Common Size Financial Statements and Analysis
Hi Shumi, I have down loaded the Financial reports for 2006,2007,2008 from the website. I would like to know from you if the BS & IS for the 3 periods, needs to be detailed to what level? all accounts to be shown or some main accounts what is your input on this?--Luisaserra 18:24, 12 April 2009 (UTC)
Good to hear you've downloaded. I've got them as well and I think the detail there is fair enough. On the 2006 I/S there are about 14 classifications which isn't bad. If you don't agree perhaps you can idnetify the accounts you want to leave out and then we discuss the materiality together. Otherwise my opinion is to include all.
ok, I will do that. the first task is really to copy and paste from the annual financial reports and put the 3 periods in a format that can be compared, then analyse the trends, isn't it?--Luisaserra 18:34, 12 April 2009 (UTC)
yeah, but the format is called a Common Size Analysis ie you put everything as a percentage of sales so you'll have 3 years of percentages of sales. I'll forwad you a doc from the lecturer that will help jus incase you didn't see it on EDS. In addition you're working with an expert called Jeremiah so you'll be fine!! --Shumimlingo 18:37, 12 April 2009 (UTC)
Thanks, do send the document from the lecturer and we will see how we progress.clear from my side--Luisaserra 18:39, 12 April 2009 (UTC)