Model essay on financial data analysis 1: On the content and analysis of financial statements under the new accounting standards Paper Keywords: financial statements, new accounting standards, fair value analysis
Abstract: After the accounting reform in 2006, the financial reporting system in China was established, and the securities market in China made great progress in standardization. Investors floating in the capital market become the main users of financial reports. Combined with the relevant contents of the new accounting standards, this paper analyzes the main changes of financial statements, and holds that the key to the analysis of financial statements at this stage is to correctly understand the changes and connotations of financial statements, correctly understand the influence of fair value measurement, pay attention to the influence of professional judgment on the quality of financial statements, and put forward some countermeasures.
I. Introduction
Financial statements are an integral part of financial reporting procedures. Financial statements generally include balance sheet, income statement, cash flow statement, statement of changes in owner's equity and its notes. Financial statements do not include the report of the board of directors, the statement of the chairman, the opinions and analysis of the management of the enterprise, and similar items that may be included in the financial report or annual report. Users of financial statements include investors, employees, lenders, suppliers and creditors, the government and the public. They have different requirements for the information provided in financial statements. Enterprise management has an important responsibility for the preparation of enterprise financial statements.
(A) the purpose and significance of the study
The purpose of financial statement analysis is mainly to analyze and study the financial status, operating results and cash flow of enterprises by using financial statements such as balance sheet, income statement and cash flow statement.
Report users use financial statements for different purposes, and they all hope to get information from financial statements that is helpful to their economic decision-making.
research method
The main method of financial statement analysis is qualitative analysis. Qualitative analysis is mainly based on the environment outside the financial statements and the internal quality of the enterprise to grasp the credit status of the enterprise. Qualitative analysis mainly relies on the forecaster's rich practical experience and subjective judgment and analysis ability to infer the nature and development trend of things, which is a basic method of predictive analysis. This method is mainly applicable to some matters without or without complete historical materials and data.
Two, the old and new accounting standards in the financial accounting report specification comparison
(1) name
The name of the old accounting standard is financial report; The name of the new accounting standard is financial accounting report.
(2) content
The contents of the financial report under the old accounting standards are written documents reflecting the financial status and operating results of enterprises, including balance sheet, income statement, income statement, statement of changes in financial status, notes to accounting statements and financial statements; The content of the financial accounting report of the new accounting standards refers to the documents provided by enterprises that reflect the financial status of enterprises on a specific date and the accounting information such as operating results and cash flow during an accounting period.
(iii) Objectives
The old accounting standard is that accounting information should meet the requirements of national macroeconomic management; The new accounting standards are to meet the needs of all parties concerned to understand the financial situation and operating results of enterprises and to meet the needs of enterprises to strengthen internal management.
Three, the definition and classification of accounting statements under the new accounting standards
(A) the definition of accounting statements
An accounting statement is an accounting statement provided by an accounting entity that reflects the financial position and operating results of the accounting entity, including a balance sheet, an income statement, a cash flow statement, a schedule, notes and a statement of changes in financial position. Financial statements are the main part of financial reports, excluding directors' reports, management analysis and financial statements, which are included in financial reports or annual reports. External statements refer to financial statements. The symmetry of internal statements is an accounting statement compiled in accordance with accounting standards and disclosed to owners, creditors, governments and other external users.
(B) the classification of accounting statements
Financial statements can be classified according to different standards.
1. According to the clients, it can be divided into external reports and internal reports.
External statements are financial statements that enterprises must prepare regularly and submit to investors, finance and taxation departments and higher authorities. Or announced to the public according to regulations. This is a formal, significant and standardized financial statement. It requires a unified report format, preparation time and index system. Balance sheet, income statement and cash flow statement are all external statements.
Internal statements are financial statements compiled by enterprises according to the needs of internal management and used by internal managers. It does not need a unified format, nor does it have a unified index system. For example, the cost report is an internal report.
2. The importance of providing information according to the report can be divided into the main table and the attached table.
The main table is the main financial statement, which refers to the financial statement that provides comprehensive and complete accounting information and can basically meet the different requirements of various information demanders. At present, there are mainly three tables: balance sheet, income statement and cash flow statement.
