FINANCIAL ACCOUNTING

&
REPORTING
(Fundamentals)

Mr. John Lee J. Mamaril, CFPP, MBA

Chapter 4: Types of Major Accounts (FAR
by: Millan)
 Chapter 3
FINANCIAL STATEMENTS ANALYSIS

Learning Objectives:
At the end of the discussion, the student will able to:

1. Discuss the Concept of FS ANALYSIS

2. Compute and Interpret the Horizontal and Trend Analysis
3. Compute and Interpret the Vertical or Common Size FS
 FS ANALYSIS

• Financial statement analysis is the process of

analyzing a company’s financial
statements for decision-making purposes.
External stakeholders use it to understand
the overall health of an organization and to
evaluate financial performance and business
value. Internal constituents use it as a
monitoring tool for managing the finances.
 FS ANALYSIS

• Financial accounting calls for all companies

to create a balance sheet, income
statement, changes in owners equity and
cash flow statement, which form the basis
for financial statement analysis.

• Horizontal, vertical, and ratio analysis are

three techniques that analysts use when
analyzing financial statements.
• END OF PRESENTATION