Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting

Lecture Series Unit No. 1:
Topic: (2) Financial Statements, Cash
Flow and Taxation
(Course: Forensic Accounting & Homeland Security, GFSU)
CA Vikram Shankar Mathur
BA (Eco) Hons, FCA, DISA (ICAI), FAFP (ICAI)
Contact No: +91-9998090111 or +91-8460890111.
Email: vsmathurco@gmail.com or vsmathur@ahmedabadfca.com
Website: http://vsmathur.co.in and http://ahmedabadfca.com
FB Profile(s): http://fb.me/vsmathurco or http://fb.me/vsm.ahmfca
FB Page: http://fb.me/fcavsmathur.faculty

Quick Recap of the last lecture
• Financial Manager must be familiar with the familiar with the following aspects of the business
environment: forms of business organization, financial system, regulatory environment and tax system.
• The important forms of business organization are: sole proprietorship, partnership, private limited
company and public limited company and limited liability partnership / company. From the viewpoint
of value maximization, the public limited company is most appropriate.
• Principal components of the financial system are: financial assets, financial intermediaries, financial
markets and financial yields and interest rates.
• E&S Risk = Environmental and Social Risk (for Financial Institutions).
• Fairly elaborate regulatory framework for industrial sector in India. Major elements are (i) Industrial
Policy Resolution (ii) Industries (Development Regulation) Act, (iii) Companies Act, (iv) Limited Liability
Partnership/Company Act (v) Capital Issues (Control) Act, (vi) MRTP Act and (vii) FERA / FEMA.
• The procedure for computing the tax burden of a business entity is rather involved. It calls for taking
into account a variety of reliefs and incentives available under the Income-Tax Act.
• The Income-Tax Act provides several incentives for individual assessees to save and invest in certain
ways.
CA Vikram S. Mathur (GFSU - Lecture series)

Financial Statements, Cash Flow and Taxation
• Generally Accepted Accounting Principles, Going Concern Concept /
Principle and Accounting Standards
• Accounting Cycle, Statements of Financial Information and Understanding
Corporate Financial Statement and Reports
• Financial Statement Analysis, Financial Ratio Analysis and Assessing the
Financial Health of an Entity (specially a company)
• Cash Flow, Fund Flow and Analysis, Leveraging: Operating, Financial and
Total, Cost Volume Profit Analysis and Budgeting: Some basic concepts
• Taxation – Entity and Corporate Taxation, Basic concepts and the Relevance
of Taxation Planning in Financial Management

Generally Accepted Accounting Principles
(GAAP)
• Money Measurement Concept
• Separate Entity Concept
• Duality Concept
• Going Concern Concept
• Cost Concept
• Accounting Period Concept
• Conservative Principle Concept
• Realization Concept
• Accrual Concept
• Matching Concept
• Consistency Concept
• Materiality Concept

Going Concern Concept / Principle

Accounting Standards (Domestic and
International)

Indian Accounting Standards (ICAI)

Accounting Cycle (General Accounting)

Accounting Cycle (Business Accounting)

Statements of Financial Information
Extracted from: http://www.learn-accounting.com/business_accounting/L1_1_financial_statements.php
Key points:
- the balance sheet is used to
assess the firm’s financial
position at a point in time
- the cash flow statement and
the income statement are used
to assess performance over the
period
- the cash flow statement
explains the change cash from
the beginning of year versus
end of year
- the income statement shows
the performance over the year
- the statement of retained
earnings shows how beginning
of year retained earnings
increases with net income and
decreases with dividends,
resulting in end of year
retained earnings.

Understanding Corporate Financial Statements
and Reports

Financial Statement Analysis

Financial Ratio Analysis

Assessing the Financial Health of an Entity
(specially a company)

Cash Flow, Fund Flow and Analysis

Leveraging: Operating, Financial and Total

Cost Volume Profit Analysis

Budgeting: Some basic concepts

Taxation – Entity and Corporate Taxation, Basic
concepts

Relevance of Taxation Planning in Financial
Management

Thank you for your patience!!
CA Vikram Shankar Mathur
+91-9998090111 / +91-8460890111
(Available on WhatsApp on both numbers, anytime)
vsmathurco@gmail.com vsmathur@icai.org
FB Page: http://fb.me/fcavsmathur.faculty
Website: http://fcavsmathurfaculty.wordpress.com

Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting

Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting

Recommended

More Related Content

What's hot

What's hot(20)

Viewers also liked

Viewers also liked(13)

Similar to Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting

Similar to Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting(20)

More from Kartik T. Vayeda & Co.

More from Kartik T. Vayeda & Co.(6)

Recently uploaded

Recently uploaded(20)

Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting