financial accounting and analysis assignment

Course Resources

Assignments.

The assignments in this course are openly licensed, and are available as-is, or can be modified to suit your students’ needs. Answer keys are available to faculty who adopt Lumen Learning courses with paid support. This approach helps us protect the academic integrity of these materials by ensuring they are shared only with authorized and institution-affiliated faculty and staff.

If you import this course into your learning management system (Blackboard, Canvas, etc.), the assignments will automatically be loaded into the assignment tool.

You can view them below or throughout the course.

Module 0: Personal Accounting— Assignment: Creating a Budget
Module 1: The Role of Accounting in Business— Assignment: Lopez Consulting
Module 2: Accounting Principles— Assignment: Accounting Principles
Module 3: Recording Business Transactions— Assignment: Recording Business Transactions
Module 4: Completing the Accounting Cycle— Assignment: Completing the Accounting Cycle
Module 5: Accounting for Cash— Assignment: Accounting for Cash
Module 6: Receivables and Revenue— Assignment: Manilow Aging Analysis
Module 7: Merchandising Operations— Assignment: Merchandising Operations
Module 8: Inventory Valuation Methods— Assignment: Inventory Valuation Methods
Module 9: Property, Plant, and Equipment— Assignment: Property, Plant, and Equipment
Module 10: Other Assets— Assignment: Other Current and Noncurrent Assets
Module 11: Current Liabilities— Assignment: Calculating Payroll at Kipley Co
Module 12: Non-Current Liabilities— Assignment: Non-Current Liabilities
Module 13: Accounting for Corporations— Assignment: Collins Mfg Stockholders’ Equity
Module 14: Statement of Cash Flows— Assignment: Kachina Sports Company Cash Flows
Module 15: Financial Statement Analysis— Assignment: Coca Cola FSA

Discussions

The following discussion assignments will also be preloaded (into the discussion-board tool) in your learning management system if you import the course. They can be used as is, modified, or removed. You can view them below or throughout the course.

Module 0: Personal Accounting— Discussion: Winning the Lottery
Module 1: The Role of Accounting in Business— Discussion: The Crafty Coffee Crook
Module 2: Accounting Principles— Discussion: SoftSheets
Module 3: Recording Business Transactions— Discussion: Baker’s Breakfast Bars
Module 4: Completing the Accounting Cycle— Discussion: Closing the Books in QuickBooks
Module 5: Accounting for Cash— Discussion: Counter Culture Cafe
Module 6: Receivables and Revenue— Discussion: Maximizing Revenue
Module 7: Merchandising Operations— Discussion: Inventory Controls
Module 8: Inventory Valuation Methods— Discussion: LIFO, FIFO, Specific Identification, and Weighted Average
Module 9: Property, Plant, and Equipment— Discussion: Cooking the Books
Module 10: Other Assets— Discussion: Other Assets
Module 11: Current Liabilities— Discussion: Current Liabilities
Module 12: Non-Current Liabilities— Discussion: Off-Balance Sheet Financing
Module 13: Accounting for Corporations— Discussion: Home Depot
Module 14: Statement of Cash Flows— Discussion: Facebook, Inc.
Module 15: Financial Statement Analysis— Discussion: Financial Statement Analysis

Alternative Excel-Based Assignments

For Modules 3–15, additional excel-based assignments are available below.

Module 3: Recording Business Transactions

Module 3 Excel Assignment A
Module 3 Excel Assignment B

Module 4: The Accounting Cycle

Module 4 Excel Assignment A
Module 4 Excel Assignment B
Module 4 Excel Assignment C
Module 4 Excel Assignment D

Module 5: Accounting for Cash

Module 5 Excel Assignment

Module 6: Receivables and Revenue

Module 6 Excel Assignment A
Module 6 Excel Assignment B

Module 7: Merchandising Operations

Module 7 Excel Assignment

Module 8: Inventory Valuation Methods

Module 8 Excel Assignment A
Module 8 Excel Assignment B
Module 8 Excel Assignment C

Module 9: Property, Plant, and Equipment

Module 9 Excel Assignment A
Module 9 Excel Assignment B

Module 10: Other Assets

Module 10 Excel Assignment

Module 11: Current Liabilities

Module 11 Excel Assignment

Module 12: Non-Current Liabilities

Module 12 Excel Assignment A
Module 12 Excel Assignment B

Module 13: Accounting for Corporations

Module 13 Excel Assignment A
Module 13 Excel Assignment B
Module 13 Excel Assignment C

Module 14: Statement of Cash Flows

Module 14 Excel Assignment A
Module 14 Excel Assignment B

Module 15: Financial Statement Analysis

Module 15 Excel Assignment

Review Problems

There are also three unit review assignments and a final review. These reviews include a document which sets up the problems and an excel worksheet.

Unit 1 Review Problem (After Module 6)

Review Problem Document

Unit 2 Review Problem (After Module 8)

Unit 3 review problem (after module 9), final review (after module 15).

Assignments. Authored by : Cindy Moore and Joe Cooke. Provided by : Lumen Learning. License : CC BY: Attribution

Introduction to Financial Accounting

(4 reviews)

David Annand, Athabasca University

Henry Dauderis

Last Update: 2021

Publisher: Lyryx

Language: English

Formats Available

Conditions of use.

Learn more about reviews.

Reviewed by Katheryn Zielinski, Assistant Professor, Minnesota State University Mankato on 6/14/23

Comprehensiveness rating: 5 see less

The text reading follows typical financial accounting flow. Beginning with the foundational introduction to what accounting is through the full accounting cycle, while including financial statement analysis towards the end of the book. Students will find the format helpful; the voice is student-friendly. There is online homework help for students. Instructors will find the text format friendly to semester-long class as concepts broken down into 13 chapters. The chapters explain the learning outcomes, use examples to express concepts, with chapter summary at end. The topics included are consistent with intro accounting courses.

Content Accuracy rating: 5

No issues noticed with accuracy. The text includes accurate financial accounting information.

