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Study On The Analysis Of Financial Statement's Present Condition And Development

Posted on:2005-07-05Degree:MasterType:Thesis
Country:ChinaCandidate:Y Q ChenFull Text:PDF
GTID:2156360122495631Subject:Forestry Economics and Management
Abstract/Summary:PDF Full Text Request
With the development of economy and society, the business language_accounting become more and more important. Accompanly, more and more benefiters (or potential benefiters) of an enterprise are concerned about the analysis of financialstatements_--Balance Sheet, Income Statement and Statement of Cash Flow, and . Atpresent, there are some methods and techniques such as ratio analysis and trend analysis and item analysis, which have been using during the process of analysis to know the enterprise's profit ability, the ability of paying-debts, the turnover ability and the survival and development; besides, the Du Pont System is a popular analysis system and methods, especially to the analysis of Balances Sheet and Income Statement. But , there are some natural limitations in financial statement itself and reporting and analysis: The theory is apart from practice, the ratio methods is the primary methods, which has natural shorts; the history cost; the false of the financial statements, the analysis of statement of cash follow not used widely, ROI is not a very effect ratio; many analyzers pay no attention to the notes to the accounting...which effect the analyzers' qualitative judgment, so it is necessary to take actions to lessen the limitations and improve the quality of finalysis. First of all, enterprises must provide true reports of financial statements, adding more useful informations such as the human resources and the quality rate of product in the financial statements; and, with the base of history cost, using fare value to less the effect of inflation in financial ststement. Second, developing and improving the Du Pont System ;with people realizing that "CASH" is important than the accounting income, it is necessary for them to pay emphasis on the analysis of Statement of Cash Flow. Third, in order to know the operation and financial conditions and cash flow of an enterprise, there are two methods of analysis ?Free Cash Flow and EVA .which can improve the effect of scientifical and right decision. At last, analyzing the accompanying notes of financial statement, which provide additional information about certain important items and dollar amounts, and audit report.
Keywords/Search Tags:analysis of financial statements, statement of cash flow, analysis of free cash flow, the analysis of EVA
PDF Full Text Request
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