Nature of financial statement analysis. Note that the premium on the issuance of stock is based on the price at which the corporation actually sold the stock on the market. Topic 9 managements discussion and analysis of financial position and results of operations mda 9100 mda objectives last updated. Financial statements or financial reports are formal records of the financial activities and position of a business person or other entity.
They typically include four basic financial statements accompanied by a management discussion and analysis. Summaries status summary of statement no. 34 basic financial statementsand managements discussion and analysisfor state and local governments.
The 4 financial statements. Like the statement of financial position the statement of activities should focus on the organization as a wholealthough fund accounting and reporting by fund groups is not advocated under fasb 117 the statement does not preclude a not for profit entity from providing this disaggregated information by fund groups as supplemental data. Financial statement any report of the financial condition or of the financial results of the operations of a business a government or other organization.
Relevant financial information is presented in a structured manner and in a form which is easy to understand. Back to table of contents. In financial accounting a cash flow statement also known as statement of cash flows or funds flow statement is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents and breaks the analysis down to operating investing and financing activities.
Financial statements are the basis for a wide range of business analysis. The term is most often used in a more limited sense in trade and financial circles to refer to the balance sheet statement of income and.