS 52
53 Absolute v Percentage Analysis Absolute Analysis Financial statement users with expertise in particular industries might evaluate amounts reported for research and development costs to judge whether a company is spending excessively or conservatively. Users are particularly concerned with how amounts change over time. Percentage Analysis It involves computing the percentage relationship between two amounts. Percentage analysis sidesteps the materiality problems of comparing different size companies by measuring changes in percentages rather than absolute amounts. 53
54 Horizontal Analysis 54
55 Vertical Analysis Vertical analysis uses percentages to compare individual components of financial statements to a key statement figure. Horizontal analysis compares items over many time periods Vertical analysis compares many items within the same time period. 56
56 Vertical Analysis of the Income Statement Vertical analysis of an income statement (also called a common size income statement) involves converting each income statement component to a percentage of sales. Although vertical analysis suggests examining only one period, it is useful to compare common size income statements for several years. 57
57 58
58 Vertical Analysis of the Balance Sheet Vertical analysis of the balance sheet involves converting each balance sheet component to a percentage of total assets. Even small individual percentage changes, however, may represent substantial dollar increases. 59
59 60
60 Limitations of Financial Statement Analysis External users can rely on financial statement analysis only as a general guide to the potential of a business. They should resist placing too much weight on any particular figure or trend. Many factors must be considered simultaneously before making any judgments. The analysis techniques discussed are all based on historical information. Future events and unanticipated changes in conditions will also influence a company s operating results. 61
61 Sources of Limitations of Financial Statement Analysis Different Industries Changing Economic Environment Accounting Principles Different industries may be affected by unique social policies, special accounting procedures, or other individual industry attributes. When comparing firms, analysts must be alert to changes in general economic trends from year to year. Two particular concepts, conservatism and historical cost, have a tremendous impact on financial reporting. 62
62 Groupwork 63
63 64
Not For Sale. Overview of Financial Statements FACMU14. Cengage Learning. All rights reserved. No distribution allowed without express authorization.
Overview of Financial Statements FACMU14 P a r t 1 23450_ch01_ptg01_lores_001-040.indd 1 5/1/12 9:08 PM 23450_ch01_ptg01_lores_001-040.indd 2 5/1/12 9:08 PM Chapter Introduction to Business Activities
More informationCopyright 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
1-1 Accounting What the Numbers Mean CHAPTER 1: Accounting Present and Past Marshall, McManus, and Viele 11th Edition 1-2 Learning Objectives After studying this chapter you should understand and be able
More informationUNDERSTANDING THE INCOME STATEMENTS
UNDERSTANDING THE INCOME STATEMENTS 1 IS = Income Statement R = Revenue E = Expenses FV = Fair Value SL = Straight-Line AFS = Available For Sale Securities I.S is sometimes referred to as statement of
More informationFAQ: Financial Statements
Question 1: What is the correct order in which financial reports must be created? Answer 1: The income statement is created first, then the owners' equity statement, and finally the balance sheet. This
More informationUnderstanding Financial Statements. Elizabeth Rankin
Understanding Financial Statements Elizabeth Rankin Overview Accounting Concepts Principles Financial Statements Evaluating Performance Horizontal Analysis Vertical Analysis Ratio Analysis Entity Concept
More informationA CLEAR UNDERSTANDING OF THE INDUSTRY
A CLEAR UNDERSTANDING OF THE INDUSTRY IS CFA INSTITUTE INVESTMENT FOUNDATIONS RIGHT FOR YOU? Investment Foundations is a certificate program designed to give you a clear understanding of the investment
More informationMODULE 1: The role and importance of financial reporting Part A: The role and importance of financial reporting
MODULE 1: The role and importance of financial reporting Part A: The role and importance of financial reporting The role of financial reporting The importance of financial reporting Who must prepare general
More informationAnalysis and Interpretation of Financial Statements
Chapter 23 Analysis and Interpretation of Financial Statements o Prepare comparative financial statements using horizontal analysis o Prepare comparative financial statements using vertical analysis o
