Company Accounting - Preparation of Consolidated Financial Statement - Case Study Example

Glaxo SmithKline (GSK) in its most recent annual report of 2010 has disclosed the consolidated financial and notes to the financial statements (Glaxo Smith Kline, 2011, p.... The financial accounting is a process of preparation of financial statements and providing these statements to the external user such as shareholders, banks and creditors, fund managers, and regulators.... The financial statements mainly include Income statement, Balance Sheet, Cash flow statement and Notes to the statements....

Overview of SFAS 154 Objective Mainly the objective of FASB to issue this standard is to bring more convergence with IASB towards the preparation, development and furnishing the financial statement as a high quality single set across the world (Deloitte, 2008).... At times, it also happens that a change in the accounting policy or principle affects the consolidated financial statements of the group as well.... SFAS 154 – Accounting Changes and Error Corrections Introduction Companies are required to follow different accounting policies and principles in respect of their financial reporting requirements....

The acquisition method is predominantly applied to consolidation of financial statement from 2009.... Consolidation of Financial Statements Introduction The acquisition method is predominantly applied to consolidation of financial statement from 2009.... This paper seeks to analyze how the acquisition method compares with the earlier two methods in consolidation of financial statements, its impact on financial statement reporting quality, potential Impact on decision making and International implications of consolidation of financial statements....

e have completed integrated audits of Ford Motor Company's consolidated financial statements and of its internal control over financial reporting as of December 31, 2006 in accordance with the standards of the Public Company Accounting Oversight Board (United States).... The company has two segments, namely automotive and financial services.... The financial services segment consists of vehicle-related financing, leasing and insurance, renting and leasing of cars and trucks and renting industrial and construction equipment and other activities. ...

It may also be observed that such external reporting had given rise to the preparation and presentation of consolidated financial and non-financial statements.... However, later it turned out that Regulations did play a major role in compelling the firms to adopt publication of consolidated financial statements.... alker and Janet Mack 1988) Starting from 1919 various regulations have dealt with the presentation of consolidated financial statements and these regulations affecting the preparation of consolidated statements have become more perspective and authoritative over time....

This classification is used to prepare and present different types of financial statements such as statement of financial position, statement of comprehensive income, statement of changes in equity and statement of cash flows.... It is followed by illustrative example representing how Royal Dutch Shell prepares and presents its consolidated statement of comprehensive income.... This accounting standard is comprised of information necessary for preparing and presenting the financial statements....

The major sub-headings appearing in this report are the reasons why net income differs from net cash flow during the same financial period; the difference between direct and indirect method of cash flow statement.... reparation; a two-year comparative analysis of the Vivendi Universal France Media's and Lagardere Sca France Media's cash flow statement; and lastly, the analysis of the strategies implemented by the two companies with regard to cash flow statement analysis. ...

Among the financial documents affected by the change in the standards, including income statement and balance sheet beside the effects it has on the financial ratios among other intricate features of a business.... Moreover, the writer investigates some of the existing financial documents in the company in order to fully examine its financial performance.... The company's global presence demands the creation of synchronous financial statements among other vital documents....