LearningCat: Components of Financial Statements

Statement of Changes in Equity
The reconciliation of the opening and closing balances of shareholder equity is known as the Statement of Changes in Equity. The Statement of Changes in Equity functions as a financial statement, detailing the transactions related to the shareholder’s equity during a given financial period. This report captures fluctuations in retained earnings, additional reserves, and adjustments […]
Profit & Loss Statement
What is Profit & Loss Statement? A profit & loss statement can be defined as a financial report that shows a firm’s expenses, revenue, and net profit & loss for a required period of time. The required time period depends on the company’s desire, and it can usually be a month, quarter, or year. Typically, […]
Balance Sheet
A balance sheet is an accounting document that is used to show a firm’s assets, liabilities, and shareholders’ equity with respect to a certain date. It helps not only in a firm’s capital framework but also in determining the rate of return for shareholders. For basic analysis and calculating financial ratios, the balance sheet is […]
Knowing How to Estimate Replacement Costs in the Indian Financial System
Replacement cost estimation holds a vital position in the fields of accounting and finance. The purpose of this is to find out the cost of replacing an item at today’s price. Important decisions like investments, insurance, and financial reporting are made based on this. Why Replacement Cost Estimation Matters? Insurance Valuation: Insurance companies rely on […]