More informationRestatement of 2004 Results under International Financial Reporting Standards. Grafton Group plc
Restatement of 2004 Results under International Financial Reporting Standards Grafton Group plc 6 July 2005 1 6 July 2005 RESTATEMENT OF 2004 RESULTS UNDER IFRS Grafton Group plc today announces the impact
More informationModule 1: The role and importance of financial reporting
MODULE 1: The role and importance of financial reporting Part A: The role and importance of financial reporting The role of financial reporting The importance of financial reporting Who must prepare general
More informationFinancial Statement Analysis for the Boardroom. An Attorney s Guide September 13, 2017
Financial Statement Analysis for the Boardroom An Attorney s Guide September 13, 2017 Contact information For more information, please contact one of the following members of the engagement team: Marc
More information1
www.accountancyknowledge.com 1 CIMA C02 Fundamental of Financial Accounting Overview of Financial Accounting www.accountancyknowledge.com 2 Definitions of Accounting Accounting is the language of the business
More informationIFRS pocket guide inform.pwc.com
IFRS pocket guide 2016 inform.pwc.com Introduction 1 Introduction This pocket guide provides a summary of the recognition and measurement requirements of International Financial Reporting Standards (IFRS)
More informationWorkshop II: Accounting
Workshop II: Accounting Workshop II: Accounting The Accounting Equation Key Concepts Stock vs Flow Cash vs Accrual Debits vs Credits U.S. GAAP Balance Sheet Income Statement Statement of Cash Flows Sample
More informationVASSETI (UK) PLC CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014
CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2014 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (All Amounts in Ringgit Malaysia) 6 Months ended 6 Months ended 30-Jun 30-Jun 2014
More informationFinancial Statement Analysis. Cash Flow Statement
Financial Statement Analysis Cash Flow Statement 1 The Articulation of the Financial Statements Beginning stocks Flows Ending stocks Cash Flow Statement Beginning Balance Sheet Cash Cash from operations
More informationFin-621 Final term Solved Papers by Fahad Yusha Cell: and
FINALTERM EXAMINATION Spring 2010 FIN621- Financial Statement Analysis (Session - 1) : 90 min Marks: 69 Question No: 1 ( Marks: 1 ) - Please choose one Which one of the following is NOT a type of adjusting
More informationAccounting and Finance for Lawyers
ACADEMY OF AMERICAN AND INTERNATIONAL LAW Accounting and Finance for Lawyers Stanley Siegel New York University Law School 2015, Stanley Siegel Financial Accounting Part I: Overview and Basic Principles
More informationTABLE OF CONTENTS AUDITING AND ATTESTATION
TABLE OF CONTENTS AUDITING AND ATTESTATION Topic Page OVERVIEW OF AN ATTEST FUNCTION... 1 AUDIT OPINIONS... 5 USE OF REPORT OF ANOTHER AUDITOR... 11 COMPARATIVE FINANCIAL STATEMENTS... 13 COMPILATIONS
More informationPREVIEW OF CHAPTER 24
24-1 PREVIEW OF CHAPTER 24 24-2 Intermediate Accounting IFRS 2nd Edition Kieso, Weygandt, and Warfield Presentation and 24 Disclosure in Financial Reporting LEARNING OBJECTIVES After studying this chapter,
More informationUnit 2. Theory Base of Accounting. Accounting Concepts
Generally Accepted Accounting Principles (GAAP) Unit 2 Theory Base of Accounting Generally accepted accounting principles (GAAP) refer to the standard framework of guidelines for financial accounting used
More informationE1-E2 Accounting Standards And Ratio analysis
E1-E2 Accounting Standards And Ratio analysis For internal circulation of BSNLonly 1 WELCOME This is a presentation for the E1-E2 (Finance) Module for the Topic: Accounting standards and Ratio analysis
More informationDOOSAN INFRACORE CO., LTD. SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 AND INDEPENDENT AUDITORS REPORT
DOOSAN INFRACORE CO., LTD. SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2011 AND INDEPENDENT AUDITORS REPORT Independent Auditor s Report English Translation of a Report Originally Issued
More informationStationery and Office Supplies Limited. Financial Statements. December 31, 2017
Financial Statements Contents Page Independent auditor s report 1-5 Financial Statements Statement of financial position 6 Statement of profit or loss 7 Statement of changes in equity 8 Statement of cash
More informationDetailed Alert International Accounting Standards: Framework for the Preparation and Presentation of Financial Statements (1989) Preface
Abstract The Framework for the Preparation and Presentation of Financial Statements sets out the concepts that underlie the preparation and presentation of financial statements for external users. The
More informationChapter 19. Financial Statement Analysis. Learning Objectives. The Annual Report Usually Contains...
