unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting
TRANSCRIPT
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Lecture Series Unit No. 1:Topic: (2) Financial Statements,
Cash Flow and Taxation(Course: Forensic Accounting & Homeland Security,
GFSU)
CA Vikram Shankar MathurBA (Eco) Hons, FCA, DISA (ICAI), FAFP (ICAI)
Contact No: +91-9998090111 or +91-8460890111.
Email: [email protected] or [email protected]
Website: http://vsmathur.co.in and http://ahmedabadfca.com
FB Profile(s): http://fb.me/vsmathurco or http://fb.me/vsm.ahmfca
FB Page: http://fb.me/fcavsmathur.faculty
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Quick Recap of the last lecture• Financial Manager must be familiar with the familiar with the following aspects of the business
environment: forms of business organization, financial system, regulatory environment and tax system.• The important forms of business organization are: sole proprietorship, partnership, private limited
company and public limited company and limited liability partnership / company. From the viewpoint of value maximization, the public limited company is most appropriate.
• Principal components of the financial system are: financial assets, financial intermediaries, financial markets and financial yields and interest rates.
• E&S Risk = Environmental and Social Risk (for Financial Institutions).• Fairly elaborate regulatory framework for industrial sector in India. Major elements are (i) Industrial
Policy Resolution (ii) Industries (Development Regulation) Act, (iii) Companies Act, (iv) Limited Liability Partnership/Company Act (v) Capital Issues (Control) Act, (vi) MRTP Act and (vii) FERA / FEMA.
• The procedure for computing the tax burden of a business entity is rather involved. It calls for taking into account a variety of reliefs and incentives available under the Income-Tax Act.
• The Income-Tax Act provides several incentives for individual assessees to save and invest in certain ways.
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Financial Statements, Cash Flow
and Taxation• Generally Accepted Accounting Principles, Going Concern Concept /
Principle and Accounting Standards• Accounting Cycle, Statements of Financial Information and
Understanding Corporate Financial Statement and Reports• Financial Statement Analysis, Financial Ratio Analysis and Assessing the
Financial Health of an Entity (specially a company)• Cash Flow, Fund Flow and Analysis, Leveraging: Operating, Financial and
Total, Cost Volume Profit Analysis and Budgeting: Some basic concepts• Taxation – Entity and Corporate Taxation, Basic concepts and the
Relevance of Taxation Planning in Financial Management
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Generally Accepted Accounting
Principles (GAAP)
• Money Measurement Concept• Separate Entity Concept• Duality Concept• Going Concern Concept• Cost Concept• Accounting Period Concept
• Conservative Principle Concept• Realization Concept• Accrual Concept• Matching Concept• Consistency Concept• Materiality Concept
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Going Concern Concept /
Principle
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Accounting Standards
(Domestic and International)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Indian Accounting Standards (ICAI)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Accounting Cycle (General
Accounting)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Accounting Cycle (Business
Accounting)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Statements of Financial
Information
Extracted from: http://www.learn-accounting.com/business_accounting/L1_1_financial_statements.php
Key points:- the balance sheet is used to assess the firm’s financial position at a point in time- the cash flow statement and the income statement are used to assess performance over the period- the cash flow statement explains the change cash from the beginning of year versus end of year- the income statement shows the performance over the year- the statement of retained earnings shows how beginning of year retained earnings increases with net income and decreases with dividends, resulting in end of year retained earnings.
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Understanding Corporate
Financial Statements and Reports
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Financial Statement Analysis
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Financial Ratio Analysis
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Assessing the Financial Health
of an Entity (specially a company)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Cash Flow, Fund Flow and
Analysis
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Leveraging: Operating,
Financial and Total
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Cost Volume Profit Analysis
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Budgeting: Some basic concepts
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Taxation – Entity and Corporate
Taxation, Basic concepts
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity Relevance of Taxation Planning
in Financial Management
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
CA Vikram S. Mathur (GFSU - Lecture series)
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Fina
ncia
l Man
agem
ent
& H
omel
and
Secu
rity
Thank you for your patience!!
CA Vikram Shankar Mathur+91-9998090111 / +91-8460890111
(Available on WhatsApp on both numbers, anytime)[email protected] [email protected] Page: http://fb.me/fcavsmathur.faculty
Website: http://fcavsmathurfaculty.wordpress.com