ACCTING 1002 Lecture Notes - Financial Statement Analysis, Financial Statement, Financial Analysis

• School: University of Adelaide
• Department: ACCTING - Accounting
• Course: ACCTING 1002
• Professor: Nurmalisa Chi Alie

Document Summary

Financial statements analysis- is the process of applying analytical tools to a company"s financial statements to understand the business"s financial health. This analysis should help all stakeholders, or other interested parties better understand a business"s performance and position and therefore make better decisions for and about that business. Enabling good decisions is considered the goal of financial accounting. Financial analysis requires the following: financial information, standards of comparison, tools of analysis. Reporting entities must file their annual financial statements with the asic. All publicly listed companies must also prepare additional financial statements each year and file them with the asx. Financial statements contain current and prior-year data for comparative purposes and are the starting point of any analysis. In addition to financial statements reporting entities also produce other information which can enhance financial analysis. E. g. a company"s notes to its financial statements, provide further information on items on the statements and discolours not included in the statements.