Preparation And Presentation Of A Company 's Financial Statements

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

The standard statements focus on accounting income for the entire corporation, not cash flows, and the two can be quite different during any given accounting period. However, for valuation purposes we need to discount cash flows, not accounting income. Moreover, since many firms have a number of separate divisions, and since division managers should be compensated on their divisions' performance, not that of the entire firm, information that focuses on the divisions is needed. These factors have led to the development of information that

Among the tools required for every business to survive and thrive, the ability to maintain a regular self-examination holds an indispensable place. The size of the business in question is almost of no consequence, only the potential complexity of the self-examination changes. A prime tool for such self-examinations is the family of related financial reporting that has become nearly universal in western businesses: the income statement, the balance sheet, and the statement of cash flows. This trio of reports enables management and owners to carefully examine the holdings and liabilities of their business so they may make

The purpose of this assignment is to increase your understanding of the information contained in a firm’s financial statements and of the relationship between the statements. As you study financial accounting, we will focus on using financial information in a meaningful way, to understand the firm’s past performance and project its future performance.

The Board of Directors declared a quarterly cash dividend of $0.20 per share on the company’s common stock. This increase in dividend was payable to shareholders of record on closed of business on May 11, 2016. In the first quarter of this year, the company brought back 1.0 million shares of its common stock at a cost of $50.0 million, with the expectation that it will return its free cash flow to shareholders in this year in the form of dividends and share of repurchases. The Cheesecake Factory knows the importance of success, therefore they schedule conference calls and webcast live on the company’s website throughout May 26, 2016. This ensure stakeholders that the company was not in the red, and continue to profit.

Two additional areas that concern management are accounting policies and FASB standards changing. Accounting policies dictate that “properties to be disposed of are reported at the lower of their carrying amount or fair value, reduced for estimated disposal costs, and are included in other current assets” (F. Phillips, 2006). The Landry’s acquisitions increased the properties to approximately 300, but as the disposal of the properties occurs the loss will be significant.

All property, plant and equipment are stated at cost and depreciated over their useful lives. All depreciation expense incurred is derived using the straight line method. We do not depreciate our land. We estimate our useful life

The financial statements that a company produces can be used to help evaluate the financial condition of the company. The main statements are the income statement, the balance sheet and the statement of cash flows (Harper, 2012). The company's performance can be evaluated in a number of different ways. The most important are that the company can be evaluated against its own past performance, and it can also be evaluated against other firms in the same industry.

To be recognized, revenues must be realized or realizable and earned. The revenue-earning activities include delivering or producing goods, rendering services or performing other activities that constitute its ongoing major or central operations, and revenues are considered to have been earned when the entity has substantially accomplished what it must do to be entitled to the benefits represented by the revenues [SFAC No. 5, “Recognition and Measurement in Financial Statements of Business Enterprises”] (Streaser, Sun, Zaldivar, & Zhang, 2014). The SEC, (Staff Accounting Bulletin No. 104) believes that revenue is generally realized or realizable and earned when the following criteria are met:

The four financial statements used in accounting are the income statement, the balance sheet, the shareholder statement of equity, and the cash flow statement. “The special importance of financial situations is given by the usefulness of the information supplied by them; this information is often the only one that the users can access and on which they have to ground their economic decisions and to substantiate the manner of using the financial resources” (Marioara, 2013). These statements comprise of the core components of an organizations accounting. The information in these documents are used by investors and lenders to determine the profitability and stability of the enterprise. While each statement has its own distinct purpose, they are all interrelated in some way. This article will address how these statements are related, how they are used by key stakeholders, as well as the importance of each statement individually.

An instance where fair value might be the only solution forward is the valuation of derivatives, which are a category of financial instruments that includes options, swaps and forwards. This statement could be supported by Financial Accounting Standard Board which has mandated that all derivatives that meet the assets’ or liabilities’ definitions should be recognized in financial statement and reported at fair value in 1991. The Board also believes that the fair value of derivatives could be reliably determined in an active and well-informed market. Furthermore, the adoption of historical cost accounting may not be appropriate as many derivatives have a historical cost of zero, thus it would provide irrelevant information to

Companies gather various information, including financial statements and other reports as a way to track their performance compared to past years. This information is also used to communicate with stakeholders about various topics depending on the reporting style. One type of such reporting is a business unit reporting where organizations gather information about separate divisions of the company to see if each division is functioning properly. There are separate accounts for each segment, so the company can examine if each division is operating at a loss or profit. By creating separate accounts, business reporting provides accurate reports on a company’s performance, based on the accumulation of all division information, for the

“How do you explain to an intelligent public that it is possible for two companies in the same industry to follow entirely different accounting principles and both get a true and fair audit report?” - M. Lafferty

This paper prepared the relation of operating cash flow and accruals with security returns. Transforming cash flows into earnings is a consequence of the accrual adjusting process, and information which provided from earnings related to operating activities is incremental in compare to information provided by cash flows. Members of the financial community have always had a challenge with the usefulness and reliability of accrual. Since the accrual process is according to historical cost and because of various Generally Accepted Accounting Principles (GAAP) which could be selected and used by managers in order to prepare financial reporting, reported earnings could be manipulated. The author is looking to know in the vision of accountants, do accruals provide more information than cash flows to help investors’ estimation about future cash flows? Rayburn stated that “if accruals have no

In this report will analyse budgets and make appropriates decisions and explainn the calculation of unit costs and make pricing decisions using relevant informations. And than this report will assess the viability of a project using investment appraisal techniques and discuss the main financial statements. Compare appropriate formats of financial statements for different types of business. Interpret financial statements using appropriate ratios and comparisons, both internal and external.