Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting

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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

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CA Vikram S. Mathur (GFSU - Lecture series)

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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.

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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

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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

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Principle

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(Domestic and International)

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Indian Accounting Standards (ICAI)

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Accounting)

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Accounting)

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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.

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Financial Statements and Reports

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Financial Statement Analysis

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Financial Ratio Analysis

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of an Entity (specially a company)

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Analysis

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Financial and Total

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Cost Volume Profit Analysis

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Budgeting: Some basic concepts

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Taxation, Basic concepts

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in Financial Management

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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

Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting

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Transcript of Unit 1 2 financial statements cash-flow_and_taxation-gfsu-mba-forensic_accounting