Relevance/Longevity rating: 5

For an introductory accounting class with focus on US the concepts covered are typical.

Clarity rating: 5

The content is presented in a student friendly manner. Answers are provided. The extra information is helpful for students wanting extra practice.

Consistency rating: 5

The format and layout of the book chapters are consistent. All users will quickly understand the format as it is applied the same to each chapter. This helps provide consistency for students learning introductory accounting.

Modularity rating: 5

The content within the chapters can be broken-down and assigned as instructor plans for the course length. The manner is which the material is presented flows easily as reading.

Organization/Structure/Flow rating: 5

The text organization is consistent and coherent. Each chapter is presented in same manner.

Interface rating: 5

No observed tech issues. PDF downloaded and used with ease.

Grammatical Errors rating: 5

No grammar or language issues.

Cultural Relevance rating: 5

No cultural insensitive or offensive context noted.

This is a student friendly text. However, students might find a glossary helpful, as well as an index.

Reviewed by Lawrence Overlan, Part-time Professor, Bunker Hill Community College on 6/4/20

I appreciate how the Statement of Cash Flows has a separate chapter towards the end of the book. Might be better to wait until that chapter instead of also discussing it in Chapter One.....lots of material for opening week.... read more

Comprehensiveness rating: 4 see less

I sampled several problems...all correct.

Hard to make accounting obsolete. All the required material is present.

Problems are presented clearly and with good font size. Excellent color schemes and graphics.

Yes....no problems detected in this area. Very straightforward.

Chapters contain the right amount of content. Not too long with out breakup diagrams or examples etc.

Standard flow of chapters with excellent subdivisions.

To the contrary, the graphics and flow charts break up the material very nicely.

No issues noticed in this area.

Nice work! I will definitely consider adopting.

Reviewed by Patty Goedl, Associate Professor, University of Cincinnati Clermont College on 3/27/18

The text covers all of the topics normally found in an introductory financial accounting (principles of accounting I) text. The table of contents essentially mirrors the table of contents found in the leading texts in this field. I like that... read more

Content is error-free, accurate, and unbiased.

Relevance/Longevity rating: 4

The content is up-to-date. Introductory accounting does not change often so future updates should be minimal. The authors used the year 2015 in most of the problem and examples. This might make the text "seem" out-of-date in a few years.

The book is clear and concise. The topics are clearly explained and the technical terminology is appropriate for an introductory level.

The writing, style, and formatting are consistent throughout this text.

The text is divided into topical chapters, which is appropriate considering that the concepts build on each other. The chapters are further subdivided into sub-topics. This makes it easy for an instructor to pick which sub-topics to cover.

Excellent organization and flow. The concepts logically build upon each other and the material is presented in a clear fashion.

The HTML interface is excellent. The book has good graphics, end of chapter content, and even video examples.

I did not notice grammatical errors.

The text is not culturally insensitive or offensive in any way

Excellent book that is comparable to any of the leading financial accounting titles. The authors even provide end of chapter problems, videos, and interactive Excel problems for students. Overall, a great resource! I commend the authors for making something of this caliber freely available.

Reviewed by Margarita Maria Lenk, Associate Professor, Colorado State University on 1/7/16

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It is written by Canadian authors, but is relevant to US students. The text begins by explaining the role of financial accounting in society, and then describes the underlying structure of double entry accounting systems and the process of recording economic events that impact the value of the organization through the journals and the ledger. The records of these events are then summarized into the primary financial statements. The numeric subtotals and totals on these statements are used to calculate standard financial measures and ratios used to evaluate the organization's performance. The text's organization then proceeds sequentially through the balance sheet accounts, explaining in more detail how the accounting for each category of economic value is recorded and reported. The author's decision to move the most complex content to the end of the book matches how most faculty choose to organize their coverage of these topics.

My reviewed resulted in highest marks regarding accuracy. The only possible concern I would mention here is that the authors use a commonly used technique in chapter two which sometimes leads to students misunderstanding that revenues and expenses are not part of owners' equity until the revenues and expenses are closed at year end to retained earnings. It is my preference to teach introductory students that revenues and expenses are distinct and separate from equity, and then explain that revenues and expenses ultimately get closed to equity. So, this is not an inaccuracy by the authors, just a point that some instructors may want to know before adopting the textbook.

It is my opinion that the content of this textbook will be relevant and current for at least a decade. Any changes made to accounting principles, Canadian or International, will be very easy and straightforward to update.

It is my opinion that the clarity of this text is very high. The authors are succinct and use visuals often to highlight the theoretical structures.

This test is very consistent with the framework that is set up by the authors in the beginning of the text.

The textbook is very clearly divided into separable modules, making it easy for both students to read and for instructors to choose which modules to include in their course.

The content of this textbook matches the content and organization of most introductory financial accounting textbooks. It begins by explaining the role of financial accounting in society, and then describes the underlying structure of double entry accounting systems and the process of recording economic events that impact the value of the organization through the journals and the ledger. The records of these events are then summarized into the primary financial statements. The numeric subtotals and totals on these statements are used to calculate standard financial measures and ratios used to evaluate the organization's performance. The text's organization then proceeds sequentially through the balance sheet accounts, explaining in more detail how the accounting for each category of economic value is recorded and reported. The author's decision to move the most complex content to the end of the book matches how most faculty choose to organize their coverage of these topics.

The online text worked perfectly in my Chrome browser. The end of chapter exercises and problems are perfectly formatted on the screen. All assessment materials (quizzes, exams, etc.) are located on a different site that requires registration to have access.

I found the grammar to be very clear, concise and very effective. Because the book is written by Canadians, expenses are sometimes referred to as revenue expenditures, which does not match how US textbooks refer to expenses, but is perhaps a better learning tool, as the expenses are always recorded in the period in which they match the revenue generation, so I support the authors' choices regarding how they refer to the difference between assets (capital expenditures) and expenses (revenue expenditures).

The textbook adequately refers to the international accounting standards. That is the only cultural relevance which is relevant to introductory financial accounting.

