Financial Reporting and Auditing Agent with Net Knowledge (FRAANK) and eXtensible Business Reporting Language (XBRL)

2005 ◽  
Vol 19 (1) ◽  
pp. 19-41 ◽  
Author(s):  
Matthew Bovee ◽  
Alexander Kogan ◽  
Kay Nelson ◽  
Rajendra P. Srivastava ◽  
Miklos A. Vasarhelyi
Keyword(s):  
Financial Reporting ◽  
Financial Analysis ◽  
Balance Sheet ◽  
Cash Flows ◽  
Financial Information ◽  
The Internet ◽  
Practical Applications ◽  
Income Statement ◽  
Accounting Numbers ◽  
Statement Of Cash Flows

This paper describes the development and applications of FRAANK—Financial Reporting and Auditing Agent with Net Knowledge. The prototype of FRAANK presented here provides automated access to, and understanding and integration of, rapidly changing financial information available from various sources on the Internet. In particular, FRAANK implements intelligent parsing to extract accounting numbers from natural-text financial statements available from the SEC EDGAR repository. FRAANK develops an “understanding” of the accounting numbers by means of matching the line-item labels to synonyms of tags in an XBRL taxonomy. As a result, FRAANK converts the consolidated balance sheet, income statement, and statement of cash flows into XBRL-tagged format. Based on FRAANK, we propose an empirical approach toward the evaluation and improvement of XBRL taxonomies and for identifying and justifying needs for specialized taxonomies by assessing a taxonomy fit to the historical data, i.e., the quarterly and annual EDGAR filings. Using a test set of 10-K SEC filings, we evaluate FRAANK's performance by estimating its success rate in extracting and tagging the line items using the year 2000 C&I XBRL Taxonomy, Version 1. The evaluation results show that FRAANK is an advanced research prototype that can be useful in various practical applications. FRAANK also integrates the accounting numbers with other financial information publicly available on the Internet, such as timely stock quotes and analysts' forecasts of earnings, and calculates important financial ratios and other financial-analysis indicators.

Horse Vet, LLC: Transaction Analysis and Statement of Cash Flows Preparation (Option 1)

2017 ◽  
pp. 1-12
Author(s):  
Mark E. Haskins
Keyword(s):  
Financial Reporting ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Financial Statement ◽  
Balance Sheets ◽  
Income Statement ◽  
Transaction Analysis ◽  
Business Events ◽  
Statement Of Cash Flows

This case pertains to the foundational underpinnings of the accounting process and the statement of cash flows. In Part I, students are presented with 23 business events that they must evaluate for recording in the financial records. Part II requires students to prepare a 2012 statement of cash flows using the information presented in the company's 2011 and 2012 year-end balance sheets along with its 2012 income statement. In Part III, students must rely on a 2011 balance sheet and a 2011 statement of cash flows to work backward to derive the 2010 year-end balance sheet. There are two versions of this case: Option 1 and Option 2. The Option 2 case is a bit more challenging than the Option 1 case. Instructors should use Option 2 if they feel students are well grounded in their understanding of financial statement relationships and the customary financial reporting of a typical set of business events. Both cases reinforce students' learning related to the accounting process and the connectivity between the financial statements. Please note that only one version of the case should be used due to the existence of some overlap between the two.

Analyzing Two Investments—An Instructional Case to Introduce Basic Financial Accounting Concepts

2018 ◽  
Vol 33 (4) ◽  
pp. 47-56
Author(s):  
Wendy J. Bailey ◽  
Janet A. Samuels
Keyword(s):  
Financial Reporting ◽  
Business Students ◽  
Balance Sheet ◽  
Cash Flows ◽  
Legal Aspects ◽  
Financial Accounting ◽  
Net Income ◽  
Income Statement ◽  
Orientation Session ◽  
Statement Of Cash Flows

