Financial Management

A comparison of U.S. GAAP with international standards like IFRS, focusing on differences in rules, valuation, and reporting.

The accounting flexibility is the permitted choice of methods in financial reporting under accounting standards.

The statement of stockholder’s equity outlines changes in equity, such as stock options, share buybacks, and treasury shares.

The statement of cash flows summarizes a company’s cash movements through operating, investing, and financing activities.

The income statement is a summary of operating performance over a period of time (e.g. a fiscal quarter or a fiscal year).

Equity refers to the ownership interest in a company. It represents the residual value of assets after deducting liabilities.

Liabilities are obligations of the business enterprise that must be repaid at a future point in time and liabilities also known as debt.

Assets are anything that the company owns that has a value. These assets may have a physical in existence or not.

The balance sheet outlines the company’s assets, liabilities, and equity, showing how resources are financed.

The basic financial statements are the balance sheet, income statement, statement of cash flows, and the statement of shareholders’ equity.