Financial Decisions in International Companies

1.

Financial Decisions in
International Companies
ANASTASIA PODRUGINA
SENIOR LECTURER, SCHOOL OF WORLD ECONOMY

2.

Financial Statement
PART 1. BALANCE SHEET AND INCOME STATEMENT

3.

Why do we need financial statement?
Financial statements are accounting reports with past performance information that a firm
issues periodically.
Financial statements are standardized:
GAAP (Generally Accepted Accounting Principles) - US
IFRS (International Financial Reporting Standards) – Europe, other countries
Public companies are required to provide…
Balance Sheet
Income Statement
Cash Flow Statement
… (e.g. 10-K in US)

4.

Why do we need financial statement?
Financial statements can be useful to…
investors
other interested outside parties (creditors, suppliers, customers)
financial analysts
government and society
managers
Principal-agent problem - a conflict in priorities between a person or group and the
representative authorized to act on their behalf.
Audit
Big Four: PricewaterhouseCoopers, Ernst &
Young, Deloitte Touche, KPMG

5.

Balance sheet
Баланс
31.12.2020 31.12.2019
Assets
Активы
Total non-current assets
Итого внеоборотные активы
x
x
Total current assets
Итого оборотные активы
x
x
Total assets
Итого активы
x
x
Equity and Liabilities
Собственный капитал и
обязательства
Equity
Собственный капитал
x
x
Long-term liabilities
Долгосрочные обязательства
x
x
Short-term liabilities
Краткосрочные обязательства
x
x
Total liabilities
Итого обязательства
x
x
Total equity and liabilities
Итого собственный капитал и
обязательства
x
x
Balance Sheet
The balance sheet has information about what
shareholders collectively own and what they
owe at the date of the statement.