Financial Statements Analysis

Anastasia Koptsyukh
Subject:Financial statements analysis

Financial statements analysis
Financial statements analysis in the economic environment
What are financial statements?
A financialreport also known as financial statement is a formal inscription of the
financial activities of an individual,a business or another entity.In our case we
are interested in all the relevant financialinformation, presented in a structured
manner and in a form easy to understand for a business enterprise.
The financial statements
There are five financial statements to discuss upon (the last ofthem are the so
called “notes”):
Balance Sheet also known as statement of financial position.The Balance sheet
reports on a company's assets, liabilities,and ownership equity at a given point
intime.
Profit and loss account also known as statement of comprehensive income,
accounts on a company's income, expenses, and profits over a period of time. A
Profit & Loss statement providesinformation on the operation of the
enterprise. These include sale and the various expenses incurred during the
processing state.
Statement of Changes in Equity explains the changes of the company's equitythroughout the reporting period
Cash flows statement reports on a company's cash flow activities, particularly its
operating, investing and financing activities.
Notes a statement that usuallyincludes a description of each item of the balance
sheet,income statement and cash flow statement in detail.The notes are
considered an integral part of the financial statements.

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In caseof big enterprises, these statements are often complex and can also be
presented with a management discussion analysis and an explanation of
financial policies
What does the financial statementsanalysis consists of?And how should the
statements be?
Financial statement analysis is a knowladge or ability to analyse the financial
statements discussed before to be able to see a complete...