I found this textbook and its exercises to be a useful teaching and learning tool. Instructors and students have access to pre-made PowerPoint slides, exercises and problems, and there is the option to enrol in an online service for online assessments, which seem to have student feedback capabilities in addition to assessment gathering capabilities.

The Accounting Process
Financial Accounting and Adjusting Entries
The Classified Balance Sheet and Related Disclosures
Accounting for the Sale of Goods
Assigning Costs to Merchandise
Cash and Receivables
Long-lived Assets
Debt Financing: Current and Long-term Liabilities
Equity Financing
The Statement of Cash Flows
Financial Statement Analysis
Proprietorships and Partnerships

Ancillary Material

About the book.

This textbook is an adaptation by Athabasca University of the original text written by D. Annand and H. Dauderis. It is intended for use in entry-level college and university courses in financial accounting. A corporate approach is utilized consistently throughout the book.

The adapted textbook includes multiple ancillary student and instructor resources. Student aids include solutions to all end-of-chapter questions and problems, and randomly-generated spreadsheet problems that cover key concepts of each chapter. These provide unlimited practice and feedback for students. Instructor aids include an exam bank, lecture slides, and a comprehensive end-of-term case assignment. This requires students to prepare 18 different year-end adjusting entries and all four types of financial statements, and to calculate and analyze 16 different financial statement ratios. Unique versions can be created for any number of individual students or groups. Tailored solutions are provided for instructors.

The original Annand/Dauderis version of the textbook including .docx files and ancillary material remains available upon request to D. Annand ([email protected]).

About the Contributors

David Annand, EdD, MBA, CA, is a Professor of Accounting in the Faculty of Business at Athabasca University. His research interests include the educational applications of computer-based instruction and computer mediated communications to distance learning, the effects of online learning on the organization of distance-based universities, and the experiences of instructors in graduate-level computer conferences.

David completed his Doctorate in Education in 1998. His thesis deals with the experiences of instructors in graduate-level computer conferences.

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Financial Statement Analysis
How It Works

Types of Financial Statements

Financial performance.

Financial Statement Analysis FAQs
Corporate Finance
Financial statements: Balance, income, cash flow, and equity

Financial Statement Analysis: How It’s Done, by Statement Type

financial accounting and analysis assignment

Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications.

What Is Financial Statement Analysis?

Financial statement analysis is the process of analyzing a company’s financial statements for decision-making purposes. External stakeholders use it to understand the overall health of an organization and to evaluate financial performance and business value. Internal constituents use it as a monitoring tool for managing the finances.

Key Takeaways

Financial statement analysis is used by internal and external stakeholders to evaluate business performance and value.
Financial accounting calls for all companies to create a balance sheet, income statement, and cash flow statement, which form the basis for financial statement analysis.
Horizontal, vertical, and ratio analysis are three techniques that analysts use when analyzing financial statements.

Jiaqi Zhou / Investopedia

How to Analyze Financial Statements

The financial statements of a company record important financial data on every aspect of a business’s activities. As such, they can be evaluated on the basis of past, current, and projected performance.

In general, financial statements are centered around generally accepted accounting principles (GAAP) in the United States. These principles require a company to create and maintain three main financial statements: the balance sheet, the income statement, and the cash flow statement. Public companies have stricter standards for financial statement reporting. Public companies must follow GAAP, which requires accrual accounting. Private companies have greater flexibility in their financial statement preparation and have the option to use either accrual or cash accounting.

Several techniques are commonly used as part of financial statement analysis. Three of the most important techniques are horizontal analysis , vertical analysis , and ratio analysis . Horizontal analysis compares data horizontally, by analyzing values of line items across two or more years. Vertical analysis looks at the vertical effects that line items have on other parts of the business and the business’s proportions. Ratio analysis uses important ratio metrics to calculate statistical relationships.

Companies use the balance sheet, income statement, and cash flow statement to manage the operations of their business and to provide transparency to their stakeholders. All three statements are interconnected and create different views of a company’s activities and performance.

Balance Sheet

The balance sheet is a report of a company’s financial worth in terms of book value. It is broken into three parts to include a company’s assets , liabilities , and shareholder equity . Short-term assets such as cash and accounts receivable can tell a lot about a company’s operational efficiency; liabilities include the company’s expense arrangements and the debt capital it is paying off; and shareholder equity includes details on equity capital investments and retained earnings from periodic net income. The balance sheet must balance assets and liabilities to equal shareholder equity. This figure is considered a company’s book value and serves as an important performance metric that increases or decreases with the financial activities of a company.

Income Statement

The income statement breaks down the revenue that a company earns against the expenses involved in its business to provide a bottom line, meaning the net profit or loss. The income statement is broken into three parts that help to analyze business efficiency at three different points. It begins with revenue and the direct costs associated with revenue to identify gross profit . It then moves to operating profit , which subtracts indirect expenses like marketing costs, general costs, and depreciation. Finally, after deducting interest and taxes, the net income is reached.

Basic analysis of the income statement usually involves the calculation of gross profit margin, operating profit margin, and net profit margin, which each divide profit by revenue. Profit margin helps to show where company costs are low or high at different points of the operations.

Cash Flow Statement

The cash flow statement provides an overview of the company’s cash flows from operating activities, investing activities, and financing activities. Net income is carried over to the cash flow statement, where it is included as the top line item for operating activities. Like its title, investing activities include cash flows involved with firm-wide investments. The financing activities section includes cash flow from both debt and equity financing. The bottom line shows how much cash a company has available.

Free Cash Flow and Other Valuation Statements

Companies and analysts also use free cash flow statements and other valuation statements to analyze the value of a company . Free cash flow statements arrive at a net present value by discounting the free cash flow that a company is estimated to generate over time. Private companies may keep a valuation statement as they progress toward potentially going public.

Financial statements are maintained by companies daily and used internally for business management. In general, both internal and external stakeholders use the same corporate finance methodologies for maintaining business activities and evaluating overall financial performance .

