What can financial statements tell readers?
Financial statements can be used for just about anything the reader wants them to be used for! Financial statements can tell the reader about the economic resources owned by the company, the solvency and liquidity, as well as their ability to obtain financing.
Financial statements also provide a high-level of the operations of the business. Financial statement that contain an MD&A section will provide more information on Managements view of the business and future plans for the business.
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What must be included in a full set of financial statements under US GAAP?
Under U.S. GAAP, financial statements that are issued with the Security & Exchange Commission (SEC) must include an income statement, balance sheet, cash flow, statement of changes in owner’s equity, and statement of comprehensive income. The SEC issued regulation S-X and regulation S-K. These regulations govern what financial and non-financial information is required to be […]
What is a balance sheet?
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What is MD&A?
Sounds a lot like the drug MDMA doesn’t it? Well MD&A is definitely not a drug. MD&A stands for “Management Discussion & Analysis”, and it’s a section that is included in a company’s financial statements that are filed with the SEC (10-K and 10-Q). MD&A is where the company’s management team expresses their views on […]