June 20, 2013
A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements, accompanied by a management discussion and analysis:
For large corporations, these statements may be complex and may include an extensive set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.
If you’ve done financial modeling, you’ll know that there is a big difference in creating hypothetical models and creating the models of actual companies. When you start creating the models for an actual company and start entering the actual numbers in your model, hundreds of things can go wrong!
Financial Statements (Income statement and Balance sheets)are the key starting points in building financial models for any company. In this post, we guide you (Not once but thrice!) to understand creating these statements from scratch.
You can download this 15 page e-book that gives you a step by step process to create templates for the financial statements. We have taken LinkedIn as a case study and will help you learn the creation of the models. We start form the very basic â€“ extracting data, to creating the template, cleaning the data and finally creating the statements. And you would learn this step by step!
Just because we are Awesome!
EduPristine is a premier training provider for financial modeling, valuation, investment banking and Risk management courses. If you want to have an in-depth Financial Modeling Expertise, consider joining our Financial Modeling Course.
If you are in US or Middle East, we are also running our classroom programs. If you want to know more, write to us on email@example.com
Also read our blog on Cash Flow Templates