Financial Statement Analysis Assignment Help
Part I
Both of your presentations were outstanding and displayed your level of financial knowledge and expertise in the area of financial statement analysis. You have been asked to be a guest lecturer in a course at your alma mater college, CTU. As a result, you will have an opportunity to explain to students how they should tackle financial statement analysis. Prepare a presentation that will include the steps you went through to thoroughly analyze the financial statements so that you could make the recommendation-keeping in mind that you want to simplify the process as much as possible. You do not need to include how to do the financial calculations, but rather how you determined the recommendation based on the information you were given. Provide a list of potential "consultants" and resources they could reference to help them get through the assignments you have just completed.
Part II
Leaders and financial teams in organizations have an obligation to provide financial reports to meet the requirements and guidelines provided by a number of regulating bodies. In addition, they must uphold a high level of professional ethical standards when preparing reports that reflect the health of the organization to its stakeholders.
Include in your PowerPoint Presentation:
At least 2 ethical issues that managers and financial teams face when preparing financial reports.
What regulations should be considered when making a decision about each issue?
Provide an ethical solution for each issue that you introduced.
Never miss your chance to excel in Financial Statement Analysis Assignment Help solution! Avail affordable and reliable Assignment Help solution services of Expertsmind.com
Introduction
The financial statement always contains three essential reports and they are balance sheet, cash flow statement and income statement. A combination of these three reports creates an overall image of the company's financial position (Wanielista, et al, 2018). The following discussion is based on the financial statement and how it can be made easier for everyone to access and understand.
Accounting standards
Accounting standards are a major tool for analyzing and utilizing the power of finance in an economy. It helps in bringing transparency and defines as the basis of financial accounting practices and policies. Accounting standards have its roots connected with all the entity's finance. It includes assets, liability, equity for the shareholder and many more. Allowed method for depreciation along with assets classification and revenue recognition can be considered as proper examples of accounting standards (Gong, 2018).
Role of manager and financial team
It is the task of financial manager to provide their expertise in the matter of finance for healthy operation in the company. The manager always deals with complex modeling and analysis for this reason the manager needs to have good knowledge of the financial system and procedure.
Ethic significance in the financial statement
Ethical issues are highly important in the preparation of the financial statement for different reasons and some of them are listed below.
Safeguarding the confidential information of the organization and its stakeholder
Accurate financial record of the organization
Communication of correct information to the stakeholders
Consequences of poor Ethic in financial reporting
Some of the consequences of poor ethics in financial reporting are listed below.
The bad image of the company
Losing trust of the investor
Negative impact on the share price of the company
Legal repercussions
The high amount of payment of penalties and fines
Identification of two ethical issues
Two ethical issues which have been identified are listed below.
• Conflict of interest
• Confidentiality of the financial information
Description of Conflict of Interest as an ethical issue
Conflict of interest is that ethical issue under which the manager and financial team may manipulate the financial information due to the fulfillment of his other interest for making such manipulation. For example, the manager and financial team have got a portion of net profit from the company and for this reason, the manager and financial team may manipulate the financial statement and show an inflated net profit of the company.
Description of confidentiality of financial information as an ethical issue
Confidentiality of financial information as an ethical issue means that the manager and the financial team can leak the confidential information of the company to the outsider for his own selfish motive. For example, there are few financial information of the company which till now not known to many people inside or outside the company but will be published in the annual report and after which the share price of the company is expected to increase, the manager and the financial team can leak that information to outside and demand cash for it.
Ethical solution
Ethical solution is that solution to a certain issue which is being made in accordance with the code of conduct and ethical standard of the profession who will implement the solution.
An ethical solution to Conflict of Interest as an ethical issue
The ethical solution of conflict of interest as an ethical issue is withdrawing from a position or post which create a conflict of interest with certain another aspect of the individual's life in the time of fulfillment of the responsibilities of that individual position or post.
An ethical solution to Confidentiality of the financial information as an ethical issue
The ethical solution of conflict of interest as an ethical issue is withdrawing from a position or post which create a conflict of interest with certain another aspect of the individual's life in the time of fulfillment of the responsibilities of that individual position or post.
Regulation that should be considered when making a decision about the first issue
Every now and then, the board of ethics provides statement-suggesting members of the organization and shareholders have the right to be benefited from further analysis and instruction concerning a specific issue of ethical conduct. Every professional working in their respective field has an ethical responsibility and obligation to safeguard the confidentiality of information regarding the clients under their supervision. The rules and regulations should always protect the client but should not ignore the law system in the country. Any act that may cause social discrimination should be reported to the law system in the country without any restrictions.
Regulation that should be considered when making a decision about the second issue
A conflict of interest takes place when a matter that is in a person's best interest do not go hand in hand with another person's interest. There can be another situation when it may occur. For example, if a person is liable to answer to two or more parties and one of the party's needs are at odds with the rest. In law and business, carrying fiduciary responsibility to a party is considered to have a duty of loyalty. However, there are sometimes when professional auditors are paid to review the financial status of the company.
Recommendation
Every financial statement provided to the shareholders should keep one thing in mind and that is the Owner's equity. It is calculated by subtracting liabilities from assets. Keeping a clean record of all the liabilities and assets always help the company with preparing a balance sheet. Perhaps, making single ledger entry system is one of the simplest forms of understanding the financial status of the company. However, with the modern tax system, the need for a complex method is higher.
Conclusion
The above statement provides a close look into the accounting system and how it can be made simpler for everyone. A detailed analysis of the method from the shareholder's perspective as well as the manager's perspective has been provided.
We Help Students to improve their grades! Avail TOP Quality Financial Statement Analysis Assignment Help solution and Homework Writing Services at Cheaper Rate!