Loading display settings…
Original, source-based guides to financial statements for investors.
20 articles · Original research guides with primary sources and worked examples
Learn to connect the three financial statements through net income, cash, and working capital. Credit sales and capital expenditure examples explain why profit differs from cash flow.
Read article →Understand the reporting scope of consolidated and separate financial statements, intragroup eliminations, and dividend income. Assess group performance and the parent's finances separately.
Read article →Follow revenue, cost of sales, SG&A, finance income and costs, and income tax through the income statement. Use amounts and margins to understand why net income can fall despite revenue growth.
Read article →Read a balance sheet through the relationship between assets, liabilities, and equity. Examples show whether asset growth comes from borrowing, new share issues, or accumulated profits.
Read article →Interpret the three cash flow categories by where money comes from and how it is used. Distinguish negative investing cash flow from cash increases funded by borrowing.
Read article →Understand how industry and revenue recognition policies affect revenue presentation. Separate transaction value, cash receipts, and revenue, and examine how gross versus net reporting affects growth.
Read article →Learn how to calculate gross margin and distinguish price, cost, and product mix effects. A worked example shows how sales mix changes overall margins even when individual product margins stay the same.
Read article →Break down finance income and costs, other gains and losses, and income tax between operating profit and net income. See why improving operations can produce a different outcome for shareholders.
Read article →Understand why consolidated net income is allocated between owners of the parent and non-controlling interests. Connect subsidiary ownership to the parent's share of profit and the earnings used for EPS.
Read article →Understand weighted-average shares in basic EPS and potential ordinary share adjustments in diluted EPS. A convertible bond example shows why both the numerator and denominator can change.
Read article →Understand current and non-current assets through their use and timing of conversion to cash. Distinguish a high current ratio from cash availability when inventory and receivables dominate assets.
Read article →Liabilities include trade payables, contract liabilities, and provisions as well as borrowings. Compare different interest burdens and settlement methods behind the same total liabilities.
Read article →Learn why share capital is only one part of total equity, alongside share premium, retained earnings, and treasury shares. Examples distinguish new share issues from transfers within equity.
Read article →Retained earnings are not a separate cash account. Learn how profits can remain invested in equipment or receivables and which statements help assess dividend and investment capacity.
Read article →Understand how other comprehensive income connects net income and equity. Distinguish foreign operation translation and retirement benefit remeasurements while avoiding double-counting.
Read article →Use major changes in the primary statements to find relevant accounting policies and detailed notes. Borrowing and receivable examples show how to select disclosures and frame useful questions.
Read article →Learn to check subsidiary additions, disposals, and control assessments in annual reports. An acquisition example separates growth from newly consolidated revenue from growth in the existing business.
Read article →Check accounting periods and comparative reporting dates before calculating growth. Learn how fiscal year changes, seasonality, and restated comparatives can distort comparisons.
Read article →Subtract cumulative half-year and nine-month figures to calculate individual quarters. Learn why margins and EPS cannot simply be subtracted, and understand the limits of annualization.
Read article →Align currencies, monetary units, and share counts across statements and notes. Korean won unit conversions and an EPS example illustrate scaling errors and rounding differences.
Read article →