Statement Description Financial statements mainly reflect the operating results and financial status changes of enterprises in a certain period. Financial statements can be viewed from six aspects to find problems or make judgments.
Look at the income statement first to compare whether the income growth in the next two years is within a reasonable range.
Like the Yinguangxia incident, the income statement has increased by hundreds of percentage points over the previous year, which is not credible and the problem is very obvious.
Those enterprises whose growth rate is between 50%- 100% should pay special attention.
Second, look at the bad debt reserve of enterprises. Some enterprises have sold their products, but the money can't be recovered, but it is not mentioned or insufficient on the books. Such income and profits are not true.
Third, see if long-term investment is normal. Some enterprises will have some other investments besides their main business, depending on whether this investment is related to their main business. If there is no correlation, then the risk of this investment is great.
Fourth, see if other receivables are clear. On the balance sheet of some enterprises, other receivables are in a mess, and many old accounts are put in it, many of which cannot be collected.
Verb (abbreviation for verb) to see if there is any related transaction. We should pay special attention to the fact that major shareholders borrow from listed companies in the middle of the year, and then use bank loans to pay back the money at the end of the year, so that the practice of major shareholders borrowing can not be reflected in the statements at the end of the year.
6. See whether the cash flow statement can normally reflect the flow of funds, and pay attention to the reasons and matters of future cash injection and outflow.
Extended data:
Financial statements are the main part of financial reports, and the accounting information they provide plays an important role, mainly in the following aspects: 1. It comprehensively and systematically reveals the financial situation, operating results and cash flow of an enterprise in a certain period, which is helpful for managers to know the completion of various task indicators of their own units and evaluate their operating performance, so as to find problems in time, adjust their business direction, formulate measures, improve their management level, improve their economic benefits and make economic forecasts and forecasts.
2, is conducive to the national economic management department to understand the operation of the national economy.
By summarizing and analyzing the financial statements provided by various units, we can understand and master the economic development of various industries and regions, so as to macro-control economic operation, optimize resource allocation and ensure the stable and sustainable development of the national economy.
3. It is beneficial for investors, creditors and other stakeholders to master the financial status, operating results and cash flow of the enterprise, and then analyze the profitability, solvency, investment income and development prospects of the enterprise, and provide decision-making basis for its investment, loan and trade.
4, is conducive to meet the financial, taxation, industry and commerce, auditing and other departments of enterprise management supervision.
Through financial statements, we can check and supervise whether enterprises abide by national laws, regulations and systems, and whether there is tax evasion.
Baidu Encyclopedia-Financial Statements