Posts Tagged ‘financial statements’

Essilor: Interim 2011 Results | Business Wire

CHARENTON-LE-PONT, France–(BUSINESS WIRE)–Regulatory News:

The Board of Directors of Essilor International (Paris:EI) met yesterday

to approve the Company’s financial statements for the six months ended

June 30, 2011. The financial statements have been the object of a

limited review, and the auditors have issued an unqualified opinion.

€ millions

 

First-half 2011

 

First-half 2010

 

% Change

Revenue

 

2,060.1

 

1,926.8

 

+ 6.9%

Contribution from operations 1

(% of revenue)

 

371.6

18.0%

 

347.5

18.0%

 

+ 6.9%

Profit attributable to equity holders of Essilor International

 

258.2

 

197.5

 

+ 30.7%

Adjusted attributable profit2

 

258.2

 

238.8

 

+ 8.1%

Earnings per share (in €)

 

1.25

 

0.94

 

+ 32.1%

Adjusted earnings per share (in €)2

 

1.25

 

1.14

 

+ 9.3%

Cash flow 3

 

357

 

329

 

+ 8.5%

Be the first to comment - What do you think?  Posted by admin - October 2, 2017 at 8:04 pm

Categories: Uncategorized   Tags: , , , , , , , ,

Simple Examples That Make Understanding a Financial Statement Easy

Financial statements are used for recording the business activities and transactions of business entities. These statements are known as accounts, however, accountants prefer using the term ‘financial statement’. One gets an idea of the assets and liabilities of a company through financial statements. The information about transactions and turnover of a company obtained through this statement gives an idea of its financial condition.

What are Financial Statements?

These are records/statements used for maintaining the data of business/financial activities of an organization or individual. The definition of financial statement can be simply stated as, a document which provides an overview of the financial condition of a business entity. Financial statements are presented in a proper, structured format and the information given through them is easy to comprehend.

The 4 basic types of financial statements are income statement, balance sheet, cash flow statement, and the statement of retained earnings. The analysis of these statements helps in understanding the current financial condition of an organization. Statements prepared for dummies are simple in their format. Income statement for dummies include elements like sales, net revenue, gross income, net income, gross profit, net profit, etc.

Financial Statements Examples

The examples mentioned below are the 4 basic statements which provide information about transactions taking place in an organization. The templates presented below make use of the format specified by Generally Accepted Accounting Principles (GAAP) of the United States of America.

Balance Sheet: This document presents a summary of an organization’s balances. Liabilities, assets, and ownership equity of a company are listed in the balance sheet. The balance sheet is one of the important financial statements of business entities. Information presented in the balance sheet shows data particular to the point of time when it is generated. Format of the balance sheet of a small organization is presented below.

Assets Amount
Current Assets
Fixed Tangible Assets
Other Assets
Total

Owner’s Equity Amount
Owner’s Equity Before Deduction
Treasury Stock
Long Term Liabilities
Total

Liabilities Amount
Current Liabilities
Deferred Taxes
Long term Liabilities
Total

Income Statement: It is known as the ‘Profit and Loss Statement’. The income statement presents data regarding the transformation of revenue to net income. The expenses and costs incurred against revenue are displayed along with the taxes and write-offs. The write-offs include information about amortization and depreciation of assets. The objective or purpose of preparing an income statement is to understand whether a company has recorded profit or loss during a given period of time. The income statement includes information about net income earned and is calculated by subtracting expenses from revenue. The following equation and template gives us an idea about how income statements are generated.

Net Income = Revenue – Expenses

Revenues Amount
Net Sales
Rental Revenue
Total

Expenses Incurred Amount
Cost of Goods
Wages
Utilities
Supplies
Total

Net Income Amount
Revenues – Expenses
Total

Cash Flow Statement: In order to determine the cash flow in an organization, one has to consider factors like financing, investment, and core operations. The current operations taking place in an organization and the changes in the balance sheet which occur due to these operations recorded in the cash flow statements.

Cash Flow Amount
Cash Flow from Investing
Operations Cash Flow
Cash Flow from Financing
Total

Statement of Retained Earnings: The statement of retained earnings provides us with information about changes that take place in the retained earnings of an organization over a period of time. The term ‘retained earnings’ refers to part of net income that is not distributed in the form of dividends but retained by the company. The retained earnings statements can be presented along income statements in combination with balance sheets or separately. The statement is needed whenever a comparative study of income statements and balance sheets is required to be done. The following equation explains the concept of retained earnings in a better manner.

