Financial Reporting & Analysis
Letting us take care of preparing your financial statements can relieve you from  some of your stress at year end and can be a real source of competitive advantage to your firm in these changing times.

Some of the services we provide include:

- Cash Flow / Budgeting
- Monthly, Quarterly, Year-End Review

- Management Reporting
- Financial Analysis
- Balance sheets and income statements
- Accounts receivable reports
- Sales reports
- Purchase reports
- Accounts Payable reports
- Account registers (Checking, Assets, Liabilities)
- Sales tax reports
- Payroll reports

Objective of financial statements

A financial statement should reflect true and fair view of the business affairs of the organization. As these statements are used by various constituents of the society / regulators, they need to reflect true view of the financial position of the organization.

 

Elements of financial statements

The financial position of an enterprise is primarily provided in the Statement of Financial Position. The elements include:

  1. Asset: An asset is a resource controlled by the enterprise as a result of past events from which future economic benefits are expected to flow to the enterprise.
  2. Liability: A liability is a present obligation of the enterprise arising from the past events, the settlement of which is expected to result in an outflow from the enterprise' resources, i.e., assets.
  3. Equity: Equity is the residual interest in the assets of the enterprise after deducting all the liabilities under the Historical Cost Accounting model. Equity is also known as owner's equity. Under the units of constant purchasing power model equity is the constant real value of shareholders´ equity.

The financial performance of an enterprise is primarily provided in an income statement or profit and loss account. The elements of an income statement or the elements that measure the financial performance are as follows:

  1. Revenues: increases in economic benefit during an accounting period in the form of inflows or enhancements of assets, or decrease of liabilities that result in increases in equity. However, it does not include the contributions made by the equity participants, i.e., proprietor, partners and shareholders.
  2. Expenses: decreases in economic benefits during an accounting period in the form of outflows, or depletions of assets or incurrences of liabilities that result in decreases in equity.

Revenues and expenses are measured in nominal monetary units under the Historical Cost Accountimg model and in units of constant purchasing power (inflation-adjusted) under the Units of Constant .

 

IFRS financial statements consist of (IAS1.8)

 

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