The following paper will talk about the income statement and what the income statement tells about the company including why this statement is important and what business decisions can be made using the income statement. Also, the paper will talk about the balance sheet and what the balance sheet tells about the company. Also, the reason the balance sheet is important and what business decisions […]

Financial statements are an important source of information to multiple groups of people. These people may belong within the organization or they may be outsiders. The internal users of financial statement include managers, financial analysts, CFOs and accountants. Whereas external users may include government agencies, such as tax agencies and the securities and exchange commission, financial consultants, investors, creditors, etc. Now there are certain limitations […]

Introduction Anglo American Plc. is a publicly traded firm listed at the London and Johannesburg stock exchanges, and headquartered at the UK. It is one of the largest mining companies in the world with operations in North and South America, Australia, Japan, India, Brazil and other Asia and Europe. The company has a portfolio of different products including iron and manganese; metallurgical and thermal coal; […]

It is extremely important that companies to maintain financial statements. These companies can be large, medium or large sized operating in either public or private sector. Once the transactions of a company are identified and recorded, the following four financial statements are prepared: Income statement This is also known as profit and loss statement or earnings statement. It presents the revenues and expenses and shows […]

Financial Statements for Internal Reporting Purposes vs. Financial Statements for External Reporting Purposes It is common in most companies to maintain two set of financial statements; one being used/presented for internal reporting purposes and another for reporting externally. Internal reports are used primarily to aid management in the decision making process throughout the course of the business. These are subject to internal audit to make […]

Financial Statements are summaries of monetary data about an enterprise. The most common annual financial statements include the balance sheet, the income statement, the statement of changes of financial position and the statement of retained earnings. The statements are used by management, labor, investors, creditors and government regulatory agencies. The shareholders are mostly concerned with the performance of the company stocks in the market, which […]

For a business owner, their main goal is to make a profit, and become successful so they can have a long future. In order to do that, he or she will have assets that will outweigh their liabilities and expenses, to gain a profit in the company. In a company there are four financial statements (Balance sheet, Income statement, Retained earnings statement, and Statement of […]

Case 10-2 1. Ida needs to test the U. S. commercial building for recoverability under both U. S. GAAP and IFRSs. Recoverability test is one of the requirement tests for impairment. As a result, we need to verify if impairment should be recognized. 2. The impairement is $600,000. GAAP methodology of determining impairment uses a two-step recoverability test. Step one, requires a company to estimate […]