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217 0 obj %���� the income statement and the balance sheet Some of the important financial statements are: Important Financial Statements. That is the topic of this chapter—an introduction to financial state-ment analysis. Introduction to Accounting I Lecture Notes Page 1 of 20 INTRODUCTION TO ACCOUNTING ACNT 1303 Lecture Notes GENERAL INFORMATION FOR COMPLETING THE CLASS The following is a summary of the twelve chapters that you will be completing this semester. << /Pages 281 0 R /Type /Catalog >> Introduction to Financial Statements, Where the Amounts Come From, Accrual Method of Accounting. The statement of cash flows, which reports on cash inflows and outflows to the firm during the period of analysis! These reports provide some of the raw data people use in making financial decisions. Introduction to Financial Accounting pdf free download: Here we have provided some details for Introduction to Financial Accounting books and pdf. This is the most commonly used accounting method which reports income when earned and expenses when incurred. Statement: A financial statement that details excess of cash revenues over cash outlays excluding non-cash expenses in a give period of time. endobj %PDF-1.5 Fundamental Question: what do a firm’s financial statements tell us about the firm? Part 4. endobj endobj => need to understand how put together and what they tell us 2.1 Firm’s Disclosure of Financial Information Key issues: 4 Wiley IFRS Workbook and Guide IAS 39, Financial Instruments: Recognition and Measurement IAS 40, Investment Property IAS 41, Agriculture List of SIC Interpretations Still in Force for 2006 Financial Statements SIC 7, Introduction of the Euro SIC 10, Government Assistance—No Specific Relation to Operating Activities SIC 12, Consolidation—Special-Purpose Entities The income statement, which reports on how much a firm earned in the period of analysis! 5 Explain the meaning of assets, liabilities, and stockholders’ equity, and state the basic accounting equation. 2 Introduction to Financial Statements Figure 2.1 Derek’s Venture. Academia.edu is a platform for academics to share research papers. Part 5. 4 Describe the content and purpose of each of the financial statements. h�bbd```b``N �����X��d*��`a0�L��U��+�EނE���`�ry�H2�)����2012����q����� ` �3 - Let's talk a little about financial statements. The financial statements are prepared on the going concern basis and the accounting policies set out below have been applied consistently across the group and company, unless otherwise stated. The income statement presents the period's income and expenses and the resulting net income or loss. Distinguish between financial markets and financial institutions. AN INTRODUCTION TO THE FINANCIAL STATEMENT ANALYSIS www.finstanon.com 6 UNDERSTANDING THE FINANCIAL STATEMENTS OF A COMPANY Most of the companies are interested in providing their existing and potential investors with actual information on its performance and financial position. In this first video, we explain what the income statement is and the information that is presented on it. Functional and presentation currency These financial statements are presented in South African Rands, which is the company’s functional currency. time. As mentioned earlier, financial accounting deals with the preparation of financial statements for the basic purpose of providing information to various interested groups like creditors, banks, shareholders, financial institutions, government, consumers, etc. Financial statements are the final result of the accounting system. Supplement to Text . Basic Financial Statements! h�b```��,,� cb��@��5��� D8�r��ZĖŬ�x������ݻwoia|���|���u��Z��-Y�l��*�Rqp}�A���q/O(>f�{y���c��M�'�{���9 1102 0 obj <>/Filter/FlateDecode/ID[]/Index[1084 26]/Info 1083 0 R/Length 93/Prev 192927/Root 1085 0 R/Size 1110/Type/XRef/W[1 3 1]>>stream Aswath Damodaran! LKAS 1-Presentation of Financial Statements INTRODUCTION TO FINANCIAL MANAGEMENT Basic 1. In the next video, we explain how to analyze the income statement, and in subsequent videos we cover the balance Typically, financial statements are produced monthly for review by decision makers. 1084 0 obj <> endobj With some basic analysis tools (called ra-tios), we will be able to conduct some fundamental analysis of a company’s financial statements. stream Chapter 2: Introduction to Financial Statements . Income Statement. Cash Flow . The first is the balance sheet , shown in Figure 3.1, which summarizes the assets owned by a firm, the value of these assets and the mix of financing, debt and equity, used to finance these assets at a point in time. Many large companies today prepare a Statement of Comprehensive Income. Section 4 explains how to compute, analyze, and interpret common financial ratios. Capital budgeting (deciding on whether to expand a manufacturing plant), capital structure (deciding whether to issue new equity and use the proceeds to retire outstanding debt), and working capital management (modifying the firm’s credit collection policy with its customers). Part 2. Our analy- Explain the significance of the financial environment and how this environment influences the decisions of business managers and individuals. << /Type /XRef /Length 85 /Filter /FlateDecode /DecodeParms << /Columns 5 /Predictor 12 >> /W [ 1 3 1 ] /Index [ 215 81 ] /Info 232 0 R /Root 217 0 R /Size 296 /Prev 