Log in
Accounting
1
answer
0
watching
78
views

Discuss the limitations of financial statement analysis. Whatcan be done to make financial ratios more relevant? How can apotential investor or creditor analyze financial statements in away that can be relied on? Find a minimum of one source thatsupports your position, and include the reference in your post.

Watch
1
answer
0
watching
78
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Nestor Rutherford
Nestor RutherfordLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Company name: ikeGPS Group Ltd

Discussion

Profitability

Introduce why it is important to assessprofitability

Outline the basic ratios used to assess profitability, andprovide an analysis of your selected company’sprofitability

Refer to the appendix where you have calculated or obtainedthe relevant profitability ratios, and your graph.

You could show the graph in the main body of the reportrather than the appendix if you like – however, if you have thegraph in the main body, you do need to discuss it!

Briefly comment on the trends shown by the ratios, and inthe graph

Conclude as to whether or not this company isprofitable

300 – 350 WORDS

Liquidity

Introduce why it is important to assess liquidity

Outline the basic ratios used to assess liquidity, andprovide an analysis of your company’s liquidity position relativeto the previous year

Refer to the appendix where you have calculated or obtainedthe relevant liquidity ratios

Conclude as to whether or not this company is demonstratinggood liquidity

300 – 350 WORDS

Financial Structure

Introduce why it is important to assess financial structure(or gearing)

Outline the basic ratios used to assess financial structure,and provide an analysis of your company’s financial structurerelative to the previous year

Refer to the appendix where you have calculated or obtainedthe relevant financial structure ratios

Conclude as to whether or not the company shows a strongfinancial structure

300 – 350 WORDS

Future plans and Investor informationFuturePlansDiscuss what plans the company has announced to thepublic, and how these have impacted on the share price. Thisinformation can be found from a variety of sources:

Annual report

NZX company research

Newspaper article (preferably recent articles)

Investor Information

Introduce why it is important to assess investorinformation

Outline the basic ratios used to assess investorinformation, and provide an analysis of the trends shown in ‘shareprice performance’ graph

Refer to the appendix where you have calculated or obtainedthe relevant ratios, plus graph

Alternatively, the graph can be displayed in the main bodyof the report

Conclude as to whether or not this company would be a goodinvestment

You must include a discussion on income vs growth

300 – 350 WORDS

Conclusions & Recommendation

Pull together the main points made from each part of thediscussion

Conclusion should not have any new information

Make a recommendation to the prospective investor

You can recommend to buy shares, or not to buy shares in thecompany being investigated

Recommendation must clearly flow from the discussion andconclusions

200 – 250 WORDS

(Use NZX website, from its financial profile, we could get thischart for 4 years.)

Annual report from NZX website, is used to analysis thiscompany.

Inaccurate and unreliable information can spell financialdisaster for businesses and persons who use this information fordecision-making purposes. From the standpoint of a business,accurate and reliable information is necessary in order for apotential investor to have when they are considering investing withthe company. If the information is not accurate and reliable, thiswill potentially harm the investor. Inaccurate financialinformation may be due to the incompetence of the accountant whoprepared the financial statements or due to dishonesty and anattempt to conceal information.

Internal control is the system of policies and procedures that acompany puts in place to provide reasonable assurances that:

The company’s operations are effective and efficient

The company’s financial reporting is reliable, and

The company is complying with applicable laws andregulations

1. In your first post, respond to the followingquestions:

a. How can a business ensure that the employee who is preparingthe financial statements is capable of doing so accurately?

b. What internal controls might you recommend to the company to besure that an attempt to conceal information has not occurred?

c. On a personal note, how do you minimize risk for errors in yourwork? This may include your schoolwork or the work that you do foryour employer.

.

Assignment 2: Non-for-Profit Financial Reporting Review
Due Week 9 and worth 240 points

Select one (1) not-for-profit organization in an area of interest to you and review the financial statements and audit report for the organization. The financial statements and audit report of the not-for-profit organization should be readily and publically available on an active Website.

Write a three to five (3-5) page paper in which you:

Analyze the selected not-for-profit’s financial statements to determine if the statements conform to Financial Accounting Standards Board (FASB) guidance in Statement No. 117, Financial Statements of Not-for-Profit Organizations (FASB ASC 958-205-45). Explain the selected organization’s use of the three (3) fund categories. Recommend at least two (2) areas of potential interest to the stakeholder concerning the status of revenue and expenses.

Analyze the organization’s statement of cash flows. Explain the format that the organization utilizes, including any unique areas of emphasis that differ from-GAAP accounting format.

Compare the organization’s reporting of pledges and contributions to its reporting of exchange transactions. Discuss the funds that are utilized.

Assess the fiscal condition of the selected organization utilizing and interpreting financial indicators, using financial ratios that are widely accepted as being indicative of fiscal health. This assessment should also be expanded to include fund-raising analysis, program review, contributions, and grant analysis and revenue analysis.

Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in