The attached table is a subsidiary report, which refers to a report that supplements some important information that cannot or is difficult to reflect in detail in the main table. The existing schedules mainly include: profit distribution table and division table, which are the schedules of income statement; The list of VAT payable and the list of assets impairment reserve are the schedules of the balance sheet. There is a cross-check relationship between the main table and related schedules. The main table reflects the main financial situation, operating results and cash flow of the enterprise, and the attached table is a further supplement to the main table.
3. According to the preparation and submission time, it can be divided into interim financial statements and annual financial statements.
Generalized interim financial statements include monthly, quarterly and semi-annual financial statements. Narrow interim financial statements only refer to semi-annual financial statements.
The annual financial statement is a financial statement that comprehensively reflects the operating results, cash flow and year-end financial status of an enterprise throughout the fiscal year. Enterprises must prepare and submit annual financial statements at the end of each year.
4. According to different reporting units, it can be divided into basic financial statements and summary financial statements.
Grass-roots financial statements are financial statements compiled by independent accounting grass-roots units, which are used to reflect the financial situation and operating results of their own units.
Summary financial statements refer to financial statements compiled by superiors and management departments by summarizing their own financial statements and grass-roots reports submitted by subordinate units.
5. According to different topics, it can be divided into individual financial statements and consolidated financial statements.
Individual financial statements refer to the statements prepared by the parent company and its subsidiaries in the holding group, which are used to reflect the financial status and operating results of the parent company and its subsidiaries respectively.
Consolidated financial statements are financial statements that reflect the operating results, financial status and capital changes of enterprise groups on the basis of enterprise groups composed of parent companies and subsidiaries and individual financial statements compiled by parent companies and subsidiaries.
Four. Content and Analysis of Balance Sheet under New Standards
(1) tool
The original short-term investment is accounted by cost method, and the contents of long-term investment and long-term creditor's rights investment with reliable fair value are listed in? Short-term investment, long-term equity investment? Long-term bond investment? In the project, but now they are included according to the management's intention? Trading financial assets? Available for sale financial assets? And then what? Held-to-maturity investment? In the project. What has been added under the original current liabilities? Trading financial liabilities? Project.
? Trading financial assets? Available for sale financial assets? It is measured at fair value. Among them? Trading financial assets? Changes in fair value are included in current profits and losses; ? Available for sale financial assets? Changes in fair value are included in capital reserve; And then what? Held-to-maturity investment? Measured in amortized cost. In addition to the transaction costs of transactional financial assets, they are included in the book value.
Above? Trading financial assets? When accounting, the change of its fair value is included in the current profit and loss, which affects the current operating profit of the enterprise; And then what? Available for sale financial assets? When accounting, its fair value is included in the capital reserve, which affects the total owner's equity of the enterprise in the current period.
(2) Investment real estate
Investment real estate: refers to real estate held to earn rent or capital appreciation or both. The reportable investment real estate originally included in inventory, fixed assets and intangible assets is listed separately in the balance sheet.
When an enterprise implements the investment real estate standards for the first time, it should usually adopt the cost model to measure the investment real estate subsequently. Only when certain conditions are met, that is, there is conclusive evidence that the fair value of all its investment real estate can be obtained continuously and reliably, can the fair value model be used for subsequent measurement. If the cost model is changed to the fair value model, it shall be treated as a change in accounting policy, and the retained earnings at the beginning of the period shall be adjusted according to the difference between the fair value and the book value when the measurement model is changed. Investment real estate that has been measured by the fair value model shall not be changed from the fair value model to the cost model.
The above-mentioned listing of reportable investment real estate originally included in inventory, fixed assets and intangible assets in the balance sheet will affect the asset structure of enterprises, especially for enterprises that include a large number of investment real estate in inventory. After the implementation of the new standards, the current assets of enterprises decrease and the current ratio decreases.
(3) Fixed assets
Original fixed assets are recorded at the cost at the time of purchase. The new accounting standards have changed greatly: the cost of fixed assets should consider the expected abandonment cost, and the cost of deferred fixed assets outside normal credit conditions should be determined on the basis of the present value of purchase price.
The present value of the purchase price of fixed assets should be determined by choosing the appropriate discount rate according to the price paid in each period, which will increase the value and depreciation of fixed assets and lead to the decrease of profits.
(4) Income tax items
China's income tax accounting adopts the balance sheet debt method, which realizes the boundary between assets and liabilities in income tax accounting.
