Financial Statement Review contains the same items as in the financial statement. It publishes the rectified report. The review contains all the aspects of the financial statements including the income statement, balance sheet, statement of cash flow and the statement of stockholder’s equity.
The review ideally must contain information covering all the major financial topics of a company. There are a number of things that require a lot of analysis. The company’s assets and liabilities need to be understood properly in order to assess a company’s financial position.
There are a lot factors that determine the income of a company. Those factors make it difficult for the accountants to understand the income of the company. Money and income are two different entities when it comes to calculating the income of the company. The equation of the net income is absolutely important to understand. According to the equation the net income of the company is equal to the subtraction between the net liabilities and the net assets. The review sheet contains all the information on the various aspects of the financial report. It gives a detailed description of the assets and liabilities of a company.
It talks about sales, cost, gross profit, operating expenses, EBIT, interest expense, income tax expense, net income, current assets, cash, marketable securities, accounts, inventory, prepaid expenses, investments, intangible assets, different kinds of liabilities, interest payable, income tax payable, bonds, treasury stock and retained stock.
The review also provides certain suggestions on how the report could be accurate. At the end of the review sheet the suggestions are incorporated.
Last Updated on : 26th June 2013