Financial Statements Of Foreign Companies Essay

In this paper I will identify the four basic financial statements, discuss how they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees.

“I could offer you a bed, and I should consider it an honour.” (189)- This quote is morality because he has good morals for offering him somewhere to stay and he is his guest.

1.In week one reading the reader will find out there is four primary financial statement balance sheet, income statement, statement of stockholder’s equity, and statement of cash flows.

Two additional areas that concern management are accounting policies and FASB standards changing. Accounting policies dictate that “properties to be disposed of are reported at the lower of their carrying amount or fair value, reduced for estimated disposal costs, and are included in other current assets” (F. Phillips, 2006). The Landry’s acquisitions increased the properties to approximately 300, but as the disposal of the properties occurs the loss will be significant.

Total assets at the end of its most recent annual reporting period? Why is this important?

To determine Panorama’s financial positions, we need to use ratio analysis. There are four main categories we can use. They are liquidity, activity, profitability, and debt or financial leverage.

Items presented in the financial statements of each of the Group`s entities are measured using the functional currency. IPL’s presentation currency is the Australian dollar, the currency used to present its consolidated financial statements. Foreign currency transactions are translated into the functional currency at the exchange rate on the day the transaction occurs. Foreign exchange gains and losses are recognised in the statement of comprehensive income, except when they are `deferred in equity as qualifying cash flow hedges`. These have been calculated following the AASB 121 `The effects of changes in Foreign exchange rates` and AASB 139 `Financial instruments – recognition and measurement`.

Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.

This Income Statement also known as the Earnings Statements or statement of operation, is one of the four Financial Statement used by accountants, business owner’s, and investors. The Income Statement provides a detailed look into how profitable a business has been over a designated period of time.

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ

A company’s financial statements contain the true fiscal pulse of the company. If ever there is a need to check the health of a company to see how strong or weak it is fiscally, the financial statements hold the answers. These statements allow shareholders, lenders, and investors the opportunity to assess a number of things about the company such as how it can grow it’s customer base, where it falls short at any particular time, and even how well the company is doing amongst it’s peers. Financial statements also provide key information regarding a company’s accounting principles. The purpose of this paper is to identify and assess each of the documents that make up a firm’s financial statements, which are, the income statement, the balance sheet, and the statement of cash flows.

INDIVIDUAL ASSIGNMENT FIN202 | | TOPIC: Financial statement analysis and stock valuationLECTURE: PHAM LIEN HASTUDENT: HOANG MY LINH ROLL NUMBER: FB00073 CLASS: FB0609 - FPT University | | Contents I. INTRODUCTION 2 1. Main production 2 2. Segment market 2 3. Vision 2 4.

For this research I need financial information from the Balance Sheets and Financial Statements of listed non-financial firms. According to the previously discussed theory, entrusted loans can be tracked down on the lender 's side more easily, not only because of the distinctive movement in their balance sheets, but because bigger, listed corporation usually face much stricter reporting obligations, thus it is easier to acquire their financial data. The Standard and Poor 's Capital IQ database (Standard and Poor 's, 2015) provides financial data on listed corporations all around the globe. It has a great coverage of data across countries and time periods for all sectors. All the data is provided in million US dollars. The database uses the Global Industry Classification Standard (GICS) (Standard and Poor 's, 2008), which categorizes firms into 10 sectors, with further sub-groups for better transparency. Since I am only interested in non-financial corporations, firms, whose principal activity is not finance, such as a telecommunication or a railway company, I have to drop all financial companies from my sample. GICS designates the financial sector with the number 40(Standard and Poor 's, 2008), thus non-financial corporations are defined as firms, whose industry classification is not equal 40. As it is very important to only have non-financial corporations in my sample, any firms with ambiguous or missing industry classification, was dropped.

The balance sheet and Income statement are the most important financial statements of the company that help conduct current analysis of company and evaluate its trends overtime. The balance sheet represents the company snapshots of its financial position on the last days of accounting period. Apple balance sheets, which represent a snapshot of its ending balances in asset, liability and equity account as of the date stated on the report, are changes each year from 2003 to 2014. On the other hand, the income statement shows its financial performance over 2003 to 2014. Apple basically ends its accounting period in September. Most of the long-term debts are in the form of the bonds. According to appleinsider.com, Apple recently issues a new euro bond worth about $2.26 billion with a maturity date on January 17, 2024 and coupon rate of 1.375% payable annually. The first payment will occur on January 17, 2016. Moody’s recently assigned a rating of Aa to Apple Inc. 's senior unsecured note issuance. Thus, Apple recent capital expenditure amount to 11,488 million according to morningstar.com. The analysis of financial statements is conduct to compare Apple with one of its closest rival Hewlett-Packard and twelve ratio were calculated. From table1 and chart1, the current ratio that determine the company ability to meet its short term obligation shows Apple’s current ratio is higher than that of Hewlett-Package from 2003 to 2014. That is, Apple is solvent than Hewlett Packard. Table

There are some notable differences between, both, the formats, and the content of financial statements when using SAGE compared the standards required when following IAS1. These differences vary between stating which currency you are using, the contents and layout of items in the statements, rounding, and the terminology used to describe items in the statements and several more. This report aims to compare, critique, and provide suggestion for improvement where necessary regarding SAGE and how it links with IAS 1.