From the point of view of assets and liabilities, the book value of assets represents the total amount of economic benefits that assets bring to enterprises during a certain period of continuous holding and final disposal, while its tax basis represents the total amount that can be deducted before tax according to the provisions of the tax law during this period, that is, due to the temporary difference between the book value of assets and its pre-tax deduction, the taxable income in subsequent periods can be offset. Reducing the inflow of economic benefits generated in the future period is lower than the pre-tax deduction allowed by the tax law, resulting in economic benefits that can offset the taxable amount in the future period, which should be recognized as deferred income tax assets. For example, if the book value of an asset is 5 million yuan and that of tax basis is 6 million yuan, the enterprise can deduct 6.5438+0.5 million yuan according to its own economic interests in the future, and the taxable income in the future will decrease, resulting in deductible temporary differences, which should be recognized as deferred income tax assets, and the book value of liabilities is greater than its tax basis, which means that according to the tax law, all or part of future expenses related to liabilities can be paid from the future. On the other hand, if the book value of an asset is greater than its tax basis, then the economic benefits generated by the asset in the future period cannot be fully deducted before tax, and the difference between them needs to be taxed. Produce taxable temporary differences. For example, the book value of an asset is 5 million yuan, and that of tax basis is 3.5 million yuan. The difference between them will increase the future taxable income and payable income tax, so the related deferred income tax liabilities should be determined. The book value of a liability is less than its tax basis, which means that the amount that can be deducted before tax in the future period is negative, that is, it should be increased on the basis of taxable income in the future period, increasing taxable income and taxable income in the future period, resulting in taxable temporary differences. The related deferred income tax liabilities shall be determined, recognized as deferred income tax assets or deferred income tax liabilities according to the difference between the book value and tax basis, and listed separately in the balance sheet.
The above deferred income tax assets and deferred income tax liabilities will affect the increase of enterprise assets and liabilities.
(5) Owner's equity project
Owners' equity includes paid-in capital, capital reserve, surplus reserve and undistributed profit. Among them, surplus reserve and undistributed profit are also called retained earnings.
Financial assets and available-for-sale financial assets measured at fair value and whose changes are included in current profits and losses lead to an increase in shareholders' equity; The inclusion of minority shareholders' rights and interests in owners' rights and interests leads to the increase of owners' rights and interests; The net decrease in shareholders' equity is due to the liabilities arising from the confirmation of employee stock options and dismissal compensation.
Verb (abbreviation of verb) Content and analysis of income statement under new accounting standards
(A) the contents of the income statement under the new accounting standards
The main business income, main business cost and other business income and expenditure items in the original income statement are merged into the new income statement, in which the operating income includes the main business income and other business income, the operating cost includes the main business cost and other business costs, and the business taxes and surcharges include the taxes and surcharges in the original main business and other business expenses. The new income statement cancels the main business profit items in the original income statement, and increases the asset impairment loss, basic earnings per share and diluted earnings per share items.
1. Basic earnings per share and diluted earnings per share
The basic earnings per share only consider the ordinary shares actually issued at present. When calculating the basic earnings per share, the numerator is the net profit attributable to ordinary shareholders in the current period, that is, the net profit that can be distributed to ordinary shareholders in the current period or the amount of net loss that should be shared by ordinary shareholders; The denominator is the arithmetical weighted average of the issued ordinary shares in the current period, that is, the number of ordinary shares issued in the initial period is adjusted according to the product of the newly issued or repurchased ordinary shares and the corresponding time weight. The calculation and presentation of diluted earnings per share is mainly to avoid misleading information that may be caused by inflated earnings per share. For example, a company issues convertible corporate bonds for financing. Because of the existence of stock conversion options, the interest rate of these convertible bonds is lower than that of ordinary bonds under the same normal conditions, thus reducing the financing cost and relatively increasing the amount of basic earnings per share under the same operating performance and other conditions. It is necessary to consider the influence of convertible corporate bonds to calculate and present diluted earnings per share in order to provide more comparable and useful financial indicators.
2. Asset impairment loss
According to the requirements of the new accounting standards, listed companies are not allowed to make use of the asset impairment reserve to artificially adjust the profits of each period, or to turn back a lot after the huge amount was accrued in the previous period, and to adjust the profits at will, nor to change the way and proportion of accrual at will. The change of accrual method and accrual proportion belongs to the change of accounting estimation. Except for the impairment of assets such as inventory, accounts receivable and available-for-sale equity instruments that can be recovered with conclusive evidence, the impairment of non-current assets such as fixed assets, intangible assets with definite amortization period, investment real estate and long-term equity investment is not allowed to be reversed.