Ending Retained Earnings = Beginning Retained Earnings – Dividends Paid + Net Income

The financial statements for non-profit organizations should include details about activities, the financial position, and cash flow information. The financial statement samples given above thus explain how records of financial transactions are maintained.

Be the first to comment - What do you think?  Posted by admin - June 12, 2017 at 1:17 pm

Categories: Uncategorized   Tags: , , , , , , , , , , ,

The Purpose Of Audits

If a business breaks the rules of accounting and ethics, it can be liable for legal sanctions against it. It can deliberately deceive its investors and lenders with false or misleading numbers in its financial report. That’s where audits come in. Audits are one means of keeping misleading financial reporting to a minimum. CPA auditors are like highway patrol officers who enforce traffic laws and issue tickets to keep speeding to a minimum. An audit exam can uncover problems that the business was not aware of.

After completing an audit examination, the CPA prepares a short report stating that the business has prepared its financial statements, according to generally accepted accounting principles (GAAP), or where it has not. All businesses that are publicly traded are required to have annual audits by independent CPAs. Those companies whose stocks are listed on the New York Stock Exchange or Nasdaq must be audited by outside CPA firms. For a publicly traded company, the expense of conducting an annual audit is the cost of doing business; it’s the price a company pays for going into public markets for its capital and for having its shares traded in the public venue.

Although federal law doesn’t require audits for private businesses, banks and other lenders to private businesses may insist on audited financial statements. If the lenders don’t require audited statements, a business’s owners have to decide whether an audit is a good investment. Instead of an audit, which they can’t really afford, many smaller businesses have an outside CPA come in on a regular basis to look over their accounting methods and give advice on their financial reporting. But unless a CPA has done an audit, he or she has to be very careful not to express an opinion of the external financial statements. Without a careful examination of the evidence supporting the amounts reported in the financial statements, the CPA is in no position to give an opinion on the financial statements prepared from the accounts of the business.

Be the first to comment - What do you think?  Posted by admin - April 9, 2017 at 9:39 am

Categories: Uncategorized   Tags: , , , , ,

Sun Mergers & Acquisitions, an M&A Advisory Company with a Difference

Selling a business is, for most, a once in a lifetime occurrence, and one in which a business owner cannot afford to experience an expensive learning curve. Business owners tend to be experts in their respective industries, but normally have limited or no experience with the complex business sale process. M&A advisory companies play a crucial role in helping business owners sell or merge their businesses with other companies. As specialists in this field, they have sufficient expertise to help their clients overcome many of the difficulties associated with mergers or acquisitions, and most importantly, realizing superior value in the sale of their company.

Sun Mergers & Acquisitions is a New Jersey based M&A firm, specializing in the private sale of small and mid market companies. With over 20 years of experience, Sun brings a level of expertise that has previously only been available to larger firms. Sun M&A's involvement in hundreds of successful transactions enables it to work together with its clients in a team effort to ensure that a client's transaction is maximized. Many acquirers have been involved in multiple acquisitions and have significant experience in this process. An engagement with Sun M&A will level the playing field when negotiating with these experienced parties.

When acquirers evaluate a business opportunity, they expect the records and facts to be properly organized and documented. A professionally packaged and presented business increases a buyer's confidence and comfort level, thereby increasing the likelihood of a successful sale. A business owner spends years establishing name recognition, market niche, vendor relationships, operation & production systems, management, personnel, distribution channels, customer loyalty, and numerous other intangibles. This is a story that needs to be properly told to educate potential buyers. Sun M&A takes pride in its ability to present an in-depth review of a company's strengths, weaknesses, and opportunities to validate and defend the future earnings potential of the business, thus maximizing its attractiveness and perceived value and enhancing the likelihood of a successful sale. This client approved report does not disclose the company identity, thereby maintaining confidentiality.

Likewise, financial statements of privately held companies typically are prepared with a view towards minimizing a tax burden. This purpose tends to be at odds with what a business owner wants to show to a potential buyer in the context of a business sale. To enable a potential buyer to “read between the lines,” professionals at Sun “recast” or “adjust” expenses on financial statements to reflect the true profitability and discretionary cash flow that would be available to a new owner. This recasting involves identifying the owner and/or family member salaries, any perquisites or fringe benefits, one-time or extraordinary expenses, current expenses for future expansion that have not impacted historical sales, non-cash expenses, and other expense items not likely to recur or be applicable to future ownership. The intermediaries at Sun thoroughly analyze all financials to identify these expense items that can be restated or adjusted, and thereby maximize the price a seller will receive for their company.

Be the first to comment - What do you think?  Posted by admin - January 15, 2017 at 6:32 pm

Categories: Uncategorized   Tags: , , , , , ,