PowerPoint to accompany Chapter 19 Financial Statement Analysis Learning Objectives 1. Perform a horizontal analysis of comparative financial statements 2. Perform a vertical analysis of financial statements
More informationINDEPENDENT AUDITORS' REPORT
To the Shareholders of Electrovaya Inc. INDEPENDENT AUDITORS' REPORT We have audited the accompanying consolidated financial statements of Electrovaya Inc., which comprise the consolidated statement of
More informationDOOSAN ENGINE CO., LTD. SEPARATE FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011, AND INDEPENDENT AUDITORS REPORT
DOOSAN ENGINE CO., LTD. SEPARATE FINANCIAL STATEMENTS AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2012 AND 2011, AND INDEPENDENT AUDITORS REPORT Independent Auditors Report English Translation of a Report
More informationIntroduction to International Financial Reporting Standards
Introduction to International Financial Reporting Standards Structure of IASCF International Accounting Standards Committee Foundation (22 Trustees) InternationalAccounting Standards Board (15 members)
More informationCONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED FINANCIAL STATEMENTS Linamar Corporation Consolidated Financial Statements, and, (in thousands of dollars) 1 MANAGEMENT S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS The management
More informationReading & Understanding Financial Statements
Reading & Understanding Financial Statements A Guide to Financial Reporting Introduction Financial statements are an important management tool. When correctly prepared and properly interpreted, they contribute
More informationReading & Understanding Financial Statements. A Guide to Financial Reporting
Reading & Understanding Financial Statements A Guide to Financial Reporting Introduction Financial statements are an important management tool. When correctly prepared and properly interpreted, they contribute
More informationCorporation for Public Deposits
Corporation for Public Deposits Annual Financial Statements for the year ended 31 March 2012 Contents Page Approval and statement of responsibility... 2 Independent auditor s report... 3 Directors report...
More informationInterpreting the Audited Financial Statements
Financial Management Program Interpreting the Audited Financial Statements John G. Hulsey, CGFM jhulsey@uga.edu 1 Learning Objectives At the end of this class, you should be able to - Recite audit requirements
More informationProfessional Level Essentials Module, P2 (INT)
Answers Professional Level Essentials Module, P2 (INT) Corporate Reporting (International) June 2008 Answers 1 (a) The functional currency is the currency of the primary economic environment in which
More information1. The income statement is the major device for measuring the profitability of a firm over a period of
Foundations of Financial Management 15th Edition Block Test Bank Full Download: http://testbanklive.com/download/foundations-of-financial-management-15th-edition-block-test-bank/ Chapter 02 Review of Accounting
More informationChapter 2 Asset and Liability Valuation and Income Measurement
Chapter 2 Asset and Liability Valuation and Measurement MULTIPLE CHOICE 1. Which of the following assets appears on the balance sheet at Historical cost? a. Equipment b. Notes Payable c. Investments in
More informationConcise Consolidated Balance Sheet
VI. Financial Standing A. Most Recent 5-Year Concise Financial Information (1) Concise Balance Sheet and Statement of Comprehensive Income Concise Consolidated Balance Sheet Unit: NT$000 Item Period 2012
More informationChapter 1 Environment and Theoretical Structure of Financial Accounting: Monday, May 21, 2018
Chapter 1 Environment and Theoretical Structure of Financial Accounting: Monday, May 21, 2018 8:54 PM Financial Accounting Environment Primary Focus of financial accounting is on the information needs
More informationFinancial Statement Analysis
Financial Statement Analysis Introduction to Financial Reporting 1. Financial Accounting Standard Board (FASB) conceptual framework is applicable to general purpose financial statements. 2. Financial statements
More informationWEEK 10 Analysis of Financial Statements
WEEK 10 Analysis of Financial Statements Learning Objectives 1. Organize a systematic financial statements analysis using common-size financial statements and ratio analysis. 2. Recognize the potential
More informationAuditor Independence in the Public Sector BY STEPHEN W. BLANN
Auditor Independence in the Public Sector BY STEPHEN W. BLANN State and local governments serve a variety of stakeholders. Some of these (such as creditors and regulatory agencies) are very similar to
More informationPUDO INC. (formerly "Grandview Gold Inc.")