When doing comprehensive financial statement analysis, analysts typically use multiple years of data to facilitate horizontal analysis. Each financial statement is also analyzed with vertical analysis to understand how different categories of the statement are influencing results. Finally, ratio analysis can be used to isolate some performance metrics in each statement and bring together data points across statements collectively.

Below is a breakdown of some of the most common ratio metrics:

Balance sheet : This includes asset turnover, quick ratio, receivables turnover, days to sales, debt to assets, and debt to equity.
Income statement : This includes gross profit margin, operating profit margin, net profit margin, tax ratio efficiency, and interest coverage.
Cash flow : This includes cash and earnings before interest, taxes, depreciation, and amortization (EBITDA) . These metrics may be shown on a per-share basis.
Comprehensive : This includes return on assets (ROA) and return on equity (ROE) , along with DuPont analysis .

What are the advantages of financial statement analysis?

The main point of financial statement analysis is to evaluate a company’s performance or value through a company’s balance sheet, income statement, or statement of cash flows. By using a number of techniques, such as horizontal, vertical, or ratio analysis, investors may develop a more nuanced picture of a company’s financial profile.

What are the different types of financial statement analysis?

Most often, analysts will use three main techniques for analyzing a company’s financial statements.

First, horizontal analysis involves comparing historical data. Usually, the purpose of horizontal analysis is to detect growth trends across different time periods.

Second, vertical analysis compares items on a financial statement in relation to each other. For instance, an expense item could be expressed as a percentage of company sales.

Finally, ratio analysis, a central part of fundamental equity analysis, compares line-item data. Price-to-earnings (P/E) ratios, earnings per share, or dividend yield are examples of ratio analysis.

What is an example of financial statement analysis?

An analyst may first look at a number of ratios on a company’s income statement to determine how efficiently it generates profits and shareholder value. For instance, gross profit margin will show the difference between revenues and the cost of goods sold. If the company has a higher gross profit margin than its competitors, this may indicate a positive sign for the company. At the same time, the analyst may observe that the gross profit margin has been increasing over nine fiscal periods, applying a horizontal analysis to the company’s operating trends.

Congressional Research Service. “ Cash Versus Accrual Basis of Accounting: An Introduction ,” Page 3 (Page 7 of PDF).

Internal Revenue Service. “ Publication 538 (01/2022), Accounting Periods and Methods: Methods You Can Use. ”

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Multiple Choice

Answers will vary but should include factors such as starting salaries, value of fringe benefits, cost of living, and other monetary factors.

Answers will vary but should include considerations such as price, convenience, features, ease of purchase, availability, and other decision-making factors.

Responses should comment on the growth Netflix has experienced. Although this may have been due to subscription price increases, the biggest driver of these increases is the number of subscriptions. While this is only a few data points, it does appear likely that Netflix will continue to grow sales in the next year or so. Factors influencing this prediction would be competition, changes in the streaming market, and economic considerations.

Answers will vary, but responses should state, in a sentence or two, the primary purpose of the entity. The goal of this exercise is to have students clearly communicate why the entity exists, the stakeholders served by the entity, and the role accounting plays in the organization.

Answers will vary but should highlight aspects of each model: Brick-and-mortar : higher investment in physical storefront, interior, etc., to attain visual appeal; insurance and regulatory requirements; space/storage considerations; lower delivery costs; no delivery time. Online : less overhead costs, higher delivery costs, higher website and technology costs, competition.

Manufacturer: movies; service: hotels, restaurants, waste removal, entertainment; retail: shopDisney, clothes and apparel.

Answers will vary but should include the key services of the SEC related to regulation and enforcement. You may be particularly interested to explore the SEC’s whistle-blowing initiatives. Responses regarding required filings for publicly traded companies should include a discussion about the relationship between transparency and protecting the public interest. The significant amount of invested capital by the investing public is also relevant to the discussion.

Answers will vary but should include the increase in popularity of energy drinks and Monster’s partnership with the Coca-Cola Company (which now owns close to a 17% stake in Monster). Considerations as to whether or not to purchase Monster shares today would include the estimated future performance of the company, the energy drink market, purchasing at a high point, etc.

Answers will vary but should include a discussion of the importance for accountants to provide information that is unbiased. Accountants have an obligation to protect the public interest by reporting information that is useful for decision-making but does not sway the user in a particular way. Accountants are in a unique position where they serve many stakeholders, including their employer, clients, and the public. The interests of all stakeholders must be considered while maintaining the highest level of integrity.

Answers will vary and may include certifications/licensing in nursing, information technology, engineering, human resources management, counseling, medicine, and many other occupations.

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Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper
Publisher/website: OpenStax
Book title: Principles of Accounting, Volume 1: Financial Accounting
Publication date: Apr 11, 2019
Location: Houston, Texas
Book URL: https://openstax.org/books/principles-financial-accounting/pages/1-why-it-matters
Section URL: https://openstax.org/books/principles-financial-accounting/pages/chapter-1

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Financial Statement Analysis

Written by True Tamplin, BSc, CEPF®

Reviewed by subject matter experts.

Updated on June 08, 2023

Fact Checked

Why Trust Finance Strategists?

What is financial statement analysis.

Financial statement analysis is one of the most fundamental practices in financial research and analysis.

In layman’s terms, it is the process of analyzing financial statements so that decision-makers have access to the right data.

Financial statement analysis is also used to take the pulse of a business. Since statements center on a company’s key financial details, they are useful for evaluating activities.

This is essential to understanding the firm’s overall performance.

What Are Financial Statements?

According to the American Institute of Public Accounts, financial statements are prepared for the following purposes:

Presenting a periodical review or report on the progress made by the management
Dealing with the status of investments in the business and the results achieved during the period under review

Financial statements reflect a combination of recorded facts, accounting conventions, and personal judgments.

The judgments and conventions that are applied are dependent on the competence and integrity of those who make them and on their adherence to generally accepted accounting principles (GAAP) and conventions.

Public companies are forced to keep track of their financial statements in very specific ways through a balance sheet, income statement, and cash flow statement.