(B) Correlation analysis of income statement
The calculation and presentation of the above earnings per share and diluted earnings per share are mainly to avoid misleading information that may be caused by inflated earnings per share; The new standard stipulates that, except for the impairment of assets such as inventory, accounts receivable and available-for-sale equity instruments, the impairment of non-current assets such as fixed assets, intangible assets with clear amortization period, investment real estate and long-term equity investment is not allowed to be reversed, which increases the asset impairment loss and reduces the current operating profit of the enterprise; When enterprise investment real estate is measured by fair value model, investment real estate is not depreciated or amortized, thus reducing costs and having a positive impact on profits.
Further analysis of uncertain factors in financial statements of intransitive verbs
(A) Analysis of the impact of fair value
The introduction of fair value makes accounting more closely integrated with complex capital market and macro environment. When the market interest rate changes, the revaluation value of assets or liabilities changes accordingly, thus affecting the financial situation and profitability of enterprises.
(2) Tax impact
A large number of fair values are used in the measurement of assets and liabilities, which makes the difference between the book value determined by accounting standards and the tax basis stipulated by tax law even greater. Under the balance sheet deferred method, the income tax impact of these differences will be recognized as deferred income tax assets or deferred income tax liabilities, and income tax expenses will be determined on this basis. If deferred income tax assets are involved, we should also consider the taxable income that is likely to be obtained in the future.
Seven. counter-measure
(A) familiar with and understand the content of the new accounting standards and its impact
In the analysis of financial statements, users should reasonably and accurately evaluate the influence of the new standards on the analysis of financial statements according to their own knowledge and the information disclosure of listed companies. Even valuable listed joint-stock companies, the quality of assets of listed companies is the guarantee to determine shareholders' income. On the one hand, the value of the enterprise is variable, and the change of accounting policy will have a positive impact on the current profit; On the other hand, the change of accounting policy affects the profit of accounting policy, but it will not affect the cash flow of enterprises. Therefore, the implementation of the new accounting standards will not change the intrinsic value of enterprises in a substantial sense, but the new value of some assets reflected by fair value may mislead investors, thus attracting the risk of investment decision. In addition, when analyzing accounting statements, we should fully understand the contents of the notes of accounting statements and combine them with the data of the statements, so as to understand the situation reflected in the statements more accurately.
(B) the application of financial ratio
1. Calculation of financial ratio
Due to some changes in some items and their connotations in the report, some original financial ratios can only be calculated with relevant data and notes. For example, net profit rate of sales, gross profit rate of sales, cash ratio and asset turnover rate.
2. Pay attention to the application of cash flow correlation ratio.
After the implementation of the new accounting standards, the importance of net profit and net assets to the analysis of financial statements will decrease, while the importance of cash flow analysis will increase. When analyzing statements, we should pay attention to the analysis of cash flow and compare it with profit indicators through data such as net cash flow.
Concluding remarks
This paper compares the differences between the old and new accounting standards, analyzes the influence of the new accounting standards from different angles such as balance sheet, income statement and cash flow statement, and puts forward corresponding measures for its influence.
In the design process, the author fully realized the difficulty and importance of compiling financial and accounting statements. This job is not for everyone. Only after a long period of accumulation and summary, combined with relevant accounting books, can we make a considerable and valuable financial accounting statement for reference and make correct decisions.
References:
[1] Task Group on Accounting Standards for Enterprises. Interpretation of enterprise accounting standards [M]. Dalian: Dongbei University of Finance and Economics Press, 2006.
[2] Huang Shizhong. Impact analysis of new accounting standards [J]. Accounting Newsletter: Comprehensive Edition, 2008(2).
[3] Fan. Query on accountant appointment system [J]. Accounting Monthly Report, 1998( 10).
[4] Compilation Group of Accounting Department of Ministry of Finance. Interpretation of accounting standards for enterprises [M]. People's Publishing House, 2008: 2 10-234.
[5] Ministry of Finance. Basic accounting work standard [M].2005.