PUDO INC. CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED FEBRUARY 29, 2016 (EXPRESSED IN CANADIAN DOLLARS) To the Shareholders of PUDO Inc. INDEPENDENT AUDITOR S REPORT We have audited the accompanying
More information1. The primary function of financial accounting is to provide relevant financial information to parties external to business enterprises.
Page 1 of 38 1 Student: 1. The primary function of financial accounting is to provide relevant financial information to parties external to business enterprises. True False 2. Accrual accounting attempts
More informationChapter 3. Cash-Flow Statements
Introduction to Cash-Flow Statements 1 Chapter 3 Cash-Flow Statements TABLE OF CONTENTS Introduction 3 Direct Format Operating Section 5 Indirect Format Operating Section 6 Exercise 3.01 7 What Do I See?
More informationFINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK
2 FINANCIAL REPORTING: ITS CONCEPTUAL FRAMEWORK CHAPTER OBJECTIVES After careful study of this chapter, students will be able to: 1. Explain the FASB conceptual framework. 2. Understand the relationship
More informationAccountingCoach.com Financial Ratios
AccountingCoach.com Financial Ratios All underlined words are defined in the attached Glossary (Pages 13 20). Introduction to Financial Ratios When analyzing computing financial ratios and when doing other
More informationUnderstanding Accounting & Financial Statements
This image cannot currently be displayed. Accounting Principles INDE-Engineering Economy Understanding Accounting & Financial Statements Presented By: Magdy Akladios, PhD, PE, CSP, CPE, CSHM ACCOUNTING
More informationBASIC FINANCIAL ACCOUNTING REVIEW
C H A P T E R 1 BASIC FINANCIAL ACCOUNTING REVIEW I N T R O D U C T I O N Every profit or nonprofit business entity requires a reliable internal system of accountability. A business accounting system provides
More informationCRH Medical Corporation Canada Place Vancouver, BC V6C 3E1
CRH Medical Corporation 522 999 Canada Place Vancouver, BC V6C 3E1 Year-Ended December 31, 2013 Financial Report Trading Information: Toronto Stock Exchange (Symbol CRH ) For Information Contact: Richard
More informationGREEN CROSS CORPORATION. Separate Financial Statements. December 31, 2012 and (With Independent Auditors Report Thereon)
Separate Financial Statements, 2012 and 2011 (With Independent Auditors Report Thereon) Contents Independent Auditors Report 1 Page Separate Financial Statements Separate Statements of Financial Position
More informationAccounting Functions. The various financial statements are- Income Statement Balance Sheet
Accounting Functions The accounting system provides a structure of maintaining details of business transactions that represent the finances of the organization. The various financial statements are- Income
More informationFINANCIAL INFORMATION ACT RETURN
FINANCIAL INFORMATION ACT RETURN Year Ended March 31, 214 Published in accordance with the Financial Information Act, Revised Statutes of British Columbia 1996, Chapter 14, as amended. FINANCIAL INFORMATION
More informationOPEN JOINT STOCK COMPANY BELAGROPROMBANK. Consolidated Financial Statements For the year ended 31 December 2009
OPEN JOINT STOCK COMPANY BELAGROPROMBANK Consolidated Financial Statements For the year ended OPEN JOINT STOCK COMPANY BELAGROPROMBANK TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT S RESPONSIBILITIES
More informationBRITISH COLUMBIA HYDRO AND POWER AUTHORITY
BRITISH COLUMBIA HYDRO AND POWER AUTHORITY Financial Information Act Return for the Year Ended March 31, 216 Published in accordance with the Financial Information Act, Revised Statutes of British Columbia
More informationLadysmith & District Credit Union Consolidated Financial Statements December 31, 2014
Ladysmith & District Credit Union Consolidated Financial Statements December 31, 2014 Management s Responsibility To the Members of Ladysmith & District Credit Union: Management is responsible for the
More informationCHAPTER 1 CONCEPT OF FINANCIAL ANALYSIS
CHAPTER 1 CONCEPT OF FINANCIAL ANALYSIS 1 MEANING AND CONCEPT OF FINANCIAL ANALYSIS Financial analysis refers to an assessment of the viability, stability and profitability of a business, sub-business
More informationIFRS for SMEs (proposals) Pocket Guide 2007
IFRS for SMEs (proposals) Pocket Guide 2007 PricewaterhouseCoopers (www.pwc.com) is the world s largest professional services organisation. Drawing on the knowledge and skills of 125,000 people in 142
More informationPresentation of Financial Statements
International Accounting Standard 1 Presentation of Financial Statements In April 2001 the International Accounting Standards Board (IASB) adopted Presentation of Financial Statements, which had originally
More informationFull text edition Grant Thornton International Ltd. All rights reserved. PDF created with pdffactory Pro trial version
Full text edition 2008 Grant Thornton International Ltd. All rights reserved. 2008 Grant Thornton International Ltd. All rights reserved. Member firms of the Grant Thornton International organisation are
More information6. Chapter 1 Question TF #6 A firm makes investments to obtain productive capacity to carry out its business activities.
