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Analysis Of Financial Health Of Imax Corporation

Better Essays

Andres Arroyave
FAP Part IV
April 17, 2015

I Introduction
1.
This report consists of an analysis of the financial health of IMAX Corporation according to its 2014 financial statements: income statement, balance sheet, and statement of cash flows. IMAX Corporation is a theatre company internationally recognized as the world leading entertainment technology company. While IMAX focuses on film development, production post-production, and distribution, those are only a few segments of its company 's operations.

2.
According to the economic principles people face trade-offs, and thus, people compare the cost of giving something up to its benefit. In the past few years, there has been a growing preference to find movie online to watch …show more content…

It reflects the focus on renovating or attempting to further improve its business plan.

II Income Statement Analysis
1.
The income statement is a financial statement that measures all of a company’s revenues, gains, expenses, and losses incurred to essentially generate a net income. Drawing from all forms of revenue and expenses including, the income statement represents the most accurate projected profitability of a company.

2.
Other than the net income incurred in 2014, IMAX Corporation has been on a steady incline since 2012. Between 2011 and 2012, the net income increased from $15,260 to $41,337 and since then has hit a plateau. The net income recorded in 2013 increased only $2,778, and since then, has shown a decrease in net income of $4,379. IMAX brands itself as an internationally recognized entertainment technology company; however, it is evident that the growing presence of online movie streaming has negatively impacted IMAX’s motion picture income.

3.
IMAX Corporation’s generates revenue from multiple sources, and so, according to IMAX’s 10-k, it has follows different manners of recognizing revenue. Revenue received or considered receivable in an arrangement is allocated based on the accounting guidance in the Lease Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC), the Guarantees Topic of the FASB ASC, the Entertainment – Films Topic of the

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