Uploaded by Jocelyn Sacco

Financial Analysis and Reporting

Financial Analysis and
Presented by:
Carl Jhames Quiano
Renante Mendoza
Purpose of financial statements
• Financial statements are structured representation of the financial positions,
financial performance, cash and flows of an additional information like definition
of the item, measurement or valuation procedures, and disclosure requirements.
• The basic objectives of general-purpose financial statements is communication, that
is, to provide information about the following;
1. Financial position
2. Financial performance
3. Cash flows
4. Management stewardship of resources
• The information provided in the financial statements, along with other
information in the notes, assists, users in predicting the entity’s future cash
flows and, in particular, in their timing and certainty.
• The process of predicting the a-earning potentials and financial capabilities
of an entity is made through the analysis of the different pieces of
information contained in the financial statements.
Accounting cycle- Step 6. Preparing the
financial statements
• A complete set of financial statements comprises;
1.) A statements of financial positions, (or balance sheet) as the end of the period;
2.) A statements of comprehensive incomes for the period;
3.) A statement of change in equity for the period;
4.) A statement of cash flows for the period;
5.) Notes, comprising a summary of significant accounting policies and other explanatory
information; and
6.) A statement of financial position as the beginning of the earliest comparative period when an
entity applies an accounting policy retrospectively or makes retrospective of items in it’s financial
statements or when reclassifies in its financial statements.
Statement of Comprehensive Income
• An entity shall present all items of income and expense in a period;
A. In a single statements of comprehensive income ,or
B. In two statements a statements displaying components of profit and loss
(separate income statement ) and a second statement beginning with profit
or loss and displaying components of other comprehensive income
(statement of comprehensive income ).
• The income statement is a statement showing the performance of the
enterprise in a given period of time. It summarizes the revenues earned and
expenses incurred for that period of time.