1. Chapter 1 Question TF #1 The managers of a business prepare financial statements to present meaningful information about that business s activities to external users, *a. True b. False 2. Chapter 1
More informationDataWind Inc. Condensed Consolidated Financial statements of
Condensed Consolidated Financial statements of DataWind Inc. For the three and nine months ended December 31, 2014 and 2013 (in thousands of Canadian dollars) (Unaudited) Contents Notice to Reader 2 Interim
More informationKAPPA SECURITIES S.A.
KAPPA SECURITIES S.A. Companies Reg. No. 24829/06/Β/91/50 FINANCIAL STATEMENTS AT 31 DECEMBER 2008 In accordance with International Financial Reporting Standards (IFRS) Page 1 of 37 CONTENTS Page Report
More informationPresentation of Financial Statements
IAS Standard 1 Presentation of Financial Statements In April 2001 the International Accounting Standards Board (the Board) adopted IAS 1 Presentation of Financial Statements, which had originally been
More informationThe Erawan Group Public Company Limited and its Subsidiaries
The Erawan Group Public Company Limited and its Subsidiaries Financial statements for the year ended 31 December 2013 and Independent Auditor s Report Independent Auditor s Report To the Shareholders of
More informationRevenue From Contracts With Customers
September 2017 Revenue From Contracts With Customers Understanding and Implementing the New Rules An article by Scott Lehman, CPA, and Alex J. Wodka, CPA Audit / Tax / Advisory / Risk / Performance Smart
More informationMVSR ENGINEERING COLLEGE MBA DEPARTMNET FINANCIAL ACCOUNTING AND ANALYSIS
MVSR ENGINEERING COLLEGE MBA DEPARTMNET FINANCIAL ACCOUNTING AND ANALYSIS Accounting : The systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers
More informationJAGUAR LAND ROVER SERVICIOS MÉXICO, S.A. DE C.V. (formerly Servicios GDV México, S.A. de C.V.) Financial Statements
JAGUAR LAND ROVER SERVICIOS MÉXICO, S.A. DE C.V. (formerly Servicios GDV México, S.A. de C.V.) Financial Statements 31 December 2017 and 2016 with Report of Independent Auditors JAGUAR LAND ROVER SERVICIOS
More informationECON132 Exam #1 Summer 2005 Session B
ECON132 Exam #1 Summer 2005 Session B Name: Perm #: Please answer questions 1-35 on your green scantron. If the question is a true false question, answer A for true and B for false. The short answer/ essay
More informationFINANCE MANAGEMENT FOR NON-FINANCE MANAGERS. Michael F Hartung
FINANCE MANAGEMENT FOR NON-FINANCE MANAGERS Michael F Hartung Course Agenda Module 1 Module 2 Module 3 Module 4 Module 5 Module 6 Introduction & Finance Stakeholders Accounting Overview Financial Reporting
More informationBasic Elements of Balance Sheet Assets Liabilities
FINANCIAL ANALYSIS COURSE OUT LINE Course Objectives: This course is an advance subject which uses the out put of accounting records/data. The outline of this course is basthink about the firm.ed on the
More informationCHAPTER 2. Financial Reporting: Its Conceptual Framework CONTENT ANALYSIS OF END-OF-CHAPTER ASSIGNMENTS
2-1 CONTENT ANALYSIS OF END-OF-CHAPTER ASSIGNMENTS NUMBER Q2-1 Conceptual Framework Q2-2 Conceptual Framework Q2-3 Conceptual Framework Q2-4 Conceptual Framework Q2-5 Objective of Financial Reporting Q2-6
More informationHSBC BANK BERMUDA LIMITED Consolidated Financial Statements
Consolidated Financial Statements 2012 Consolidated Financial Statements and Audit Report for the year ended 31 December 2012 THIS PAGE IS INTENTIONALLY LEFT BLANK Consolidated Financial Statements and
More informationBRITISH COLUMBIA HYDRO AND POWER AUTHORITY
BRITISH COLUMBIA HYDRO AND POWER AUTHORITY Financial Information Act Return for the Year Ended March 31, 217 Published in accordance with the Financial Information Act, Revised Statutes of British Columbia
More informationDirectors Report 3. Income Statements 4. Statements of Changes in Equity 5. Balance Sheets 6. Statements of Cash Flows 7-8