However, private companies often underestimate the importance of these statements because they are not required to keep track of them. It’s not that they don’t create them, but they typically don’t use them to their full benefit.

Let’s consider the following important financial documents:

Balance Sheet: Details a company’s value based on its assets , liabilities , and shareholder equity . We can learn a lot about the efficiency of a business’s operations from its short-term cash flow and accounts receivable.
Income Statement: An income statement breaks down a company’s earnings by comparing expenses and revenue . It is broken down into separate categories that businesses can use to help them identify profitable areas.
Cash Flow Statement : This report shows a company’s cash flow in terms of operational activities, financial ventures, and investments .

Tools and Techniques Used For Financial Statement Analysis

Financial statement analysis is centered on the balance sheet, income statement, and cash flow statement. It is the best way to gauge the overall health of a business.

There are several tools and techniques with which this is done, including:

Fundamental Analysis: This analytical practice is used on a company’s most basic financial levels. It shows the health of the business on a financial level and helps provide insight into the overall value.
DuPont Analysis: This tool is used to help companies prevent conclusions that are misleading. Sometimes, looking at sheer profitability doesn’t tell the whole story, so DuPont Analysis is used to create a detailed assessment.
Horizontal Analysis: Here, we compare financial ratios, a specified benchmark, and a specified line item over a specific period. This allows firms to examine changes that have been made and compare them with other behaviors.
Vertical Analysis: This financial analytical practice shows items within the financial statement as a percentage of the base figure. It’s simple, so it’s the method that most businesses prefer.

Value of Financial Statement Analysis When Analyzing and Reporting Financial Statements

Now that we’ve gone over some of the basics, let’s dive deeper into financial research and analysis. Here’s what makes financial statement analysis such a powerful tool.

Identifying the Industry’s Economic Characteristics

Financial statement analysis can identify several important factors in a business’s marketplace, sometimes finding smaller niches that are other methods miss.

We can use financial statement analysis to determine market size, compare competitors , and investigate the growth rate of a market as it relates to a variable such as spending.

It’s also possible to look beyond your own company and find out how others are faring in new markets before you decide to invest in them.

Another powerful tool that a lot of brands are using is product differentiation analysis. This method crunches financial numbers to see how well a brand’s products and prices are holding up against others in the same market.

There are several factors at play here, including distribution, purchasing, and advertising costs .

Identifying Company Strategies

All entrepreneurs understand the importance of finding the right strategy to meet the needs of their business. They spend a lot of time searching for the perfect one.

When you break it all down, the blueprint is usually the same, whether it’s developing a business plan or developing advanced strategies. That blueprint is defined by data.

The only difference between the two is that a business strategy is focused more on the future and the development of the business.

Once a strategy is established, then it has to be measured. The only true way to get accurate results is to compare financials.

Most strategies evolve, and financial analysis helps steer us in the right direction. For example, a detailed financial statement analysis will reveal the direction your company is moving. It will be the first indicator if growth is not where you want it to be.

Assessing the Quality of a Company’s Financial Statements

All businesses must have a method of efficiently analyzing their financial statements. This process requires three key points of understanding that must always be accounted for.

These can all be found through a sound financial statement analysis.

Businesses must identify the economic characteristics of their industry and compare their finances to the average.
Companies must be able to identify which strategies are profitable and which are not.
Businesses must be able to gauge the quality of their financial statements.

Inaccurate financial statements are common in small businesses. If left unchecked, this will lead down a path of ruin.

Financial research and analysis are the best way to ensure that these valuable reports are steering your growth in the right direction.

Analyzing Profitability and Identifying Potential Business Risks

Every business strategy has risks, and the majority of those risks are felt on a financial level. Therefore, it’s important for businesses to devise ways to identify and mitigate these risks.

While it’s not possible to avoid every risk, we can identify them before they cause too much damage. This is done by keeping a close eye on profitability.

Noteworthily, then, financial statement analysis helps you to keep track of profitability ratios, enabling you to truly measure the overall value of a strategy moving forward.

Preparing Financial Statement Forecasts

Forecasts are how companies predict the direction in which their business is heading. These forecasts need to be aligned with the company’s overall goals.

Income , cash flow, and balance sheets must all be closely monitored to ensure that they are aligned with the organization’s overall growth objectives.

Financial statement analysis is the practice that the world’s leading businesses engage in to stay ahead of their competitors.

Financial Statement Analysis FAQs

What is financial statement analysis.

Financial Statement Analysis is the process of analyzing a company’s financial statements and using this information to gauge its performance over time, assess its current condition, and make predictions about future performance.

Why is Financial Statement Analysis important?

Financial Statement Analysis is an essential tool for investors and financial professionals as it can help them better understand a company’s financial health and improve their decision-making processes when making investments or loan decisions.

What types of Financial Statements are analyzed?

The three main financial statements used in Financial Statement Analysis are the Balance Sheet, Income Statement, and Cash Flow statement.

What analysis techniques are used to review Financial Statements?

Common analysis techniques used in Financial Statement Analysis include trend analysis, vertical and horizontal analyses, ratio analysis, and cash flow statement analysis.

What information can be gathered through Financial Statement Analysis?

Financial Statement Analysis can provide insights into a company’s financial position, performance over time, liquidity and solvency, profitability, the efficiency of operations, and more. It can also be used to assess the quality of accounting practices and risk levels.

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide , a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University , where he received a bachelor of science in business and data analytics.

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Financial Accounting and Reporting Classroom Materials

Financial Accounting and Reporting is an important part of the accounting curriculum. The skills students learn in your classroom will not only prepare them for more advanced courses, but to one day succeed in a career. The below are supplemental curriculum resources that the AICPA Academics team have reviewed and think can be used in the classroom.

Award-Winning Curricula

The Academics team is proud to offer award-winning curricula designed to encourage faculty and expand the knowledge of accounting students. The curricula below is from the Accounting Professors Curriculum Resource tool and has been recognized for excellence with the Bea Sanders/AICPA Innovation and Teaching Award , the George Krull/Grant Thornton AAA Innovation in Junior and Senior-Level Teaching Award, or the Mark Chain/FSA Innovation in Graduate Teaching Award .

