Tag Archives: Financial Statements

The Application of Excel in the Analysis of Financial Statements (Published)

The intuitive interface, powerful data processing function and simple operation skills of Excel, it can meet the different requirements of financial staff on the data from each link of financial management, help enterprise financial managers to convert large amounts of data into data that is easy to analyze and evaluate. This paper takes the financial statements of Cha Cha Food CO., Ltd. from 2012 to 2016 as an example to describe the specific application of Excel in the analysis of financial statements.

Keywords: Excel, Financial Data Analysis, Financial Statements

Determinants of Disclosure Completeness of Financial Statements an Empirical Study in Indonesia (Published)

This study aims to determine the effect of firm size, liquidity, and leverage on the completeness of the disclosure of financial statements on mining companies listed on the Indonesia Stock Exchange in 2010-2014. The data used in this research is secondary data, such as financial statements. The number of companies who researched many as 18 companies over five years, bringing the total number of samples totaling 90 samples. Data analysis technique used is multiple linear regression analysis using software eviews 8.0. The results of this study showed that simultaneous company size, liquidity, and leverage significant effect on the completeness of the disclosure of financial statements. Partially size and liquidity significantly influence the completeness of the disclosure of financial statements, but leverage does not significantly influence the completeness of the disclosure of financial statements

Keywords: : Company Size, Financial Statements, Leverage, Liquidity

The Effect of Audit Report on Investments and Lending Decisions in Ghana (Published)

The Purpose  of this research was to find out  whether loan and investment decisions will differ if  the loan or investment request was accompanied by audited  Financial Statement  from loan and  investments amount granted when the when the loan and investment request is not accompanied by audited Financial Statement.. An experiment involving 68 loan and investment officers was performed.  We manipulated the presence of audited Financial Statement (Audited Vs unaudited Financial Statement.) Our main findings were that the mean loan amount differ when loan application is accompanied by audited accounts from when loan applications are accompanied by unaudited accounts. We also found that investment decisions when accounts are audited differ from investment decisions taken when accounts are not audited. We observed that the mean loan and investment amount was larger when there was an audited Financial Statements

Keywords: Experimental Design, Financial Statements, Investment decisions, Loan decisions

Reliance on Published Financial Statements and Investment Decision Making in the Nigeria Banking Sector (Published)

Financial Reporting Standards and Practices have in the recent past come under great criticisms, demanding that accountants take further steps in ensuring that the true and fair view of the actual worth of business are also incorporated in the financial statements published by them. This was triggered off by an unpresedented line up of corporate failures like that of Enron Corporation, World.com and others coupled with the emergence of the global economic crisis. In Nigeria also, corporate failures and distresses have been witnessed in the banking sector. Evidence was the huge collapse of the Cooperative and Commerce Bank (CCB), Orient Bank of Nigeria, African Continental Bank (ACB) all due to massive accounting related frauds. This problem resulted in the establishment of Asset Management Company of Nigeria (AMCON) to prevent corporate failures particularly in the Nigeria banking sector by acquiring and financially distress companies. This paper is a critical investigation on the degree of reliance of the published financial statements by corporate investors. The study employed survey research design by which data were generated by means of questionnaire administered on one hundred and fifty corporate investors and senior management officials of the selected banks. The descriptive statistics and percentage analysis were used for the data analysis and the hypotheses were tested using t-test statistic. The statistical package for social sciences (SPSS) software version 17.0 was employed in the analysis of data and test of hypotheses. The results reveal that one of the primary responsibility of management to the investors is to give a standardized financial statement evaluated and authenticated by a qualified auditor or financial experts (tcal (16.59) > tcritical (2.353). p < 0.05). It also showed investors do understand the financial statement well before investment decision (tcal (17.306) > tcritical (2.353). p < 0.05). The results of the analysis also indicated that investors depend heavily on the credibility of auditors/financial expert approval of financial statement in making investment decisions (tcal (4.592) > tcritical (2.353). p < 0.05) and as such published financial statement is very important in the investors’ decision making (tcal 74.500 > tcritical 6.314; p < 0.05). It hereby recommended that adequate care and due diligence should be maintained in preparing financial statements to avoid faulty investment decisions which could lead to loss of funds and possible litigations

Keywords: Banking Sector, Decision Making, Financial Statements, Investments, Nigeria