ABSTRACT This case introduces basic financial accounting concepts to graduate business students in an accounting orientation session (i.e., “boot camp”). Students assume they have invested in two cupcake businesses in Paris and they now want to determine which business performed best. Instructors can use this case, which provides students an opportunity to compare two businesses, to achieve several learning objectives including those related to accrual accounting (i.e., when to record transactions), the legal aspects of business (i.e., company structure, stock ownership, international accounting), and the use of estimates in financial reporting (i.e., depreciation, bad debts). This case also introduces students to the three basic financial statements (i.e., balance sheet, income statement, statement of cash flows), and the evaluation of financial results (i.e., net income versus cash flow, ratios). We have found that this simple, straightforward case helps students feel more confident when working with basic financial accounting concepts.

scholarly journals The rules for the Cash Flow Statement in the International Financial Reporting Standard

2013 ◽  
Vol 7 (1-2) ◽  
pp. 71-73
Author(s):  
Anikó Türkössy
Keyword(s):  
Cash Flow ◽  
Financial Reporting ◽  
Balance Sheet ◽  
Cash Flows ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Historical Changes ◽  
Income Statement ◽  
Cash Flow Statement ◽  
Statement Of Cash Flows

Cash flow statement may provide considerable information about what is really happening in a business beyond that contained in either the income statement or the balance sheet. Analyzing this statement should not present an intimidating task; instead it will quickly become obvious that the benefits of understanding the sources and uses of a company’s cash far outweigh the costs of undertaking some very straightforward analyses. The objective of IAS 7 is to require the presentation of information about the historical changes in cash and cash equivalents of an entity by means of a statement of cash flows, which classifies cash flows during the period according to operating, investing, and financing activities.

scholarly journals Methodology of cash flows analysis

2021 ◽  
Vol 16 (1) ◽  
pp. 27-47
Author(s):  
Miloš Pavlović ◽  
Čedomir Gligorić ◽  
Jana Cvijić-Rodić
Keyword(s):  
Decision Making ◽  
Balance Sheet ◽  
Accounting Information ◽  
Cash Flows ◽  
Financial Information ◽  
Income Statement ◽  
Report Analysis ◽  
The Subject ◽  
Accounting Period ◽  
Statement Of Cash Flows

Cash flows are one of the main indicators of liquidity and solvency of the company. In practice, the Statement of cash flows is very often done as "following document" to Balance sheet and Income statement. This is wrong. The statement of cash flows can give the information to its users about the ability of the company to make cash. The balance sheet and Income statement, due to their accrual basis, are not saying anything about the cash flows of the accounting period, and that is why the Statement of cash flows is very important. A good analysis of this statement can be the basis and support to the process of decision making both for internal and external users of financial information. In this paper we are presenting the methodology of the Statement of cash flows report analysis. The subject of this paper is the analysis of the Cash Flow Statement. The aim of this paper is to point out the importance of reporting on cash flows and its information capabilities to users of accounting information.

scholarly journals Análisis Contable y Financiero: Una Herramienta Clave Para La Eficiente Gestión Financiera Y Contable En La Empresa/Accounting and Financial Analysis: A Key Tool for Efficient Financial and Accounting Management in the Company

2020 ◽  
Author(s):  
B. Riera Riera ◽  
N. Alarcón Muñoz ◽  
N. Jiménez Zavala ◽  
J. Cevallos Vallejo
Keyword(s):  
Financial Analysis ◽  
Flow Analysis ◽  
Balance Sheet ◽  
Cash Flows ◽  
Share Price ◽  
Accounting Performance ◽  
Income Statement ◽  
Scope Of Application ◽  
Para Determinar ◽  
Statement Of Cash Flows

El análisis financiero y contable es fundamental para evaluar el rendimiento real económico, financiero y contable de una empresa, detectar dificultades y aplicar las medidas correctivas necesarias para resolverlos. La información contable que se refleja en los estados financieros como el balance general, cuenta de resultados, y el estado de flujos de efectivo en forma de datos resumidos. Sin embargo, para que los datos sean útiles para los usuarios de los estados financieros y contables, deben estar claramente analizados. Algunas de las maneras de analizar incluyen el uso de ratios, análisis de flujo de efectivo y análisis vertical y horizontal. De este contexto, en este estudio se evaluó la importancia del análisis financiero y contable como una herramienta clave para administrar la empresa eficientemente. El estudio fue analítico en el ámbito de aplicación con diseño documental basado en los fundamentos teóricos de diversos autores. Los resultados más relevantes del análisis indicaron que las empresas, privadas, instituciones públicas y de gobierno hacen hincapié en el uso de análisis de estados financieros como una herramienta para determinar la liquidez, solvencia, precio de las acciones, rentabilidad, crecimiento del negocio y pronósticos. The financial and accounting analysis is fundamental to evaluate the real economic, financial and accounting performance of a company, detect difficulties and apply the necessary corrective measures to solve them. The accounting information in the form of financial statements such as the balance sheet, income statement, and the statement of cash flows in the form of summary data. However, for the data to be useful for the users of the financial and accounting statements they must be analyzed. Some of the ways to analyze include the use of ratios, cash flow analysis and vertical and horizontal analysis. In this context, this study will evaluate the importance of financial and accounting analysis as a key tool to manage the company efficiently. The study will be analytical in the scope of application with documentary design based on the theoretical foundations of various authors. The most relevant results of the analysis indicate that companies, private, public and government institutions emphasize the use of financial statement analysis as a tool to determine liquidity, solvency, share price, profitability, business growth and forecasts. Palabras clave: contable, financiero, eficiencia, gestión, empresa. Keywords: accounting, financial, efficiency, management, company.

scholarly journals IPTEKS NILAI WAKTU UANG DAN IMPLIKASI PENCATATAN AKUNTANSI

2019 ◽  
Vol 3 (2) ◽  
Author(s):  
Novi Swandari Budiarso
Keyword(s):  
Interest Rate ◽  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Time Value Of Money ◽  
Time Value ◽  
Financial Position ◽  
Income Statement ◽  
Statement Of Cash Flows ◽  
Value Of Money

Most of general public and firms know about money and its value but do not have better understanding how the money creates its own value relates to interest rate. Another side, most of firms still not realize that the time value of money has an impact on accounting recording and its reporting in financial statements, such as statement of financial position (balance sheet), income statement, and statement of cash flows.

Dog Concierges, LLC: Transaction Analysis and Statement of Cash Flows Preparation

2017 ◽  
pp. 1-9
Author(s):  
Mark E. Haskins
Keyword(s):  
Balance Sheet ◽  
Financial Statements ◽  
Cash Flows ◽  
Balance Sheets ◽  
Income Statement ◽  
Transaction Analysis ◽  
Business Events ◽  
Statement Of Cash Flows

This case is appropriate in a MBA module for the accounting process and is also an excellent exam case. It provides a diagram of the three basic financial statements (balance sheet, income statement, and statement of cash flows) used to capture, codify, and communicate the effects of a series of typical business events. The case also gives students the opportunity to prepare a simple statement of cash flows using two sequential balance sheets and to work backward from a balance sheet and statement of cash flows to craft the beginning of the year's balance sheet.

Statement of Cash Flows and financial analysis: The case of a multinational company in Mexico

2019 ◽  
pp. 10-19
Author(s):  
María Trinidad Alvarez-Medina
Keyword(s):  
Financial Analysis ◽  
Financial Statements ◽  
Relevant Information ◽  
Cash Flows ◽  
Position Statement ◽  
Financial Information ◽  
Multinational Company ◽  
Economic Entity ◽  
Investment And Financing ◽  
Statement Of Cash Flows