A Better Way to Teach Effective Interest Method Related Problems in Accounting This resource presents a simpler method of teach accounting problems involving the use of the effective interest method. The method stimulates student interest by focusing on the economics of the transaction and relating it to real-life examples.
Accounting in the Headlines: A News Blog for the Introductory Accounting Classroom This resource shares Wendy Tietz's "Accounting in the Headlines" blog in which she writes stories about real-life companies and events that can be used in the accounting classroom to illustrate introductory financial and managerial accounting concepts.
Accounting Challenge (ACE): Mobile-Gaming App for Learning Accounting Accounting Challenge is the first mobile-gaming app for teaching financial accounting. ACE aims to enhance learning of accounting outside the classroom by engaging students to play and learn accounting on the go.
A FASB Accounting Standards Codification Project for Introductory Financial Accounting This exercise is designed as a team project in which introductory accounting students act as a consultants to a client seeking guidance on issues surrounding a start-up venture. Students must access and cite the Codification as the basis for the materials they submit in fulfillment of the project requirements.
Attracting the Best and Brightest to Accounting: Establishing an Honors Accounting Course This resource presents one school's approach to attracting and recruiting the best and brightest students toward accounting by offering an honors accounting course.
Beyond Debits and Credits... Service Learning in Accounting This resource presents a service learning project implemented in two accounting courses to enhance student skills in communication and teamwork.
Business From the Idea to the Seasoned Offering: Accounting and Financial Statements Reflecting Business Activities This project takes accounting education from bookkeeping to holistic active business learning including how financial statements build to reflect the business.
Chocolate: Accounting as a First year Seminar This resource provides a thematic approach at combining first year seminars and accounting programs using student activities that are simultaneously engaging and assessable.
Creative Strategies for Teaching MBA Level Accounting This resource presents a new concept for teaching accounting to MBA level students. At its heart, accounting centers on measurement of historical transactions or the measurement of future opportunities. this course turns the focus from rules, to the tools leaders need to manage a complex organization.
Cultivating Deep Learning in the Principles of Accounting Classes through Philanthropy-Based Education This philanthropy project goes beyond service learning or volunteerism. Students make real decisions that have immediate impacts on their community. Students award funding to not-for-profit agencies based on a competitive proposal process.
Digital Storytelling for Engaged Student Learning This resource uses digital story telling, a movie, to enhance students' technical competence in accounting. The story uses 12 episodes to follow three young business graduates who started their own business and discover along the way the role of financial information in managing a business venture.
FASB Accounting Standards Codification: Student-Authored Research Exercises This resource is based on the notion that the best way to learn something is to teach it. Students in a financial accounting graduate class demonstrate their master of GAAP research skills by creating research assignments using the FASB Accounting Standards Codification.
Forming Groups in the Age of YouTube This resource uses a variation of speed dating as a means for forming groups in an introductory accounting class. By learning more about their classmates prior to self-selecting a group this method allows students to choose better groups.
Getting Started in the Throughbred Horse Business: A Review of Some Basic Accounting Principles This resource provides reinforcement of common accrual accounting concepts centered on the breeding and racing operations of a small thoroughbred horse business. This curriculum is appropriate to use after students have been exposed to fixed assets, inventory, profit and loss and cash flow reporting.
IFRS Immersion This resource provides instructions for teaching an IFRS course from the standpoint of foreign companies that have already dealt with the problems and issues associated with converting from local GAAP to international GAAP.
IFRS Projects Using Dual Reporting of IFRS and U.S. GAAP This resource illustrates integrating IFRS learning into financial accounting curricula by incorporating valuable contrasting information from the dual reporting.
Integrated Accounting Principles: A New Approach to Traditional Accounting Principles Courses This resource describes an integrated accounting principles course that combines traditional financial and managerial accounting courses into a single six hour course.
Introducing Freshmen Students in the Accounting/Finance Course to the Library This resource describes a series of online, interactive tutorials and quizzes to help students learn fundamental concepts and skills of company and industry related research.
Introduction to Financial Accounting Case Project: Arctic Blast Ice Cream Store This case provides an opportunity for students to apply accounting concepts to a simple business venture. The project lasts 4-6 weeks and covers three distinct phases of the management process: business decision making, performance and evaluation.
Let's Go to the Movies: Using Movies as an Ethics Assignment This project involves students watching a series of predetermined movies and noting the ethical dilemma. At the end of the semester each student must defend one of the movies as a nominee for "A Must See Ethics Movie" for accounting/business students.
Mini-responsibility Centers: A Strategy for Learning by Leading This resource explains the concept of using mini-responsibility centers (MRCs) to decentralize large financial, managerial and cost accounting courses. In return the students are more focused and engaged.
Modeling Uncertainty in C-V-P Assignments: Going Beyond the Basics! This resource provides an outline for using the Monte Carlo Simulation to offer graduate students an opportunity to rapidly come to insights about probabilistic model building and interpretation. The simulation combines quantitative skills and qualitative skills along with reports and presentations.
Northwind Data Query Exercise This project encourages students to consider the evolution of data sources for financial reporting and evaluate how to acquire and manipulate information in this emerging business reality; by actually practicing queries and exporting information to worksheets.
Reinventing Student Engagement and Collaboration within Introductory Accounting Courses This resource provides ideas for increasing engagement and collaboration in the introductory accounting class. Examples include student projects, flipped classroom applications and in-class problems.
Responsibilities and Choices: An Active Engagement Exercise for Introductory Accounting Courses This exercise provides students with an opportunity to perform a basic due diligence task, complete a relatively simple working paper to document their work and make a decision. The exercise has embedded moral temptation and ethical issues and examines ethical choices that students make in the presence of time pressure and reward structures that encourage aggressive performance.
TeachingIFRS.com This document provides information on TeachingIFRS.com which was created in response to the rapid growth of IFRS and lack of high quality and effective teaching resources. The site consolidates and provides links to numerous freely available IFRS pedagogical materials.
Testing Critical Thinking Skills in Accounting Principles This resource describes a method for testing critical thinking skills in an accounting principles course. Using this method, each testing period is divided into two parts. First, students complete an individual traditional test. The second part is a critical thinking exercise called "the challenge problem".
The Accounting Profession Post Sarbanes-Oxley: An Approach to Impart Knowledge About the Conceptual Framework and Attract Students to the Accounting Major This document provides the description of a program entitled "The Accounting Profession Post Sarbanes-Oxley". The program provides students with an opportunity to better understand important elements of the conceptual framework. It also provides an overview of the career opportunities in accounting.
The Accounting Tournament - March Madness in Financial Accounting This resource describes implementation of an end of year comprehensive review using brackets as a model. Students are randomly placed in the bracket and compete against each other for extra credit points.
The Amazing Accounting Race: An Introductory Accounting Semester Project This project engages students with an exciting internet race around the professional world of accounting. Students obtain clues to complete tasks, encounter detours, road blocks and fast forwards. The assignments utilize students' synthesis skills and computer application skills as they collect facts about accounting careers from the internet and assemble data in an organized format.
The College to Professional Experience This resource outlines a program that serves to better prepare students for the "real world" by changing the perception of education from "learning by doing" to "doing and making to learn with technology". The project aims to move beyond traditional models of education to leverage technology to facilitate new methods of delivery and understanding.
The Farming Game and the Introductory Financial Accounting Course: An Accounting Simulation The Farming Game enables students to develop many of the skill-based competencies needed by students entering the accounting profession, regardless of career path. The Game provides experiential learning of various accounting principles. It is a learning opportunity that offers students a degree of reality and a larger view of the system.
Understand FX Risk by Playing Monopoly This resource uses a short version of Monopoly to understand the FX risk impact on net income.
Back to the Future: Using Accounting History to Explore Professional Opportunities In this project students read an article about a period of time in accounting history and present their findings to the class in a video format. Students then tie what they have learned in the presentations to the field of accounting today as well as the future.
From Pacioli to Picasso: Using Art to Enhance Critical Thinking in Accounting Capstone Courses This resource outlines using name cards, picture drawings and classic artwork to help students enhance their critical thinking skills. The exercise sets the tone for a course that requires them to think about more than rules and regulations and instead delve into the "why" and "what could be."
Digging Deep: Using Forensic Analytics as a Context to Teach Microsoft Excel and Access This resource describes a graduate level case that focuses on the development of technology skills through the lens of forensic analysis.
Who Moved My Classroom? Community Linked Learning and Assessment This resource describes three exercises that expand learning beyond the classroom. The first exercise allows students to discover the linkage between classroom studies and what practitioners do in the "real world". The second allows students to apply the COSO model to internal controls. The third requires students to interpret financial statements for a friend.

