Financial Management by Svetlana Saksonova Pdf
Download Financial Management by Svetlana Saksonova Pdf book free online – from Financial Management by Svetlana Saksonova Pdf book; The objective of this note is to provides entrepreneurs with the knowledge in the area of financial management, in order to enable them to successfully make financial decisions and successfully plan financial and business operations. This course note assumes little prior applied knowledge in the area of financial and operation analysis.
In preparing the financial statements it is generally assumed that an enterprise is a going concern and will continuously remain in operational existence for the foreseeable future. Thus it is assumed that the enterprise does neither have the intention nor is required to go into liquidation or to make drastic cutbacks to the scale of its operations. If such an intention arises or if the enterprise is required to do so, it is possible that the financial statements will have to be prepared in accordance with another assumption (closure, for example), and in this case this assumption applied is to be noted.
While preparing the financial statements the management of the enterprise must assess the ability of the enterprise to continue its operations. The financial report is prepared on the assumption that the enterprise will continue its operations unless the management intends to close its activities or if other circumstances exist that require closure of the enterprise. If the management is notified of a substantial uncertainty due to events or circumstances causing serious doubts concerning the ability of the enterprise to continue its operations, this fact should be disclosed in a note by stating the principles used in preparation of the financial statements and the reason justifying the going concern assumption. If the going concern concept is not used as the basis for preparation of thefinancial report, then this fact should be disclosed in a note by stating the principles used in the preparation of the financial statements and the reason for the going concern concept being unjustified.
By assessing whether the going concern concept is justified executives of an enterprise should evaluate all the information at their disposal regarding the plans and prospects of the enterprise for the foreseeable future or a period of at least 12 months from the date of the balance sheet. If operations of an enterprise have been profitable up to that date and if there are financial resources available, the going concern concept should be applied without performing an in-depth analysis. Otherwise the executive team of the enterprise must analyse the factors affecting its current and estimated profitability,
debt repayment schedules and possible sources of re-financing.