Financial
Statements
Mohamed Samir Rashed CMA , IFRS
APRIL2023 Mohamed Samir
O NTENT
T HE C
Introduction
What are Financial Statements?
The Income Statement
The Balance Sheet
The Cash Flow Statement
Analyzing Financial Statements
Introduction
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
Introduction
Financial statements are
essential documents that
businesses use to track their
financial performance.
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
They provide valuable
insights into a company's
financial health, helping
stakeholders make
informed decisions
about investments, loans,
and more.
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
What are
Financial
Statements?
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
What are Financial Statements?
The 3 main types of
financial statements are
1-the income statement
2-balance sheet
3-cash flow statement.
More Details about them
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
The Income
Statement
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
The Income Statement
The income statement
shows a
company's revenue,
expenses,
and net income over a
specific period, usually a
quarter or a year.
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
The Income Statement Components
1. Revenue
2. Cost of goods sold (COGS)
3. Gross profit
4. Operating expenses
5. Operating income
6. Other income and expenses
7. Net income before taxes
8. Income taxes
9. Net income
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
The Balance
Sheet
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
The balance sheet provides
a snapshot
of a company's financial
position at a specific point
in time.
It shows the company's
assets, liabilities, and equity
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
Balance Sheet Components
1. Assets
2. Current assets
3. Non-current assets
4. Liabilities
5. Current liabilities
6. Non-current liabilities
7. Equity
8. Contributed capital
9. Retained earnings
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
The Cash
Flow
Statement
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
The cash flow statement
shows the inflows
and outflows
of cash and cash
equivalents over a specific
period
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
Cash flow Components
1. Cash flows from operating
activities
2. Cash flows from investing
activities
3. Cash flows from financing
activities
4. Net increase/decrease in
cash and cash equivalents
5. Beginning cash balance
6. Ending cash balance
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
40
30
20
10
0
Item 1 Item 2 Item 3 Item 4 Item 5
Analyzing
Financial
Statements
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
Once you understand the
components of the financial
statements, the next step is
to analyze them.
6 Steps to analyze financial
statements
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
1. Review the income
statement
2. Examine the balance sheet
3. Evaluate the cash flow
statement
4. Compare financial
statements over time
5. Compare financial
statements to industry peers
6. Look for red flags
Mohamed Samir Rashed CMA , IFRS
Mohamed Samir
BY / MOHAMED SAMIR
