analysis articles in the balance sheet is carried out to characterize the company's ownership structure and the sources of its financing.Methods of assessing the accounting document can be selected are different.
example, vertical analysis reflects the structure of the company's funds, their sources.Vertical analysis enables the estimation of the relative.These estimates, in turn, make it possible to compare the economic performance of companies, which differ in terms of resources used, smooth out the effects of inflation, which distort the absolute values in the financial statements.
Conduct vertical analysis carried out in accordance with the scheme.First determine the share of current and fixed assets as a result of reporting, after considering their structure and identify the proportion of invested assets and current liabilities, and their structure.After determining the causes of changes in reporting.
Horizontal analysis - a method of evaluation reports, which involves the construction of a few (or one) of analytical tables.In these constructions, the absolute values are complemented by the relative rates of decline (of growth).
horizontal analysis is more conveniently carried out using an analytical table that contains such a value as an indicator of liabilities (assets) at the end and beginning of the year in cash and a percentage of the total, resizing liabilities (assets) in money, percentages and densities.When the speaker presented the documents covering the time period of more than a year, the calculation is carried out for the basic rate of several adjacent periods (years).Thus, the horizontal analysis allows us to estimate not only the changes in individual performance, but also to predict their meaning.
Vertical assessment draws attention to the elements, which have the highest weight.Horizontal analysis allows focus on those components which share changes abruptly.And those other components are to some extent the indicators of problem areas of the enterprise.Use only one horizontal analysis is often impractical.To reflect the full picture of both methods are often used in combination.
Thus, horizontal and vertical analysis of the balance sheet are closely interrelated.
should be noted that both approaches are particularly valuable during the inter-farm comparisons, comparing statements of different enterprises on production volumes and activities.
There is also a coefficient method of economic evaluation.It is a set of relative values, which are determined according to the accounting report, mainly from data on losses and gains.The coefficients used in accordance with the theory, which provides a definite correlation between specific items in the report.Preferred values will depend on the manufacturing industry characteristics, their size, which is usually estimated sales volume for the year, or an average price of assets.On these indicators can affect the economy in general and the phase of the economic cycle.The coefficients is performed on reports, which are translated into an analytical form.
As a complement to these approaches is used factorial method.This method allows you to set the changes in the resulting symptoms that occurred under the influence of certain factors that have supposedly quantitative effect.Using deterministic models is carried out a study of functional connection between the arguments (factors) and function (output indicators).
