Financial Statement DifferentiationEssay Preview: Financial Statement DifferentiationReport this essayIn todays society, businesses and organizations complete various financial statements that will inform management, creditors, and investors of its financial status. Corporations complete financial statements, such as the income statements, balance sheets, retained earnings statement, and statement of cash flows on a monthly or annually basis. Financial statements must indicate true, accurate, and precise information according to the rules and regulations mandated by the United States of America government. Management, creditors, and investors review the financial statements that will provide him or her with precise information to answer his or her questions.
A Financial Statement Assessment (FLAS) is a test of the financial condition, performance, and prospects of a company or enterprise. The FLAS can assess a financial position, performance, or prospects based on a financial statement that was reviewed as part of a financial statement that was made by a third party for a fee. Financial statements are designed to provide information for companies and enterprise investors to evaluate the financial situations of businesses that are in high risk areas in a given market. A particular company or enterprise needs to know, for certain situations, whether a financial position is good or bad for all involved, and how quickly it is possible to do so.
The information that a company needs to view on a report from the financials will be based on the following requirements:
The company or enterprise must have a physical website, or other online access service that is maintained by the company or enterprise and is not subject to the corporate information disclosure or service requirements of the U.S. Department of the Treasury Under applicable law, a web-based service, such as a web-based email, telephone or e-mail application (as defined by federal rules), that is capable of providing accurate and accurate information to a company or enterprise at regular intervals, or is otherwise accessible electronically, to a third party without unreasonable delay. As with any report by a third party, any information submitted with a financial report must be accompanied with the specific reasons and specific instructions stated in the financial statement so that an employer or a mutual fund company may be able to provide and obtain timely and accurate information that will assist it in evaluating its competitors and their products or services and the business outcome of the operations and related business in the following way: 1. This information has to be presented on an annual basis to any person who is responsible for the company or enterprise responsible for its financial statement. 2. The company or enterprise must not include personal information or the information of any entity or entity, including a public company, with an account with any of its participants, including as to whether it is based in another country or operating in a foreign country or is based on an international organization. 3. The information required is made on a timely basis, with as little delay and with a view to ensuring confidentiality as possible.
A Financial Statement Analysis (FLASA) is a quantitative assessment of a company’s financial status and prospects if the company or enterprise finds it important to provide detailed financial information to any potential buyers, employees, investors, suppliers, or consultants for a period of time before initiating a transaction. Any information requested by a buyer, employee, investor, consultant, or other potential investor must be complete and complete, be fully vetted and certified, and in the correct form in order to be provided to buyers, employees, investors, suppliers, or consultants in the event of a breach of a confidentiality requirement for a particular transaction.
A financial statement analysis is conducted with the intent that the company or enterprise report the information that will be provided to it and will provide the investor with information on potential buyers, employees, investors, suppliers, or consultants to meet the obligations of the company or enterprise and will, in the opinion of
Income StatementWhen businesses and organizations want to identify how the company is operating for a certain period of time the business or organization will complete an income statement. According to Kimmel (2009), the income statement identifies a business or organizations revenues and expenses; the expenses are subtracted from the revenues, which determine the company net income or net loss (p. 12). A business or organization revenue is the income the company made through sales or services rendered. The company expenses are the costs to produce and sell a product or service (Kimmel, p. 11, 2009). The income statement is used to determine if a business or organization is successful or unsuccessful. In addition, the income statement would be of most interest to investors, creditors, and management. The income statement would be of most interest to investors, creditors, and management because the income statement provides useful information that investors, creditors, and management can use to forecast the companys future income. Creditors want to make sure the business or organization will be able to repay its loan and have income to operate. In addition, managers utilizes the income statement when making pricing decisions and evaluating the companys profitability and growth.
Balance SheetBusinesses and organizations develop a balance sheet to identify a business or organizations assets, liabilities, and stockholders equity. “The balance sheet presents the companys financial position as of a specific date” (Kimmel, 2009, p. 14). When developing a balance sheet the business or organization would list its assets first then its liabilities and stockholders equity. The assets of a business or organization are resources the company has purchased to conduct business such as, furniture, property, and equipment. A companys liabilities is it obligations to creditors and vendors. The stockholders equity consists of two components, the companys common stock, which is the new shares of stock the company sold and retained earnings. The retained earnings are the portion of the net income the company retained (Kimmel, p. 10, 2009). The balance sheet would be of most interest to management and creditors. The balance
of a business may be used as the basis for determining the cost to the company of assets, liabilities, and shares. It has been hypothesized that the balance sheet would contain a valuation of a company’s debt-sharing obligations, interest on which is borne by the company. If the business would be included in the balance sheet, then the valuation would be based on the net income that the company earned on transactions that did not result from assets, liabilities, and shares being sold. It has been proposed that the total assets from the first 10 shares may be distributed to shareholders, which would provide the balance sheet with a total shareholding that is used to make decisions about the amount of the company’s financial asset. In such a way, the balance of the fund would be used with respect to the equity in the business. When the business would be included in the balance sheet the expense of providing services would be limited to providing the business with additional services on a periodic basis. The amount of the company’s capital cost would be less than that of the business if the company were a publicly traded company. The stockholders of companys, which are equity holders, would pay their respective equityholder’s share of the expenses of providing such services, with all of their equity held in the fund. An issuer, a government agency or corporation having the legal capacity to issue shares of common stock is not necessary to constitute a company as a creditor. Where a company has debt-sharing obligations there is no obligation to acquire them in order to be deemed a creditor under the law of the country where ownership and operating of the share may be located. However when the company has debts of less than 1 percent of the outstanding principal amount, the company has a claim on the debt. The company has not paid its fair share of such debt at the end of the year; or provided the service of notifying creditors or any other person of any such debt until it has been paid. In deciding where this is done, the board of directors may take into consideration the circumstances in which the company has acquired or is currently carrying into effect certain liabilities. The board of directors has to determine when the necessary cost of providing certain services will be reached, and when such the amount of cost or the amount of the cost of servicing is at its disposal. The interest on the equity that would be borne will be charged to the creditor or any other person to be paid for providing such services, and the proceeds will be paid to any credit reporting company that makes available the information that would enable such a credit rating to be applied to the liability incurred. An insurer may not disclose or provide personal information to a third party so that the information could be identified as a source of information that would mislead the buyer, such as a buyer’s credit reports, a credit report filed for the creditor and reports filed in the name of the creditors. The issuer is a governmental entity (i.e., a corporation) that is permitted to disclose or provide personal information to the government under section 6, 7 and 8 of the Federal Money Laundering Act or under section 431 of the Financial Institutions Code. The issuer must give the government advance notice of the disclosure or disclosure and, if the disclosure or disclosure required is refused, an advance judgment may be ordered. The debt may include payments of interest which can only be paid by the issuer under the law of the country in which the debt was issued. The debt will be repaid by creditors, not by the issuer. The debt is a “bona fide” interest for its outstanding term. The creditor may have a right to refuse or reduce the amount of the debt to pay the remaining term. The creditor can do this as long as the creditor has obtained the full interest on the debt by making public the amount of the debt as stated in the creditor’s