[6] Financial rules of financial enterprises [M]. China Financial Publishing House, 2006.
[7] Guo Jian, Wei Xiaolan. The Influence of New Accounting Standards on Financial Analysis [J]. Accounting Monthly, 2007(3).
Model essay 2 on financial data analysis: Thoughts and methods on financial statement analysis [Paper Keywords] Financial statement analysis focuses on thematic analysis indicators.
[Abstract] The purpose of enterprise financial statement analysis is to identify and provide various trends and relationships contained in the figures of accounting statements, and provide financial information such as solvency, profitability, operational capacity and development capacity of enterprises for all parties concerned, especially investors, so that users of financial statements can make judgments and make relevant decisions, and provide basis for financial decision-making, financial planning and financial control. The author expounds the main points of financial statement analysis in detail in combination with his own work.
First, the interpretation of financial statement analysis
The so-called financial statement analysis is based on financial statements, adopting scientific evaluation standards and applicable analysis methods, and following standardized analysis processes.
Order, through the comparative analysis of the financial status, operating results and cash flow of enterprises, so as to judge, evaluate and predict the financial status, operating conditions and operating performance of enterprises. The purpose of enterprise financial statement analysis is mainly to provide information users with more intuitive information they need. At the same time, for different information users, the purpose of enterprise financial statement analysis is different. For investors, we can decide whether to invest by analyzing the assets and profitability of enterprises; For creditors, it is necessary to analyze the risks and returns of loans to decide whether to lend to enterprises, and to analyze the liquidity and profitability of assets to understand their short-term and long-term solvency. For operators, financial analysis is to improve financial decision-making, operating conditions and operating performance. Due to the differences in the analysis purposes of financial statements, it is decided that different analysis purposes may adopt different analysis methods and focus on different assessment data indicators.
Second, when reading financial statements, we should focus on the theme.
1. Increase and decrease relationship between accounts receivable and other receivables. If the same amount of the same company is adjusted from accounts receivable to other accounts receivable, it means that it is possible to manipulate profits. 2. The relationship between accounts receivable and long-term investment. If the decrease of a company's accounts receivable leads to the increase of the company's long-term investment, and the increase and decrease amount is close, it indicates the possibility of profit manipulation. 3. The amount of prepaid expenses and property losses to be handled. If the amount of prepaid expenses and property losses to be handled is large, there may be a problem of delaying the inclusion of expenses in the income statement. 4. Comparison of loans, other receivables and financial expenses. If the company's other payables to affiliated units are large and the financial expenses are low, it means that it is possible to use affiliated units to reduce financial expenses.
Three. Analysis of key indicators in financial statements
(1) solvency index analysis. The solvency of an enterprise is an important symbol reflecting its financial situation and operating ability. Solvency is an enterprise's ability to bear or guarantee due debts, including the ability to repay short-term and medium-and long-term debts. Generally speaking, the debt repayment pressure of enterprises mainly includes the following two aspects: first, the repayment of general debt principal and interest, such as various long-term loans, bonds payable, long-term payables and various short-term settlement debts; Second, all kinds of rigid taxes payable are mandatory for enterprises. The main financial indicators of enterprise's solvency are current ratio, asset-liability ratio and so on. Current ratio (current assets/current liabilities) is an index to evaluate the ability of enterprises to repay current liabilities with current assets. If the current ratio is too low, enterprises may face difficulties in paying off due debts. The high current ratio shows that the enterprise's asset utilization rate is low, the inventory is overstocked and the turnover is slow. The asset-liability ratio (total liabilities/total assets) reflects the degree to which the assets of the enterprise guarantee the debts. The smaller the ratio, the stronger the solvency of the enterprise. It is generally believed that the asset-liability ratio should be less than 50%, that is, the debt should be less than the owner's equity, which varies according to different industry standards.
Example analysis: suppose that the creditor's rights in the total assets of listed company A account for 75% of the total assets, and the amount receivable from the parent company accounts for more than 80% of the total creditor's rights. In July, 2000, the parent company of Company A was in danger of bankruptcy and liquidation due to its serious insolvency. So how should we evaluate the quality of creditor's rights existing in Company A and its influence on the future of Company A? Example analysis: The creditor's rights of Company A account for 75% of the total assets, and the amount receivable from the parent company exceeds 80%, that is, the creditor's rights receivable from the parent company of Company A exceed 75% of its total assets? 80%=60%。 At present, the parent company of Company A is facing bankruptcy liquidation, and 60% of the total assets of Company A are at risk of bad debts, so the quality of its creditor's rights is extremely poor.
