Your SlideShare is downloading. ×
0
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
FSA Chapter 3
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

FSA Chapter 3

1,143

Published on

Published in: Economy & Finance, Business
1 Comment
2 Likes
Statistics
Notes
No Downloads
Views
Total Views
1,143
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
1
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  1. Financial Statement Analysis Chapter 3 Financial Statements Bonsón, E., Cortijo, V., Flores, F.   Content on this file is licensed under a Creative Commons Attribution Non-Commercial No Derivatives Works 3.0
  2. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  3. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  4. Introduction <ul><li>IAS 1 , Presentation of Financial Statements, describes overall requirements for the presentation of general-purpose financial statements, as well as guidelines for their structure and minimum requirements for their content. </li></ul>
  5. Introduction <ul><li>IAS 1 defines guidelines for the structure of financial statements and minimum requirements for their presentation and content but it does not prescribe the order or format </li></ul><ul><li>Based on the information provided by this standard and the rest of IFRS, the IASC Foundation XBRL Team has been developing, since 2002, IFRS Taxonomies –that is, digital templates - in order to facilitate the adoption of IFRS </li></ul>
  6. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  7. Statement of financial position <ul><li>formerly known as balance sheet , it provides information about the economic resources owned by a company (assets) as well as the financial resources used to acquire them (liabilities and equity) at a moment in time </li></ul>
  8. Statement of financial position <ul><li>Under IAS 1, companies are required to classify its assets and liabilities into two different categories: current and non current </li></ul><ul><li>Alternatively , IAS 1 allows companies to show its assets and liabilities on a liquidity basis when this presentation format provides more reliable or relevant information. </li></ul>
  9.  
  10.  
  11.  
  12.  
  13. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  14. Statement of comprehensive income <ul><li>It appeared as a consequence of the last revision of the IAS 1 </li></ul><ul><li>It provides the analyst with information about the performance of a company </li></ul><ul><li>It is really useful to assess potential changes in the economic resources owned by the entity, predict future cash flows , and make other informed predictions </li></ul>
  15. Statement of comprehensive income <ul><li>It includes, not only all the components of “ profit or loss ” but also all the components of “ other comprehensive income ” that are: </li></ul><ul><ul><li>Changes in revaluation surplus </li></ul></ul><ul><ul><li>Actuarial gains and losses on defined benefit plans </li></ul></ul><ul><ul><li>Translations gains and losses </li></ul></ul><ul><ul><li>Gains and losses on re-measuring available-for-sale financial assets </li></ul></ul><ul><ul><li>Effective portion of gains and losses on hedging instruments in a cash flow edge </li></ul></ul>
  16. Statement of comprehensive income <ul><li>Components of comprehensive income can be presented either in a single statement or in two statements </li></ul><ul><li>If a company chooses the second option, it must prepare a separate income statement , which includes all components of profit or loss and distinguishes between profit (loss) from continuing and discontinued operations </li></ul><ul><li>The company can classify expenses according to their nature of their function </li></ul>
  17.  
  18.  
  19. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  20. Statement of changes in equity <ul><li>It must include the following information on the face of the statement: </li></ul><ul><ul><li>total comprehensive income for the period (disclosing in different sections amounts attributable to owners and to minority interest). </li></ul></ul><ul><ul><li>for each component of equity, the effects of retrospective application or retrospective restatement recognized in accordance to IAS 8 , Accounting Policies, Changes in Accounting Estimates and Errors. </li></ul></ul><ul><ul><li>transactions with owners , providing information about contributions from and distributions to owners. </li></ul></ul><ul><ul><li>for each component of equity, the reconciliation between the carrying amounts at the beginning and at the end of the period, separately disclosing each change. </li></ul></ul>
  21. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  22. Statement of cash flows <ul><li>Fully explained in IAS 7 , it provides information about the cash receipts and cash payments of an entity during a period classified by </li></ul><ul><ul><li>operating (can be presented under the direct or the indirect method. Although the direct method has been strongly endorsed by the IASB, very few reporting companies decided to use it) </li></ul></ul><ul><ul><li>investing and </li></ul></ul><ul><ul><li>financing activities </li></ul></ul><ul><li>It can be used to estimate the amount, timing and certainty of future cash flows </li></ul>
  23.  
  24. to be continued
  25. continued
  26. to be continued
  27. to be continued
  28. continued
  29. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  30. Notes to the financial statements <ul><li>The objectives of the notes to the financial statements are </li></ul><ul><li>to complement , clarify and qualify the information included in general-purpose financial statements </li></ul><ul><li>to provide information about the basis of preparation of the financial statements and the specific accounting policies adopted </li></ul><ul><li>to report information required by IAS which is not presented elsewhere and additional information </li></ul><ul><li>They must be presented in a systemic manner, so each item on the face of the financial statements must be cross-referenced </li></ul>
  31.  
  32.  
  33. Index <ul><li>Introduction </li></ul><ul><li>Statement of financial position </li></ul><ul><li>Statement of comprehensive income </li></ul><ul><li>Statement of changes in equity </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Notes to the financial statements </li></ul><ul><li>Chromosome of valuation and presentation for each company </li></ul>
  34. Chromosome of valuation and presentation for each company <ul><li>Alternative options allowed by IFRS </li></ul><ul><li>Presentation of financial statements </li></ul><ul><ul><li>Alternative options for: </li></ul></ul><ul><ul><ul><li>Statement of financial position </li></ul></ul></ul><ul><ul><ul><li>Income statement </li></ul></ul></ul><ul><ul><ul><li>Cash flow statement </li></ul></ul></ul><ul><li>Valuation of assets </li></ul><ul><ul><li>Alternative options for: </li></ul></ul><ul><ul><ul><li>Property plant and equipment </li></ul></ul></ul><ul><ul><ul><li>Investment property </li></ul></ul></ul><ul><ul><ul><li>Intangibles other than goodwill </li></ul></ul></ul>
  35. Company chromosome, first view
  36. Chromosome usefulness in future chapters To define calculable analysis indicators To define comparable analysis indicators

×