Articles Tagged ‘interpretation’
In the present circumstances being experienced by the country's economy is facing a full recovery, to thereby improving efficiency in social productivity should become the main way to ensure economic development. In this regard Carlos Lage in 1997 to introduce the Draft Resolution Economic the V Congress of the Communist Party of Cuba said: "The efficiency concept must change economic course of action, control and demand, where they manage to every worker. Socialism, as well as justice, efficiency and quality. What is not efficient is not socialist and what is not have quality should not be produced. " From the above one can infer the importance at the present time for the development of the country's economy that companies properly manage the material, financial and labor with a view to achieving economic efficiency, which is the fundamental basis of business improvement . For this reason, the necessary condition for the proper functioning of any system is the "Economic and Fin...
No matter how great the company or the activity that is engaged, or possesses such antiquity, is always subject to slip into a financial instability marked by the insolvency and liquidity, all product in many cases of bad financial policies, but most of the opportunities created by serious strategic mistakes or the accumulation of errors both in financial and productive, commercial and administrative. The current situation in the world, characterized by a very strong global competition, sharp and sudden economic and financial changes that generate large changes in the value of currencies and interest rates, important changes in the prices of raw materials, and continuous changes in tastes and preferences of consumers, resulting in firms having to do constant monitoring of your financial situation. Precisely the objective of our work is to analyze the financial situation of Company X in the first quarter of 2006 and 2007 based on the ratio pyramids and the analysis of working capita...
Obtained the information mentioned in the previous section, the analyst submitted to the Financial Statements has been provided to a number of modifications or adjustments necessary for analysis and interpretation. Some of these changes are general, so to speak, which are rules that apply to all financial statements, some of them are specific to one of them. General rules: Under that analysis is not intended to provide results of mathematical accuracy or approaches to the penny should be eliminated from the figures that show the financial statements cents or according to the magnitude of values working with hundreds and thousands of pesos. It is understood that selecting the base, we apply this to all the values found at Balance, following the rule that if the figure is more than five to rise to the next higher unit and if it is less than the immediate. If five numbers match, it usually takes the measure of leaving them as is, in order to affect them either more or less, depending...
The main source of information or material to the financial and economic analysis, what are the financial statements are the result of a complex interplay of theory and accounting practice, with several social-economic influences, political and legal. In its etymology the word state is derived from Latin "status" that indicates "situation in which there is a particular person or thing and each of the successive modes of being of a person or thing subject to changes affecting their status ". As regards the term finance comes from the Latin "finis," meaning "the term or performance of an obligation to give money." According to Name "Basic Financial Statements of Accounting, are reports that are used primarily to raise awareness of the situation or a company's financial position at a particular time of his life, as well as the result of his business during an accounting period given” Before directing attention to the techniques of analysis to be addressed in the next chapter, ana...
The analysis and interpretation of financial statements is useful in achieving several objectives: 1) The evaluation of past performance 2) The assessment of current status 3) The prediction of future potential 4) Take the right decisions to maximize profits and resources Being basically historical in nature, the financial statements are more convenient for the first two purposes. However, most readers of the financial statements are interested in the future, ie by the Company's ability to grow and prosper and the availability of the company to adapt to varying conditions. Properly used, the analysis of financial statements can provide a basis for projecting future and clues about how the company will respond to these future situations. From an internal perspective of the company, analysis of financial statements provides many advantages to the administration: 1) In planning the short and long term, when choosing between alternatives, objectives, policies, procedures and prog...