Additional Materials

Here are additional materials we reviewed and think are useful to incorporate into the classroom.

IIRC Database of Research on Integrated Reporting The International Integrated Reporting Council (IIRC) launched the <IR> Academic Database, a searchable collection of more than 200 articles, books, chapters, dissertations, and other pieces of scholarly research on the advancement, adoption, and practice of integrated reporting.
A destination is only as good as its compass. The new My 360 is here to help you create a free plan personalized to your financial needs by helping guide you through all the resources 360 Degrees of Financial Literacy has to offer.

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Financial Accounting and Analysis

Are you one of those professionals who is curious and wants to learn about financial statements, but is intimidated by financial numbers and jargon? Then this course is for you!

In this course, we will demystify accounting jargon, help you understand financial statements and analyse them for better decisions. Whatever be your background – marketing, operations, supply chain, strategy, engineering or others, in today’s competitive world, you need to use and interpret crucial financial data for making informed decisions.

This course will enable you to:

Understand the various elements of financial statements
Apply accounting principles related to its preparation
Use tools and techniques to analyse and interpret the key parameters of financial performance

The course has direct application and high relevance in every professional’s life. Concepts learnt in the course can be applied in day to day management for improving operations and creating value for the organization. You will also be able to assess financial implications of your decisions.

The course will be covered in an easy, simple and interactive manner through various hands-on activities, short cases and easy-to-understand examples.

No previous finance knowledge is needed. Come armed with enthusiasm and curiosity to learn.

What you'll learn:

Basic financial concepts
Financial statements and their elements
Various accounting standards with respect to the elements in the financial statements
Techniques to analyse the financial statements
Interpretation of financial statements for better decision-making

Page Visits

Course layout.

Introduction to Accounting
Using Financial Information for Decision Making
Introduction to the Accounting System
Understanding Business Transactions: A Visit to Raj Cafe
Recording through Accounting Equation
Preparing Financial Statements for Raj Cafe
Preview of Upcoming Weeks
Introduction to the Elements of Balance Sheet: Assets, Liabilities and Equity
Non-current Assets
Current Assets
Non-current Liabilities
Current Liabilities
Introduction to Income Statement and Related Accounting Concepts
Important Elements of the Income Statement
Introduction to Cash Flow Statement
Statement of Comprehensive Income and Statement of Changes in Equity
Overview - Traditional Accounting
Introduction to the Accounting Process
Trial Balance
Understanding Adjustment Entries and Preparing Financial Statements
What is Financial Statement Analysis
Students Analyzing the Financial Statements
Horizontal Analysis of Financial Statements
Common Size Analysis of Financial Statements
Ratio Analysis Part I
Recap - Week 4
Ratio Analysis Part 2
Final Recap

Books and references

Instructor bio.

Padmini Srinivasan

Course certificate.

EXAMINATION:

Type of exam: Computer based exam

You will have to appear at the allotted exam centre and produce your Hall ticket and Government Photo Identification Card for verification and take the exam in person. You can find the final allotted exam centre details in the hall ticket. The questions will be on the computer and the answers will have to be entered on the computer; type of questions may include multiple choice questions, fill in the blanks, essay type (subjective) type, etc.