The statement of cash flows, based on the financial information standard (NIF) B-2, issued by the Mexican Council of Financial Information Standards (CINIF, whose objective is to present to users, the generation and application of cash for activities of operation, investment and financing The analysis of cash flows, the application of methods and techniques of analysis to the basic financial statements as a whole, provide relevant information about operational and financial strengths and weaknesses of an economic entity. In the case presented by a Mexican multinational company, the financial statements as of December 31, 2018, 2017 and 2016 are analyzed, using vertical and horizontal techniques, determining the generation and use of cash flows, financial ratios, percentages and trends. the statement of cash flows in conjunction with the statement of financial position, statement of comprehensive income and the statement of variations in stockholders' equity, they provide relevant information about the financial situation of an economic entity; and thus identify the reasons that explain the aspects of liquidity, leverage, profitability, activity and coverage, having more elements of judgment that allow it to support decision making.

scholarly journals Comparison of Financial Reporting in the Visegrad Four Countries in a Global Environment

2021 ◽  
Vol 92 ◽  
pp. 02039
Author(s):  
Enikő Lőrinczová
Keyword(s):  
Czech Republic ◽  
Financial Reporting ◽  
Financial Analysis ◽  
Slovak Republic ◽  
Balance Sheet ◽  
Financial Statements ◽  
Financial Information ◽  
The Czech Republic ◽  
National Accounting ◽  
Eu Directive

Research background: The Visegrad Four (V4) countries are the Czech Republic, Slovakia, Hungary and Poland. As members of EU they had to incorporate into their national legal accounting framework the European Directives related to annual accounts, valid at the time, where various choices were possible to adopt. Some principles of the international financial reporting standards IFRS also affected the national accounting frameworks more or less, depending on the country. These various influences may affect the external user´s ability to read the published financial statements and compare them. Purpose of the article: The aim of this paper is to compare the relevant national legal framework of accounting in selected areas and the content of financial statements required in the V4 countries and to point out the influence of the chosen presentation of some financial information on selected indicators of financial analysis. Methods: Methods of description, analysis, comparison and synthesis are used to achieve the set aims of the paper. The financial analysis is demonstrated on an illustrative example of reported financial information which is based on the different national accounting legislation. Findings & Value added: The comparison showed some similarities and differences. The main differences amongst the V4 countries are related to the reporting of leased assets and the variation of own production and work-in-progress. Czech Republic does not report the leased assets in the balance sheet of the user of the asset but in the owner´s while the Slovak republic, Hungary and Poland report the asset in the user´s balance sheet which is in accordance with the international accounting standards IFRS (in case of Poland it depends on the lease contract). The Czech Republic reports the changes in own production and capitalization of own work as part of expenses which is in line with IFRS. The Slovak Republic, Hungary and Poland report these items as part of revenues which is in line with the EU Directive but in contrast with IFRS. Also, the Slovak republic and Poland have definitions of the elements of financial statements in their accounting legislation while the Czech Republic and Hungary do not have these definitions. These differences influence the results of ROA, ROE and cost efficiency when comparing the same situation in these countries as it is evidenced on the illustrative example in the paper.

scholarly journals Earnings Management in Light of the Shift to International Financial Reporting Standards (IFRS): An Exploratory Study on Saudi Corporations

2020 ◽  
pp. 1-19
Author(s):  
Dr. Fahad Sulaiman M Alnafea
Keyword(s):  
Earnings Management ◽  
Field Study ◽  
Financial Reporting ◽  
Exploratory Study ◽  
Balance Sheet ◽  
Cash Flows ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Income Statement

This study aims to study the Earnings management in light of the shift to International Financial Reporting Standards (IFRS) through a field study, which has occurred in Saudi joint-stock companies. Through research, I achieved several results, such as: That there is change expected to happen in Earnings management in light of the shift to International Financial Reporting Standards (IFRS) via: Manipulating both the expenditure and revenue in the income statement, The manipulation of the accounts of Balance Sheet Statement, The manipulation of cash flows statement, as well as through the manipulation of reports of the changes in equity statement. The accountants in Saudi Corporations are concerned to shift to IFRS, expecting that the Earnings management is going on; thus, the IFRS had implemented.

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