(2) Analysis of profitability indicators. Enterprises need to be profitable to be valuable. The purpose of starting a business is to make profits, and increasing profits is the most comprehensive goal. As an investor, the main concern is the rate of return of enterprise investment. For ordinary investors, they are concerned about the company's dividends and dividends. For investors who have the control right of enterprises, they will think more about how to enhance the competitiveness of enterprises, expand market share and pursue the sustained and stable growth of long-term interests. The indicators to measure the profitability of enterprises mainly include gross profit margin of sales and profit margin of capital. Gross profit rate of sales (gross profit rate/sales revenue) reflects how much money can be used for expenses and profits in each period after deducting sales costs from sales revenue per 1 yuan. Generally speaking, the higher the gross profit margin of sales, the stronger the profitability of the main business and the stronger the market competitiveness of the main business. Capital profit rate (total profit/total capital) can measure the efficiency of asset use and reflect the investment effect as a whole. If the profitability of an enterprise's assets is higher than the average profitability of society and industry, it will be easier for enterprises to absorb investment and be in a more favorable position for development.
(3) Analysis of operational capability indicators. The function of operational capability is to contribute to the value of various economic resources, that is, asset turnover rate and turnover rate, and then it will have an impact on the realization of value-added goals through this function. In this sense, operating ability not only determines the company's solvency and profitability, but also is the core of the whole financial analysis work. Through the analysis of operational capacity, we can not only evaluate the management efficiency of enterprises, but also judge whether they have profitability. The indicators to measure operational capacity mainly include the turnover rate of current assets and the turnover rate of fixed assets. Among them, the indicators reflecting the turnover rate of current assets of enterprises are: turnover rate of current assets and turnover days of current assets. The former is the ratio of net operating income to the average balance of current assets in a certain period, that is, the average number of times accounts receivable are converted into cash in this year; The latter is the turnover rate expressed in time, which is called the average payback period of current assets. The turnover rate of current assets is a positive indicator. Generally speaking, the higher the proportion, the faster the collection and the shorter the time limit. Strong liquidity of assets and strong short-term solvency. The turnover days of current assets are counter-indicators. Generally speaking, the lower the value of this indicator, the better. The main index reflecting the turnover rate of fixed assets of enterprises is the turnover rate of fixed assets, which is the ratio of net operating income to average net fixed assets in a certain period and is an index used to measure the utilization efficiency of fixed assets. This indicator is a positive indicator. Generally speaking, the higher the ratio, the more turnover completed with the same fixed assets, and the better the utilization effect of fixed assets.
(4) Analysis of development ability index. Development ability refers to the development prospect and potential of an enterprise in the next year. The indicators reflecting the development ability of enterprises mainly include: the growth rate of operating income and the average growth rate of profits in three years. The growth rate of operating income refers to the ratio of the growth of operating income in the current period to the total operating income in the previous year. It reflects the increase and decrease of sales revenue of enterprises and is an important index to evaluate the growth and development ability of enterprises. If the index is greater than 0, it means that the business income of the enterprise has increased this year. The higher the index value, the faster the growth rate and the better the market prospect of the enterprise. If the index is less than 0, it means that the products of the enterprise have no market, high quality and shrinking market share. The average growth rate of profits in three years shows the growth of corporate profits for three consecutive years and the stability of benefits. The higher this index, the more enterprises accumulate and the stronger their sustainable development ability.
The analysis of financial statements depends on the notes to the statements, paying attention to the history and main business of the enterprise, paying attention to the influence of changes in accounting treatment methods on profits, and analyzing the influence of affiliated enterprises and related parties on profits, so as to fully understand and master the financial situation and operating results of the enterprise. At the same time, the analysis quality of accounting statements is also influenced by the experience and professional ability of analysts.
refer to
Zhao Mei. My opinion on the analysis method of enterprise financial statements and its application [J] Economic and Trade Times (Chinese Journal), 2007, (S3)
[2] Zhang Siju, Chen Wenjuan. On the problems existing in the analysis of financial statements and the improvement methods [J] Modern Business, 2009, (0 1)