Rakon Limited Annual Report 2009 Table of Contents Directors Report 3 Income Statements 4 Statements of Changes in Equity 5 Balance Sheets 6 Statements of Cash Flows 7-8 Notes to Financial Statements
More informationSpecial Considerations Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement
Special Considerations Audits of Single Financial Statements 965 AU-C Section 805 Special Considerations Audits of Single Financial Statements and Specific Elements, Accounts, or Items of a Financial Statement
More informationPresentation of Financial Statements
International Accounting Standard 1 Presentation of Financial Statements This version includes amendments resulting from IFRSs issued up to 31 December 2009. IAS 1 Presentation of Financial Statements
More informationNHN ENTERTAINMENT CORPORATION. Condensed Separate Interim Financial Statements
NHN ENTERTAINMENT CORPORATION Condensed Separate Interim Financial Statements (With Independent Auditors Review Report Thereon) Contents Page Independent Auditors Review Report 1 Condensed Separate Statement
More informationCBF Exam Review. Financial Statements Part 1. Tom Shimko, CCE
CBF Exam Review Financial Statements Part 1 Tom Shimko, CCE 1 CBF Exam 1. Tests consists of 140 questions - 101 multiple choice questions - 39 true/false questions 2. Subject matter covered - Business
More informationProf Albrecht s Notes Income Statement Intermediate Accounting 1
Prof Albrecht s Notes Intermediate Accounting 1 The income statement has been the most important of the required financial statements in the United States. This importance is revealed in several ways:
More informationCHAPTER 2: FINANCIAL STATEMENTS AND THE ANNUAL REPORT
Using Financial Accounting Information The Alternative to Debits and Credits 9th Edition Porter Test Bank Full Download: http://testbanklive.com/download/using-financial-accounting-information-the-alternative-to-debits-and-credits-9th-
More informationExaminable Documents September 2018 to June 2019
Examinable Documents September 2018 to June 2019 FINANCIAL REPORTING The examinable documents below are applicable to the International and UK papers as indicated at the start of each table. Knowledge
More informationReading Understanding. Financial Statements. A Layman s Guide to Financial Reporting
Reading Understanding & Financial Statements A Layman s Guide to Financial Reporting 1 Introduction Financial statements are an important management tool. When correctly prepared and properly interpreted,
More informationGateway NACM Credit Conference Presented by: Curtis Litchfield, CCE September 19, 2018
Welcome Gateway NACM Credit Conference Presented by: Curtis Litchfield, CCE September 19, 2018 Financial Statement Analysis Tools and Techniques Common-Size Financial Statements Key Financial Ratios Trend
More informationMitsubishi International Corporation and Subsidiaries (A Wholly-Owned Subsidiary of Mitsubishi Corporation)
Mitsubishi International Corporation and Subsidiaries (A Wholly-Owned Subsidiary of Mitsubishi Corporation) Consolidated Financial Statements as of and for the Years Ended March 31, 2009 and 2008, and
More informationAXON GLOBAL PLC REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31 December 2011
REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31 December 2011 REPORT AND CONSOLIDATED FINANCIAL STATEMENTS 31 December 2011 CONTENTS PAGE Board of Directors and other Officers 1 Report of the Board of
More informationExaminer's Answers F2 - Financial Management March 2014
Examiner's Answers F2 - Financial Management March 2014 Some of the answers that follow are fuller and more comprehensive than would be expected from a well-prepared candidate. They have been written in
More information2. This Standard supersedes IAS 7 Statement of Changes in Financial Position, approved in July 1977.
