Other information used in financial analysis

Variant 20

1. 
   Other information used in financial analysis.
   
2. 
   Analysis of production volumes, costs and profitability analysis (CVP analysis).
   
3. 
   The main sections of the financial analysis are: financial analysis, investment analysis, analysis of the securities market, forecasting of financial statements.
   

1. Except the main part of information there are also other sources of information which are used in financial analysis. They are followings:

- application documents;

- project and forecast data;

- statistics reports;

- container reports;

- people's reports;

- management accounting and management report data.
The constituent documents include the Charter, which defines the order and conditions of the company's activity. The charter establishes the organizational legal form of the enterprise, its name, location, the charter capital structure, procedures of formation of its governing and controlling bodies, distribution of profits, procedures of formation of funds, procedures of reorganization and liquidation of the enterprise.

Project (planned) data and forecast business data can be seen as the most important support for managing the business, improving business reputation and improving the financial situation.

Statistical reports allow for the management of the Company's key issues to be addressed. It helps to know about:

- constant awareness of the positive and negative changes in the process and its results;

- assessment of their quality by analyzing the indicators;

- forming a safe and practical affair with sensitive entities;

- management of business on the basis of facts;

- etc.

Procedures for preparation and submission of statistical reporting are determined by the State Committee for Statistics of the Republic of Uzbekistan. The following state statistical reporting for economic entities is established:

- domestic sales;

- investment and construction sales;

- industry statistics and the others.

Creation and submission of statistical reports of economic entities is based on the norms of the law.

Tax reports. A tax report is a taxpayer's tax and other mandatory payment, or bill of lading, and tax returns, as well as their appendices, by the Tax Committee and the Ministry of Finance in the form approved. The taxpayer shall submit the report to the tax authority at the place where the taxpayer is registered, within the prescribed time limit.

People's Bank Reports. The People's Bank reports summarize information on individual and voluntary accumulative pension funds and submit them to popular fame.

Management Accounting is an account that provides the manager and managers of the enterprise with the information they need to make a comprehensive scientifically sound decision. Management data are used only for managing personnel of economic entities.

Management Reports are reports that are prepared on a voluntary basis and submitted to enterprise management on the basis of management accounting data.
2. Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit. Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income. In performing this analysis, there are several assumptions made, including:

• 
  Sales price per unit is constant.
  
• 
  Variable costs per unit are constant.
  
• 
  Total fixed costs are constant.
  
• 
  Everything produced is sold.
  
• 
  Costs are only affected because activity changes.
  
• 
  If a company sells more than one product, they are sold in the same mix.
  

CVP analysis requires that all the company's costs, including manufacturing, selling, and administrative costs, be identified as variable or fixed.

СVP ANALYSIS ARE DESIGNATED FOR THREE DIRECTIONS:

First, it determains breakevent point. In this point entity does not take profit or not incurred loss for secure.

Secondly, it can reveal profit zone and the best point in which entity get more profit or provide that the best profiabilness.

Thirdly, entity (specialists ) can decrease the fixed cost, then they can earn profit instead of the decreased part of fixed cost.

The CVP formula can be used to calculate the sales volume needed to cover costs and break even, in the CVP breakeven sales volume formula, as follows:

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