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마인드 맵 갤러리 Chapter 1 of Accounting, Section 1 Basic Concepts of Financial Analysis, Section 2 Financial Information
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Chapter 1 of Accounting, Section 1 Basic Concepts of Financial Analysis, Section 2 Financial Information
Higher education self-study exam, financial statement analysis notes, detailed introduction, comprehensive knowledge, I hope it can be helpful to everyone!
2024-03-14 20:56:11에 편집됨
Chapter 1 of Accounting, Section 1 Basic Concepts of Financial Analysis, Section 2 Financial Information
- 추천 사항
- 개요
Chapter 1 Section 1 Basic concepts of financial analysis
development path
Financial analysis begins with "The Banker"
meaning
It is the relevant stakeholder of the enterprise based on the enterprise's financial report and other economic data.
Conduct a comprehensive analysis of the company’s financial position, operating results and cash flow
Financial reports: balance sheet, income statement, cash flow statement, statement of changes in owner's equity, notes
Four tables and one note
The place of financial analysis
The importance of financial analysis status mainly reflects: the complexity of business structure, the complexity of organizational form, and the specialization of financial information. publicization of business
Purpose of Financial Analysis
1. Investment decisions, credit decisions, sales decisions, macroeconomics
2. Provide a basis for internal business management performance evaluation, supervision, and selection of business managers.
Financial analysis content
1. Interpretation of corporate statements
Quality analysis (how consistent the data in the table is with the actual economic conditions of the company, the stability of the data in different periods, and the overall distribution of data from different companies)
Trend analysis (based on the accounting statements of consecutive periods, based on the data of a certain year/period, calculate the changes of each project in each period to the same project in the base period, observe the changing trends, and reveal the economic nature and development direction of the enterprise in each period {forward or backward }
Structural analysis (structure refers to the interrelationship between the contents of the report, which can provide an overall understanding of the composition of the company's financial situation, the profit formation process, and the source of cash flow)
2. Solvency Analysis
Enterprise solvency is divided into: short-term solvency and long-term solvency
Corporate debt repayment: 1. Related to the debt structure {current liabilities/non-current liabilities}, 2. The company's future profitability
3. Operational Capacity Analysis
Refers to the efficiency of enterprise asset utilization and circulation
Including: "Current Assets Operating Capacity Analysis" and "Total Asset Operating Capacity Analysis"
4. Profitability Analysis
Also known as "profitability", refers to the ability of a company to earn profits
Profitability is still the basis for evaluating corporate value. Corporate profitability indicators can also be used to evaluate internal management performance
5. Development capability analysis
The evaluation of enterprise development capabilities is an all-round and multi-angle evaluation process.
6. Comprehensive financial analysis
adapting methods
DuPont analysis
Wall Score
It is to explain the correlation between various financial capabilities and draw conclusions about the overall financial status and effects of the enterprise.
The primary content is: Interpretation of accounting statements
Financial Analysis Meaning of Evaluation Benchmarks The benchmark for financial analysis and evaluation is not unique; Using different benchmarks will lead to different analysis conclusions for the same analysis object.
Types of evaluation criteria
1. empirical benchmark
There is no theoretical support, just the result of simple induction based on facts and phenomena.
Any experience standard is applicable within a certain industry Since empirical standards are established within a certain period of time, the standards will also change with the economic environment and technological changes.
2. Industry Benchmark
It is the average level (better level) of a certain financial indicator of all enterprises in the industry.
Advantages: easy to compare, highly comparable to each other
Note: Although companies are highly comparable, it is difficult to find two companies with exactly the same business operations.
Consider when using: Whether to adjust accounting policy differences between different companies
3. historical benchmark
Refers to the actual value of the enterprise in a certain period in the past. Optional: historical average, best value.
Very comparable
Notice: 1. Even if the comparison results surpass history, it does not mean that the company is in a good operating environment, because as the company progresses, the industry environment also changes, which in turn reduces the company's competitiveness in the industry. 2. When an enterprise reorganizes its business operations, comparability decreases and the original financial data cannot be used. 3. There is no historical benchmark for newly established enterprises.
4. target baseline
It is an ideal standard proposed by financial analysts based on the company's historical financial data and real economic conditions.
Generally use "financial budget" as target baseline
Notice: 1. Corporate budgets are internal information and are not disclosed to the public. External financial personnel cannot obtain or use it. 2. Corporate budgets contain subjective human factors and are difficult to adjust as the economic environment changes. There are problems with objectivity and reliability.
Purpose: Used by internal analysts for evaluation and assessment.