437899 /ID [<7095e78e16b5d97e24a31e0d499db811><7095e78e16b5d97e24a31e0d499db811>] >> Introduction to course Depending on the complexity of a group of companies, consolidation of financial figures may be a challenging process to execute. Part 3. Overview and Introduction to Financial Statements Administrative Matters, Discussion of Accounting Framework: L2: The Balance Sheet : L3: The Income Statement and Principles of Accrual Accounting : L4: The Accrual Accounting Process of Preparing Financial Statements : L5 endstream endobj startxref Technology can be a great tool for 216 0 obj Nevertheless, consolidated statements are vital in allowing investors, financial analysts, business owners and other interested parties to … �K���������(����D�@�����)(g6�v!H10����"`�t {+S3����]w1�1�a���pJ-vw @�z�] "��4�H�10� i���4+��F��Xg )m�`.�:@� �e\{ View TOPIC 3 - Introduction to Financial Statements (2).pdf from ACC FAR670 at Universiti Teknologi Mara. Financial statements are required to be presented fairly as set out in the frame‐work and in accordance with SLFRS and are required to comply with all requirements of SLFRSs. Introduction to Financial Statements TOPIC 3 Topic Outcomes • Identify the contents of the Accounting: Tools for Business Decision Making, 5th Edition answers to Chapter 1 - Introduction to Financial Statements - Brief Exercises - Page 29 BE1-10 including work step by step written by community members like you. Statement of Comprehensive Income. They play a vital role in allowing a user of a financial statement, to understand the results of a firm for a given year. This is commonly being This Book deals with Accounting Workbook For Dummies is largely about business accounting. An Introduction to Financial Statements In the preparation of final accounts of a firm , the financial statements display the net results for the given year. In this introduction series , we are providing a simple, basic overview of financial statements and how to analyze them. << /Linearized 1 /L 439459 /H [ 1160 478 ] /O 219 /E 103921 /N 40 /T 437898 >> %PDF-1.6 %���� << /Filter /FlateDecode /S 473 /Length 397 >> 6 Describe the components that supplement the financial statements in an annual report. Textbook Authors: Kimmel, Paul D.; Weygandt, Jerry J.; Kieso, Donald E. , ISBN-10: 1118128168, ISBN-13: 978-1-11812-816-9, Publisher: Wiley analysis of Microsoft’s financial statements reveals some of the reasons for the declining stock price. Stakeholders interpret financial statements to help make business, lending, and investment decisions. Section 3 provides a description of analytical tools and techniques. The balance sheet, which summarizes what a firm owns and owes at a point in time.! Financial statements, i.e. 1109 0 obj <>stream Chapter 3 An Introduction to Consolidated Financial Statements 3.1 Multiple Choice Questions 1) What method must be used if FASB Statement No. Balance Sheet. stream Sections 5 through 8 explain the use of ratios and other analytical data in equity %%EOF 0 View Unit 2 Introduction to Financial Statements.pdf from ACCOUNTING 101 at Western University. work for financial statements and the place of financial analysis techniques within the framework. endstream endobj 1085 0 obj <. The Basic Accounting Statements There are three basic accounting statements that summarize information about a firm. 218 0 obj Download Financial Accounting for Dummies: Here we have provided all the details for Financial Accounting for Dummies textbook. Financial Accounting is a specialized branch of accounting that keeps track of a company’s financial transactions. Part 1. Introduction to the Financial Environment _____ Learning Outcomes Upon completion of this chapter, you will be able to: 1. Each individual statement has an important role in helping users understand more about the reporting entity. x�cbd`�g`b``8 "Y��lS�tD2ƂH�} �u"�P��`5� �c�]$[��u��H�.0[����Y7�d�Q��$ x�� Introduction to financial accounting (132) ... differently to potential liabilities Policies Business must describe the accounting policies used to prepare their financial statements. Chapter 2: Introduction to Financial Statements-1 . They have a choice of policy such as fixed assets, goodwill, sales and stock valuations. 3! 94 prohibits full consolidation of a 70% owned subsidiary? 2. Download the Financial Accounting pdf Text book given below. The Income Statement, also known as Profit and Loss Statement (P&L Statement), shows the results of operationsof an entity over a particular period of time. Print PDF. Accounting Periods, Users of the Financial Statements. x�c```b``�``2��� �fa`2Y6000221� � ��]�d��2�t�5AY�Q�ٖ��� qƇ�zd'�:2�8x. Balance . The Statement of Comprehensive Income presents a company's results of operations (net income or loss) and its other comprehensive income (OCI). endstream Be sure that you are taking the time to read and STUDY each chapter. Financial statements are prepared using the accrual basis of accounting. If the company ha… 2. Introduction to Financial Statements- Tutorial: A picture from our video lesson, titled “Introduction to Financial Statements,” which shows the names of the commonly-used financial statements in accounting: the income statement, the retained earnings statement, the balance sheet, the statements of cash flows, and the annual report. 215 0 obj chapter INTRODUCTION TO FINANCIAL STATEMENTS 1 2 3. 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