REQUIREMENTS
One of the main objectives of the adoption of the International Financial Reporting Standards (IFRSs) is to assist users to make a comparison about the financial performance of companies from different countries. Choose two companies from two different countries which adopted IFRSs and access their latest annual reports. Based on the information in annual reports:
Many small and mid-sized companies are run by entrepreneurs who are highly skilled in some key aspect of theirbusiness—perhaps technology, marketing or sales—but are less savvy in financial matters. The goal of this document is to help you become familiar with some of the most powerful and widely-used tools for analyzing the financialhealth of your company.
Some of the names—”common size ratios” and “liquidity ratios,” for example—may be unfamiliar. But nothing in the following pages is actually very difficult to calculate or very complicated to use. And the payoff to you can be enormous. The goal of this document is to provide you with some handy ways to look at how your company is doing compared to earlier periods of time, and how its performance compares to other companies in your industry. Once you get comfortable with these tools you will be able to turn the raw numbers in your company’s financial statements into information that will help you to better manage your business.