Research On Analysis Of Financial Statements

By employing normative & empirical research, the paper tentatively studies the theories and methods of financial statements analysis in several aspects. Starting from a series of concepts analysis, the research includes 6 aspects, namely the basic theory of financial statements, the defects of analysis the financial statements and the preparations before analysis, quality analysis of earnings, analysis of working capital, analysis the cash flow statement and other analysis of financial statements. The whole article consists of six chapters:Chapter one differentiates the concepts of financial statement, accounting report, and accounting statement. Furthermore, this part put forward to the framework of financial statement, introducing the principal and content of analysis of financial statements.Chapter two discusses the defects of analysis of financial statements, and gives suggestions before we study the financial condition through financial statements.Chapter three brings forward the importance of quality analysis of earnings. First, discuss the definition of quality of earnings. Secondly, study the characters of quality of earnings. Thirdly, study intensively the methods of quality analysis of earnings through nine aspects.Chapter four is the analysis of working capital. This chapter includes three segments: the analysis of full assets, of fixed assets, and of intangible assets. At the end of the chapter, giving the index of analyzing working capital.Chapter five focus on the analysis of cash flow. First of all, introduces the meaning of analysis of cash flows, discusses the factors that can influence the operating cash flows from manipulating the relevant items, giving corresponding adjust methods. Finally, apply the cash flows analysis to structure, trend, and the ability of repaying debt, the quality of earnings.Chapter six consists of four portions. Part one discuses the analysis of foot notes to financial statements. Part two studies the audit report. Part three focuses on the utility of segment report. Part four analyses the rational ratio of capital by employing empirical research...