The Influence Of Accounting Methods And Analysis Methods On The Comparability Of Statements

< p > the data produced by different methods of accounting will be different.

For example, the straight line depreciation method or accelerated depreciation method are adopted for fixed assets, and depreciation fees are also different.

Long term investment in enterprises is not the same as the investment income recognized by the equity method.

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< p > therefore, if the former a href= "http:// www.91se91.com/news/index_c.asp" > accounting treatment < /a > method changes, it will have an impact on the comparative analysis of the former and later financial statements.

Similarly, if an enterprise compares with another enterprise, if two enterprises adopt different accounting methods for the same matter, the comparability of data will also be reduced.

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< p >, therefore, when we analyze < a href= "http:// www.91se91.com/news/index_c.asp" > < /a >, we must pay attention to the annotations and see what methods and methods are used by enterprises.

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< p > from the perspective of financial statement analysis method, the different calculation methods of certain indicators will also bring different effects to the comparison among different enterprises.

For example, accounts receivable turnover, inventory turnover and so on, the calculation of the average balance, because the users of the report often limit the number of accounts at the beginning and the end of the year because of data limitations, so that the accounts receivable balance and inventory balance should be calculated on average.

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< p > but in the seasonal operation of enterprises or monthly changes in the larger situation, the beginning and the end of the season coincided with the peak season, the average balance will be too large, if it is off-season, it will be too small, thereby affecting the index < a href= "http://? www.91se91.com/news/ index_c.asp" > accuracy < /a >.

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< p > in addition, financial statements analysis and indicator evaluation should be compared with other enterprises and industry average indicators.

However, different situations of enterprises, such as environmental impact, enterprise size and accounting method, will have an impact on comparability.

The average index of industry is often the synthesis or compromise of various situations.

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< p > if the industry average index is obtained by sampling survey, when the extreme sample is drawn, it will distort the whole industry situation.

Therefore, in the comparative analysis, we should carefully use the industry average index. We should pay attention to the adjustment of some factors that can not be compared when comparing different enterprises.

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