Professional Documents
Culture Documents
Recommended Book
FSA consists of reformulating reported financial statements, analysis & adjustments of measurement errors, and financial ratio analysis of these two
Scope
Financial Position (Balance Sheet) Profitability Position (Statement of Earnings) Reconciliation of Owners Equity Accounts (Statement of Owners Equity) Cash Inflow & Outflow (Statement of Cash Flow)
Objectives
Providing foundation for evaluating and pricing credit risk & Doing Fundamental Company Valuation
Users of FSA
Creditors: Lenders interested in stability to pay back Investors: Interested in ability to continue issuing dividends Management: Analysis of results for operational purposes Regulatory Authorities: Security & Exchange Commissions (SECP in Pak) to look into conformity to various accounting standards, if a company is publicly held