The document summarizes a group project analyzing the theoretical understanding of financial statements and their key components. It includes: 1) An introduction outlining the objectives of understanding financial statement concepts and components. 2) A methodology section describing how secondary data was used to create a report structure and collect both qualitative and quantitative data with collaborative input from group members. 3) Descriptions of the main financial statements - balance sheet, income statement, and cash flow statement - and their basic formulas and elements. 4) An example analysis of the financial statements of Golden Harvest Agro Industries Limited. 5) A conclusion reinforcing that financial statements accurately portray a company's performance and assist stakeholders in decision making.

1. Alignment of
Theoretical
Understanding of
Financial Statements
with Annual Report
Date: 12-12-2021
Pautakhali Science & Technology University

2. Group Members
SL No. Name ID No. Registration
1 MD. Ahsan Kabir Jim 18030100 08407
2 Arifa Islam Oishe 18030101 08408
3 Shimanto Shougot Tanim 18030103 08410
4 Abidul Muhaimin Alvi 1703004 07645
5 Sanjana Rahman Urmi 1703060 07701
6 Vaskaranondo Mitra 1703025 07666
7 Kaniz Fatima 1703027 07668
8 Musfirat Hasan 1703058 07699
9 Rahat Bin Mustafiz 1703035 07656
10 Abu Bakar Siddique 1703042 07683
11 Md. Foysal Hossain Jihad 1703020 07661

3. Abstract
Analysis and description of the
theoretical understanding of
financial statement
A combination of both
qualitative and quantitative
data
Contains the basic
components of financial
statements

4. Written documents that describe a
company's operations and financial
performance
Core components are same
Helps the company to express
financial
Introduction
There are far too many different
ways to disclose financial data in
financial statements

5. 1 2 3
Learn how to
make an annual
report
Objectives of the Study
Understanding of
theoretical
concepts of
financial
statement
Understanding
the basic
components of a
financial
statement

6. Methodology
1
2
3
4
Secondary Data
Report structure is created
Data sources have been selected and data has
been collected from secondary data source.
Mostly use of qualitative data
Use of quantitative data where needed
5
Collaborative effort from team

7. Balance
sheet
Cash flow
statement
Income
statement
Financial statement and
it’s components

8. Balance sheet
Locate total assets
on a period's
balance sheet
Formula: Assets = Liabilities + Owner’s Equity
Total assets should be
equal to the total of
liabilities and total equity
Add up all of
the liabilities
Find total shareholder
equity and add it with
total liabilities

9. Elements of Balance sheet
 Cash and cash
equivalents
 Accounts
Receivable
 Inventory
 Investments
 Accounts
payable
 Salaries
payable
 Notes
payable
 Company's
entire assets
minus its
total
liabilities
Assets Liabilities Owners Equity

10. Income Statement
Add up all of the
revenue or sales for
the time period
Formula: Net Income = Revenue – Expenses
Add up all of
the business's
expenses and
charges
Subtract total
costs from
revenue

11. Cash Flow Statement
Investing activities
Financing activities
Operating activities

12. Do not Give Exact Position
Historical Costs
Impact of Non-Monetary
Factors Ignored
No precision
Only Interim Reports
Limitations of financial
statement

13. Golden Harvest Agro Industries Limited
Over 100,000 Bangladeshi agricultural
partners contribute 95% of the
company's raw materials
One of Bangladesh's first
to manufacture frozen
foods
Sells to the United States, Canada,
Australia, the Middle East, and Europe.

14. Balance Sheet of Golden Harvest
Agro Industries Limited

15. Income Statement of Golden
Harvest Agro Industries
Limited

16. Cash Flow statement of Golden
Harvest Agro Industries Limited

17. Result and discussion
the net asset value per share of
Golden Harvest Agro Industries
Limited decreased from 27.77 to
25.53
Earning per share increased
from 2.24 to 3.78 from 2019
to 2020
Golden Harvest Agro Industries Limited
Increased from 1.78 to 1.83
from 2019 to 2020

18. Conclusion
✤ Financial statement correctly depicts a company's business
performance and financial situation.
✤ Assists all stakeholders, including management, investors,
financial analysts, and others to take decisions.
✤ Financial statement show which parts of the business have
the highest ROI (return on investment)

19. Thank You