Financial reporting
Financial statements are structured events affecting a company’s financial performance, and transactions carried out by it.
The financial statements now include:
- Balance Sheet or Statement of Financial Position
- The income statement or statement of comprehensive income
- The Statement of Changes in Equity
- Table of Cash Flows
These documents must be:
- Intelligible
- Reliable
- Relevant
- Relative important
The financial year
A/Budget
B/Control and achievements:
- Compare achievements with forecasts
- Make corrective actions
- Analyze and explain any differences between forecasts and realizations.
C/Benefits and disadvantages of planning:
*Benefits:
- Have a global vision
- Use means optimally
- Rational management
*Disadvantages:
- High costs
- Variable and uncertain databases
- Risk of error
Shareholders, bondholders and landholders
- Shareholders: An individual, group, or organization that owns one or more shares in a company, and in whose name the share certificate is issued.
- Bondholders: A person owning a bond or bonds issued by a government or a public company.
- Landholders: A person who owns land, especially one who either makes a living from it or rents it out to others.
Profit and loss account
- Accruals counting :
- Accrued expenses: expense is recognized before cash is paid out.
- Accrued revenues: revenue is recognized before cash is received
- Accruals payroll: a common benefit that an employer will provide for employee.
- Profit and loss
*What is profit and loss statement?
The profit and loss statement is a summary of the financial performance of a business over time (monthly, quarterly or annually is most common).
Earnings
- Routine earnings: are those that can be achieved by application of assets.
- Non routine earnings: products that aren’t related to the main activities of a company.
Laissez un commentaire