XiangYu Meng

I have a basic understanding of the financial accounting profession. Accounting for Decision Making was a course I took during my bachelor's degree. The knowledge learned includes ratio calculation. I rember we need use three years profit ratio, asset efficiency ratio, liquidity ratio and capital structure ratio to calculate the annual difference. For example, to calculate the average equity of return on equity in profitability ratio, a company's equity at the beginning of the year is US$1,000,000, and its equity at the end of the year is US$1,200,000. You need to add the value at the beginning of the year to the value at the end of the year and divide by 2 to get the average equity, which will be 1,100,000. There are many other related calculation part, such as how to calculate the average total assets of the return on assets, etc. and than, I learned a basic understanding of an introduction to annual reports and financial statements. The first part requires an understanding of the company's background and main core businesses, as well as the company's diversified operations and the company's operating principles. Regarding the directors' reporting structure, it is necessary to understand the common stock equity of the company's directors to make an aggregate. Find out online how many "subsidiaries" or "controlled entities" there are in the group. The second part is about the financial statements, calculating the company's net asset investment amount and comparing the annual changes. It is necessary to analyze the reasons using the annual changes in total equity and compare the annual differences in current assets. In addition, the net profit also needs to be compared and the reasons explained. Part III also requires the use of financial statement analysis tools, producing ratio calculations, profit and loss (horizontal and vertical), balance sheets and trend charts.