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Who prepares financial statements?
Accountants, usually
What is consolidating financial statements?
hen a large company acquire one or more small companies then acquiring company is called the parent company and acquired companies are called subsidiary companies so when the financial statements of parent company and subsidiary companies are prepared in one financial statement altogether those financial statements are called consolidated financial statements.
Why is it important to adopt a consistent basis for the preparation of financial statement?
Comparability. It is important to allow users of financial statements to compare statements in order to identify trends within an industry or entity and to assist the relative performance of a company across time and across a specific industry. See IFRS: Frame work for the Preparation and Presentation of Financial Statements (A39- 42) Further as the basis by which the entity prepares its financial statements needs to be disclosed ( And changes in policy elaborated upon) it also inhibits adopting favourable accounting policies on a whim in order mislead users of financial statements
Why suppliers need financial statements?
to see if they trust the company
Must audited financial statements be signed by the auditor?
Yes audited financial statements are jointly signed by auditors as well as management of company as an acknowledgment.
Who prepares financial statements?
Accountants, usually
Who are financial statements prepares for?
financial statements are prepared by accountants to submit to the government for taxation purposes.
What are financial compilation services?
The certified public accountant (CPA) prepares--compiles--financial statements based on information supplied by the company's management.
What is consolidating financial statements?
hen a large company acquire one or more small companies then acquiring company is called the parent company and acquired companies are called subsidiary companies so when the financial statements of parent company and subsidiary companies are prepared in one financial statement altogether those financial statements are called consolidated financial statements.
What is the difference between consolidated and parent company statements?
Comparative financial statements compares one set of financial statement with another set of financial statements while consolidated financial statement is prepared where in company there is parent and child company relationship exists to join the financial statements of parent and child company as a single financial statements.
What is the difference between annual and interim financial statements?
Annual financial statements are the financial statements dated as of the company's fiscal year-end and reports the results of the previous 12 months of activities. Interim financial statements are the financial statements prepared for those periods of time (monthly, quarterly, etc.) between the company's annual financial statements. Assume a company has a June 30th fiscal year-end. The company would issue annual financial statements dated 06/30/07, 06/30/08, etc. However, the company's 09/30, 12/31, and 03/31 quarterly financials would be termed interim financials.
On a company's set of financial statements?
What's your question
Why is it important to adopt a consistent basis for the preparation of financial statement?
Comparability. It is important to allow users of financial statements to compare statements in order to identify trends within an industry or entity and to assist the relative performance of a company across time and across a specific industry. See IFRS: Frame work for the Preparation and Presentation of Financial Statements (A39- 42) Further as the basis by which the entity prepares its financial statements needs to be disclosed ( And changes in policy elaborated upon) it also inhibits adopting favourable accounting policies on a whim in order mislead users of financial statements
Why suppliers need financial statements?
to see if they trust the company
What is a unconsolidated balance sheet?
When there is parent subsidiary relationship exists and in that case if separate financial statements are prepared by both parent and subsidiary company those statements are called unconsolidated statements.
What is the difference between accountant and auditor?
An accountant prepares a company's financial statements and reports. They provide a company with its economic situation. An auditor is usually an independent examiner who reviews a company's financial records.
What is the function of the accounts office?
To ensure that financial events are accurately and appropriately recorded in the company's financial and or financial statements.