COMPARISON OF GRAP 2 WITH IAS 7 GRAP 2 IAS 7 DIFFERENCES Objective Objective.01 The cash flow statement identifies the sources of cash inflows, the items on which cash was expended during the reporting
More informationHow Well Am I Doing? Financial Statement Analysis
How Well Am I Doing? Financial Statement Analysis Chapter 16 McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Limitations of Financial Statement Analysis Differences
More informationch01 Student: 1. The primary focus for financial accounting information is to provide information useful for:
ch01 Student: 1. The primary focus for financial accounting information is to provide information useful for: A. Option a B. Option b C. Option c D. Option d 2. What is the primary purpose of financial
More informationStatement of Cash Flows
IAS Standard 7 Statement of Cash Flows In April 2001 the International Accounting Standards Board adopted IAS 7 Cash Flow Statements, which had originally been issued by the International Accounting Standards
More information> > > > > > > > Chapter 16. Understanding Accounting and Financial Statements
> > > > > > > > Chapter 16 Understanding Accounting and Financial Statements 1 2 3 Explain the functions and importance of accounting, and identify the three basic activities involving accounting. Describe
More informationINDEPENDENT AUDITOR S REPORT TO THE SHAREHOLDERS OF AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED OPINION
6 FINANCIAL STATEMENTS INDEPENDENT AUDITOR S REPORT TO THE SHAREHOLDERS OF AFRICAN EQUITY EMPOWERMENT INVESTMENTS LIMITED OPINION We have audited the consolidated and separate financial statements of African
More informationMEGA Brands Inc. Consolidated Financial Statements December 31, 2013 and 2012 (in thousands of US dollars)
MEGA Brands Inc. Consolidated Financial Statements December 31, 2013 and 2012 (in thousands of US dollars) Independent Auditor s Report To the Shareholders of MEGA Brands Inc. We have audited the accompanying
More informationOHLTHAVER & LIST F OR THE YE AR ENDED 30 JUNE 20 17
OHLTHAVER & LIST GROUP ANNUAL FINANCI AL F OR THE YE AR ENDED 30 JUNE 20 17 S TATEMENT S APPROVAL OF FINANCIAL STATEMENTS Responsibility Of Directors The Directors are responsible for the maintenance of
More informationFinancial Accounting. (Exam)
Financial Accounting (Exam) Your AccountingCoach PRO membership includes lifetime access to all of our materials. Take a quick tour by visiting www.accountingcoach.com/quicktour. Table of Contents (click
More informationThe Pocket CFO: Tools And Metrics
The Pocket CFO: Tools And Metrics The Pocket CFO: Tools and Metrics Copyright 2014 by DELTACPE LLC All rights reserved. No part of this course may be reproduced in any form or by any means, without permission
More informationFinancial Statement Analysis
EXECUTIVE SUMMARY While it is sometimes difficult to convince the customer to share their financial information, it must be understood that the financial statement is probably the most important tool available
More informationAcerinox, S.A. and Subsidiaries
Acerinox, S.A. and Subsidiaries Consolidated Annual Accounts 31 December 2016 Consolidated Directors' Report 2016 (With Auditors Report Thereon) (Free translation from the original in Spanish. In the event
More information2016/2/25 Financial Statement Balance Sheet
2016/2/25 Financial Statement Balance Sheet Financial Statement Balance Sheet Accounting Title 2015/12/31 2014/12/31 Balance Sheet Assets Current assets Cash and cash equivalents Total cash and cash equivalents
More information