StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Review of Financial Statements - Assignment Example

Cite this document
Summary
The author examines the merger which is a transaction where one company acquires the assets and liabilities of another one. The author describes assets, liabilities and financial statements. The author states that income statement may be affected if acquiring firm has to expense out earlier losses. …
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.2% of users find it useful
Review of Financial Statements
Read Text Preview

Extract of sample "Review of Financial Statements"

b) Liabilities: Since acquiring company also acquires the liabilities of the acquired company, therefore, the liabilities of acquiring company will be affected too. In this case, also all type of liabilities accounts i.e. current and non-current liabilities accounts will be affected. For example, accounts purchases, sundry current liabilities, interest payable, bank loans, long term debt, etc 2) The financial statements which will show the impact of the transaction at the time of merge will be balance sheet and cash flow statements.

Since in merger a firm acquires another firm, therefore, the balance sheet will record the changes in the assets as well as the liabilities of the firm and the resulting changes in them. Another financial statement which will be affected by this is the cash flow statement which will record the movement of any cash paid to the owners/shareholders as the consideration for the merger. (Warren, Reeve, & Duchac, 2008) 

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Review of Financial Statements Assignment Example | Topics and Well Written Essays - 250 words, n.d.)
Review of Financial Statements Assignment Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/finance-accounting/1576161-review-of-financial-statements
(Review of Financial Statements Assignment Example | Topics and Well Written Essays - 250 Words)
Review of Financial Statements Assignment Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/finance-accounting/1576161-review-of-financial-statements.
“Review of Financial Statements Assignment Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1576161-review-of-financial-statements.
  • Cited: 0 times

CHECK THESE SAMPLES OF Review of Financial Statements

Challenges in Auditing

According to Woods (2009, cited in Kornberger, Justesen and Mouritsen, 2011) the companies often face downturn, when their financial statements are not audited properly and thus it threats the future developments of the company.... Thus, greater focus is to be provided to the volatility of the accounting numbers than to audibility of the traditional financial statements.... During the period of financial crisis, it is hard to find papers that are audited by the large firms, national audit boards and the professional bodies....
4 Pages (1000 words) Literature review

Regulatory Framework for Financial Reporting

The paper "Regulatory Framework for financial Reporting" explains the named framework is needed to ensure that there is consistency across financial standards in various countries, also helps to define financial parameters more clearly as compared to statutory provisions, which provide a more generalized set of rules.... hellip; The financial regulatory framework in the UK went through significant reforms in 1990-91.... There have been several changes in the international arena that have also necessitated changes in the financial regulatory framework....
6 Pages (1500 words) Literature review

The IASB Standard-Setting Process

The article “The IASB standard-setting process: Participation and perceptions of financial statement users” has been authored by George Georgiou and published in the British Accounting Review (Page 103-118) in Feb 2010.... Key findings indicate that lobbying by financial statement users is more than that indicated by the number of comment letters.... There are a couple of brief references to the importance of report users such as the one given below although articulating in greater depth would have helped drive the message better (The British Accounting review 42 (2010), p....
6 Pages (1500 words) Literature review

Fair Value Accounting, Financial Economics, and the Transformation or Reliability

The primary author of this paper, Michael… The paper was originally delivered as a lecture at Chartered Accountant's Hall London on 15th October 2009 with a title “Fair value: the influence of financial economics on The article concludes that four conditions necessitated the significance of fair value accounting.... Further, the paper examines the rise of financial economics as a challenge to and as a cultural resource for financial accounting.... One of them was the cultural authority of financial economics....
3 Pages (750 words) Literature review

Materiality in Auditing

hellip; The main goal of auditing a financial statement is to allow auditors to state opinions on the preparation of financial statements and whether, in material respects, the financial statement is prepared according to applicable frameworks of financial reporting.... The decision and responsibility are separate from what the entity itself makes during the preparation of financial statements.... Materiality has been variously defined as referring to the entity, to which the concept is being used, including the decision-making body, the information's recipient, the financial statement's user, the auditor's addressee, a reasonable investor, and the average prudent investor....
9 Pages (2250 words) Literature review

Corporate Accountability and Governance

The goal of this review is to discuss the issue of environmental contamination by business organizations in Australia.... Specifically, the writer of the review seeks to evaluate the effectiveness of the team production theory of corporate governance in regulating environment pollution.... These guidelines require banks to investigate and review the hazardous waste conditions of properties held as security by the lending institution....
6 Pages (1500 words) Literature review

The Issue of Business Risk

"The Issue of Business Risk" literature review indicates that there was a general need for a radical change in the auditing process as the conventional and more traditional methods failed to offer the desired results and insulate the companies from the effects of taking excessive risks....
6 Pages (1500 words) Literature review

Accounting Classification and the International Harmonization Debate

It indicates that there is a sense of harmonization with the help of IFRS that supports the ease of transfer of financial information, preparation of financial statements, and comparability of financial data between different countries (Wang, 2014).... IFRS have been designed in a way that countries all over the… world can report their financial statements in a uniform or a standard format so that there would be a better chance to observe comparability in the financial reporting and interferences of different countries....
3 Pages (750 words) Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us