Analysis of Financial Statements: IFRS, Working Capital, and Ratios

This report provides a comprehensive analysis of financial statements, focusing on management accounting and finance for decision-making. It begins with an evaluation of International Financial Reporting Standards (IFRS) adoption, emphasizing its role in promoting accounting practice harmonization. The report then delves into working capital analysis, including the calculation of working capital, working capital needs, and net cash. Common size income statements are analyzed to assess profitability trends. The report also includes a simplified balance sheet. The second part of the report focuses on strategic management accounting, specifically addressing cash budgets for Alpha Ltd. The report also considers other relevant factors in budget management and the impact of the economic environment on corporate reliance on budgets.