Unit 5 Accounts MBA

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Unit 5

MBA/BBA/B.com /B.Tech /UGC Net

By
Dr. Anand Vyas
Financial Statement Analysis
• Financial statement analysis is the process of
reviewing and analyzing a company's financial
statements to make better economic decisions
to earn income in future. These statements
include the income statement, balance sheet,
statement of cash flows, notes to accounts
and a statement of changes in equity
Recent Types of Accounting: Common
Size Statement;
Common size financial statements commonly
include the income statement, balance sheet,
and cash flow statement. Common size financial
statements reduce all figures to a comparable
figure, such as a percentage of sales or assets.
Each financial statement uses a slightly different
convention in standardizing figures.
Comparative Balance Sheet
•A comparative balance sheet is a statement
that shows the financial position of an
organization over different periods for which
comparison is made or required. The financial
position is compared with 2 or more periods to
depict the trend, direction of change, analyze
and take suitable actions
Human Resource Accounting
Forensic Accounting
•Forensic accounting, forensic accountancy or
financial forensics is the specialty practice area
of accounting that investigates whether firms
engage in financial reporting misconduct.
Forensic accountants apply a range of skills and
methods to determine whether there has been
financial reporting misconduct.
Accounting for corporate social responsibility.
•Social accounting is commonly used in the context of business, or corporate
social responsibility (CSR), although any organisation, including NGOs,
charities, and government agencies may engage in social accounting. Social
Accounting can also be used in conjunction with community-based
monitoring (CBM).
•Corporate social responsibility is the viewpoint that a business should be
more aware of its impact on society and the environment. The intent is to
deliver positive outcomes for all stakeholders in the business that result in
long-term sustainability, not just a positive return for its shareholders. The
actions taken should extend beyond the narrow interests of the firm and go
beyond the basic requirements of the law.
• Social responsibility accounting is a
commitment to improvement, managing the
business process to produce an overall
positive impact on society.
Trend Analysis of manufacturing Service &
banking organizations,
• Trend Analysis And Trend Analysis In The
Manufacturing Industry. Trend Analysis: A
trend analysis is an aspect of technical
analysis that tries to predict the future sales
of the organization based on past data
Case Study and Workshops in analyzing Balance sheet.

• The main technique is financial ratio analysis.


Financial ratio analysis uses formulas to gain
insight into a company and its operations. For
a balance sheet, using financial ratios (like the
debt-to-equity ratio) can provide a good sense
of the company's financial condition, along
with its operational efficiency.
• The balance sheet provides information on a
company's resources (assets) and its sources
of capital (equity and liabilities/debt). This
information helps an analyst assess a
company's ability to pay for its near-term
operating needs, meet future debt
obligations, and make distributions to owners.

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