5. Do the footnotes adequately explain the key accounting policies and their logic?
6.
7. Any footnotes adequately explaining the key accounting policies and their logic? YesThe TSR measure has been chosen on the basis that it is the most commonly accepted method of measuring company performance and therefore well understood; and is able to measure growth in shareholder wealth. The terms of each grant have not altered.
8. PHARMAXIS Any adequately explanation of its current performance? Yes 2008 2007 Dividend franking account Amount of franking credits available for the subsequent year 84 627 61411 The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for: (a) franking credits that will arise from the payment of the current tax liability,
9.
10. Any footnotes adequately explaining the key accounting policies and their logic? Not adequate Any adequately explanation of its current performance?Yes Cash flow and fair value interest rate risk The Group’s main interest exposure arises from bank accepted commercial bills held.
11. Steps in Performing Accounting Analysis Step 5: Identify Potential Red Flags -Some issues that warrant gathering more information include: Unexplained transactions that boost profits Unusual increases in inventory or A/R in relation to sales Increases in the gap between net income and cash flows or taxable income