Chapter 1 Section 2 Financial Information
concept
Financial information is the basis for financial analysis (raw materials) The basis of financial analysis is obtaining high-quality financial information
Financial Information Supply Topics
my country's accounting standards require companies to disclose financial reports: "four tables and one note" financial information appraisal report
Balance sheet, income statement. Cash flow statement, statement of changes in owner's equity Note
Note: The financial information appraisal report also forms part of the financial information.
Financial Information Disclosure Format
Financial reports are divided into two parts: accounting statements and notes. Some financial information can be disclosed on the balance sheet or off the balance sheet
Willingness to Disclose Financial Information
voluntary disclosure
The main source of differences in information supply. (The information disclosed has richer connotations)
mandatory disclosure
Disclosure time of financial information
Submit financial reports to the outside world once a year
Financial information demand subject
The subject that requires financial information is generally also the subject of financial analysis.
Demand subjects mainly include:
1. Shareholders and potential investors
Investor demand information: mainly related to corporate value assessment (The main factor affecting corporate value is "future business capability")
Investors also need to pay attention to: investment risks and information focusing on corporate financial security
2. creditor
Creditors pay attention to: the company's ability to repay principal and interest in the future
Creditors are more concerned about: the stability of corporate earnings and the safety of operations
Focus on analyzing the company's "solvency" as well as the company's "credit" and "default risk"
3. internal managers
Internal managers of enterprises are both demanders and suppliers of financial information.
Therefore, managers' financial analysis is more accurate and detailed than the analysis results of external stakeholders of the enterprise.
4. government
As a social public management department, the government’s main source of revenue is “taxation”
Mainly require financial information related to value-added tax, income tax, etc.
5. Enterprise Supplier
Suppliers pay attention to: financial information related to the company’s “credit risk” and “solvency”
(No default risk compared to creditors)
Classification of financial information
According to whether it is provided by the enterprise accounting system
accounting information (accounting report)
External submission information
Regularly submit "Four Forms and One Note" to external relevant stakeholders
Internal reporting information
In addition to regularly disclosing information to the public: the accounting system also compiles accounting information for internal use only
Such as: enterprise cost calculation data and processes, the composition of period expenses, Corporate budget, corporate investment and financing decision information, Internal performance evaluation methods and results of enterprises
non-accounting information
Audit Report
There are four types of audit opinions in the audit report: unqualified opinion, qualified opinion, negative opinion, and disclaimer of opinion.
market information
capital market information
Involving: transaction price, transaction volume Such as: price-earnings ratio, price-to-book ratio
product market information
Involving: sales volume, sales price, market share of enterprise products
macroeconomic information
Generally includes some factors that affect the operation of the overall national economy Such as: inflation rate, GDP growth level, price index, fixed asset investment growth rate, basic interest rate
Corporate governance opinions
Refers to a mechanism of supervision and checks and balances between owners and managers
Financial personnel and analysts obtain information to judge the prospects of the company. Helps determine the effectiveness of information in predicting the future
Information Sources
external information
Information from outside the company is "public information"
Such as: market information, macroeconomic information
inside information
Some of the information within the enterprise is public and some is non-public
Non-public information: corporate cost structure, corporate budget, period expense structure, etc.
This data can only be used in analysis by internal management of the company, and is difficult for outsiders to obtain.
For most financial analysis entities, the starting point of analysis should (and can only) be based on external information and information publicly disclosed within the enterprise.
Quality Characteristics of Financial Information
In accordance with my country's "Accounting Standards for Business Enterprises - Basic Standards" (Three can be one phase, always remember)
reliability
Based on actual transactions or events, ensure that accounting information is true, reliable and complete.
Correlation
The information provided by the enterprise should be relevant to the user's economic decision-making and help the user to evaluate or predict the enterprise's past, present, and future situations.
understandability
Clear and easy to understand and use
Comparability
Vertical comparability: same company in different periods Consistent accounting policies and shall not be changed at will
Horizontally comparable: different companies in the same period
Comparable to each other
Substance over form
It means that enterprises should conduct accounting recognition, measurement, and reporting based on the economic substance of transactions or events, not only based on the legal form of transactions or events.
Such as: financial leasing (financial leased fixed assets are accounted as self-owned fixed assets)
importance
Reflect all significant transactions or events relevant to the financial statements (taking into account the "cost-benefit principle")
prudence
Assets or earnings should not be overstated and liabilities or expenses understated
For example: provision for impairment of assets, provision of depreciation for assets using the accelerated depreciation method, reasonable estimation of possible product after-sales warranty expenses
timeliness
Transactions or events that have already occurred in the enterprise shall be confirmed, measured and reported in a timely manner and shall not be advanced or delayed.
“Timeliness” constrains relevance and reliability