An Accounting Manager For Spi

Financial statement measures the financial performance, liquidity and strength of the firm, it is important

You have been named the Chief Financial Officer (CFO) of a two year old company, CUNY Analytics. Financials have been prepared by a bookkeeper. As CFO, you responsible for the preparation of accurate financials, analysis and review of the financials before they are released and communication of the results of your company to banks, investors, creditors and the government, as necessary.

The information found in financial statements outlines the financial activities of that company, and can help managers, creditors, and investors make many important decisions.

It is important to notice that Special Purpose Entities should be carefully reviewed by each member of the auditing team. Even more after it was proven that most of Enron’s fraudulent accounting practices involved SPE. SPE allows companies to reduce their

Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;

The CFO or chief financial officer oversees three directors: a human resource director, senior director or controller, director of accounting, and all receptions. He or she is basically over day to day operations on the business side of the business; handling finical problems paying bills and overseeing the employees of the company. Another depart that helps and is on the same operational side of the franchise is the Operations and Information department. Which is ran by a vice president, that oversees; technology, operations, risk management, and has a staff accountant.

Through indicating the profit margin, return on assets and return on equity to measure sales, assets and other factors, shareholders also can know the global profit performance of the firm and indicate that how the condition of company is.

Information given by an entity 's financial performance grant users of the financial statements to assess:-

The users of the general purpose financial statements of the SMEs are interested in some specific disclosures (Deegan 2014). For example, these disclosures are solvency, liquidity, measurement uncertainties, choices of accounting policy, encountered transactions, short-term cash flows, liabilities recognition, obligations and contingencies (Australian Accounting Standard Board 2010). Following the requirements of IFRS for SMEs, users can interpret the information which they need with less unrelated disclosures. The designation of IFRS for SMEs bring transparency by allowing users to improve economic decisions due to the quality of financial information.

A company prepares financial statement to provide information about its financial position and performance. This information is in turn used by a wide range of stakeholders (such as investors, banks, customers, suppliers etc) in making economic decisions with respect to respective economic interest in the company. Typically, in terms of ownership by investment in shares of the company, shareholders though own the company but do not manage it. Therefore, the shareholder and other such stakeholders to get comfort in taking sound decision need independent assurance from the auditors that the financial statements reflect true and fair view of the company affairs in all material respects. Hence, in order to enhance the level of

I am writing this memorandum in order to bring it to your concern that we have been facing certain situations in our company post the US economy downturn in 2012 when we had purchased a significant number of used and nearly up-to-date POS systems which were financed by obtaining $10 million loan from the First National Bank (FNB). I understand that it is imperative for IRCS to keep a minimum interest coverage ratio of 3.0 as failure to do so will lead to violation of the debt covenants and FNB would call off the loan resulting in immediate repayment of the loan. However, First National Bank (including the loan officer and other staff) being the company’s creditor requires us to provide them with the financial statements that are in compliance

The financial statements are very useful to all this group of user. Explain each of them;

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ

1. To be able to provide data to meet the immediate needs of its clients.

This report mainly used quantitative method to conduct the research about the utilization of special purpose financial statements (SPFSs). It excluded entities whose equity interests traded in a public market, such as listed companies (paragraph 2), because it is unambiguous that those entities need to lodge general purpose financial statements (GPFSs).