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Financial statement Analysis - Sample Assignment

   

Added on  2021-06-15

9 Pages1880 Words21 Views
Running head: FINANCIAL STATEMENT ANALYSISFinancial Statement AnalysisName of the Student:Name of the University:Author Note

1FINANCIAL STATEMENT ANALYSIS Table of ContentsIntroduction......................................................................................................................................2Provisions and Contingencies..........................................................................................................2Recognition criteria and measurement issues..................................................................................2Contingency record..........................................................................................................................3Leased items that have been disclosed in the books of accounts....................................................3Requirements and classification of the leased items.......................................................................4Reclassification of the leased item..................................................................................................5Non-current asset.............................................................................................................................6References and Bibliography...........................................................................................................8

2FINANCIAL STATEMENT ANALYSIS IntroductionThe accounting statements of the corporate entities are the primary books that arereferred to for the purpose of assessing the financial accounts of the corporate entities. Thismeans that the financial information that has been provided by the accounting statements reflectthe fact in regards to the financial and the liquidity positions of the corporate entities. Thefinancial statements that are prepared by the administration of the corporate entities are utilizedby the stakeholders and the other third party investors who have been utilizing the accountingstatements for the purpose of assessing the business structure and the financial performance ofthe corporate entities.This particular study aims to look into the corporate entity of Farm Pride Foods Limitedand aims to analyze the financial accounts and other aspects of the business entity.Provisions and ContingenciesThe issue that has been presented in the question refers to the particular financialcomponent of provisions and contingencies that have been disclosed in the books of accounts ofthe corporate entities. It has been stated in the financial report of the corporate entity that theprovisions have been recognized at the time of the consolidated entity is having a constructive ora legal obligation. The financial component of provisions have been raised due to the past eventsdue to which an outflow of the benefits that are economic in nature will come out and theoutflow can be carried out in measurable terms. It must be noted here that the effect of the timevalue of money if material, then the discounts on the provisions are charged by utilizing a pre-taxrate that results in the reflection of the risks that are only applicable to the liability. It must further be noted here that there has been no mention of contingencies in the booksof accounts. This means that the annual report of the corporate entity consists of no suchinformation in regards to the contingencies of the business entity (Barth 2013). Recognition criteria and measurement issuesIt has been mentioned in the annual report of the corporate entity that the recognitioncriteria that has been utilized by the administration of the business entity is the new accountingstandard that has still not been issued in terms of operations of the corporate entity. It has beenfurther mentioned in the books of accounts of the corporate entity of Farm Pride Foods that the

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