GRADING AND CERTIFICATE:

Weightage : 25% weightage for weekly assignment + 75% weightage for final exam.

Passing Marks: You will be eligible for Certificate only if you score minimum 40% in Weekly Assessment and minimum 40% in Final Exam . If you score less than 40% in either weekly assessments (average) or in final exam, you will not receive the certificate.

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4.21: Assignment- Financial Statements of Business Organizations

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SEMESTER-2 ASSIGNMENT-FINANCIAL ACCOUNTING & ANALYSIS

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GAAP vs. IFRS Depreciation: Methods, Impacts, and Case Studies

Explore the nuances of GAAP vs. IFRS depreciation methods and their impacts on financial statements and industry practices.

Understanding the nuances between GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards) is crucial for businesses operating in a globalized economy. These two accounting frameworks dictate how companies report their financial performance, with significant implications for stakeholders.

One of the critical areas where GAAP and IFRS diverge is depreciation methods. This difference can affect everything from asset valuation to tax liabilities, making it essential for accountants, auditors, and financial analysts to grasp these distinctions thoroughly.

Key Differences in Depreciation Methods

Depreciation, the process of allocating the cost of tangible assets over their useful lives, is treated differently under GAAP and IFRS. Under GAAP, companies often use the straight-line method, which spreads the cost evenly over the asset’s life. This method is straightforward and provides consistency, making it a popular choice among U.S.-based companies. However, GAAP also allows for accelerated depreciation methods, such as the double-declining balance method, which front-loads depreciation expenses. This can be advantageous for companies looking to reduce taxable income in the early years of an asset’s life.

In contrast, IFRS offers more flexibility in choosing depreciation methods. While the straight-line method is also common under IFRS, companies can opt for the diminishing balance method or units of production method, depending on which best reflects the asset’s usage pattern. The units of production method, for instance, ties depreciation to actual output, making it particularly useful for industries where asset wear and tear is closely linked to production levels, such as manufacturing and mining.

Another notable difference is the component approach mandated by IFRS. This approach requires companies to depreciate significant parts of an asset separately if they have different useful lives. For example, an aircraft might have its engines, airframe, and interior fittings depreciated individually. This level of granularity can lead to more accurate financial reporting but also increases the complexity of accounting processes.

Impact on Financial Statements

The choice between GAAP and IFRS depreciation methods can significantly influence a company’s financial statements, affecting both the balance sheet and income statement. Under GAAP, the use of accelerated depreciation methods like the double-declining balance can lead to higher depreciation expenses in the early years of an asset’s life. This results in lower net income initially, which can be strategically beneficial for tax purposes. However, as the asset ages, depreciation expenses decrease, leading to higher net income in later years. This shifting expense pattern can impact earnings volatility and investor perceptions.

IFRS, with its flexible approach to depreciation, allows companies to align depreciation expenses more closely with the actual usage and wear of assets. For instance, the units of production method can result in variable depreciation expenses that mirror production levels. This can provide a more accurate reflection of an asset’s consumption and its contribution to revenue generation. Consequently, financial statements under IFRS may present a more realistic view of a company’s operational efficiency and asset utilization.

The component approach under IFRS further refines financial reporting by requiring separate depreciation for significant parts of an asset. This granularity ensures that financial statements reflect the true economic value and wear of each component, leading to more precise asset valuations. For example, an airline depreciating an aircraft’s engines separately from its airframe can provide clearer insights into maintenance costs and asset longevity. This detailed reporting can enhance transparency and aid stakeholders in making more informed decisions.

Impairment Losses Treatment

Impairment losses, which occur when the carrying amount of an asset exceeds its recoverable amount, are treated differently under GAAP and IFRS, leading to varied impacts on financial statements. Under GAAP, the impairment process is a two-step approach. First, companies must determine if an asset’s carrying amount is not recoverable by comparing it to the sum of the undiscounted future cash flows expected from the asset. If the carrying amount is not recoverable, the impairment loss is measured as the difference between the carrying amount and the asset’s fair value. This method can sometimes delay the recognition of impairment losses, as it relies on undiscounted cash flows, which may not immediately reflect declines in asset value.

In contrast, IFRS employs a one-step approach that is often seen as more straightforward and timely. Companies must compare the carrying amount of an asset directly to its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The value in use is calculated using discounted future cash flows, providing a more immediate reflection of an asset’s impaired state. This approach can lead to earlier recognition of impairment losses, offering a more current view of an asset’s financial health. The use of discounted cash flows under IFRS can also result in more conservative asset valuations, which may appeal to investors seeking a cautious assessment of a company’s financial position.

The differences in impairment loss treatment extend to the subsequent reversal of these losses. Under GAAP, once an impairment loss is recognized, it cannot be reversed if the asset’s value later recovers. This conservative stance ensures that financial statements do not overstate asset values, but it can also mean that companies may carry undervalued assets on their books. IFRS, on the other hand, allows for the reversal of impairment losses if there is an indication that the asset’s recoverable amount has increased. This flexibility can lead to more dynamic financial reporting, reflecting real-time changes in asset values and potentially providing a more accurate picture of a company’s financial health over time.

Industry-Specific Considerations

The choice between GAAP and IFRS can have varying implications depending on the industry in which a company operates. For instance, in the technology sector, where rapid innovation and short product life cycles are common, the flexibility of IFRS in choosing depreciation methods can be particularly advantageous. Companies can align depreciation with the actual usage patterns of their assets, providing a more accurate reflection of their financial health. This can be crucial for tech firms that need to demonstrate efficient asset utilization to attract investors.

In the real estate industry, the component approach mandated by IFRS can offer significant benefits. Real estate companies often deal with complex assets comprising multiple components with different useful lives, such as buildings, elevators, and HVAC systems. Depreciating these components separately can lead to more precise financial reporting, aiding in better asset management and maintenance planning. This level of detail can also enhance transparency, making it easier for stakeholders to assess the true value and condition of real estate holdings.

Manufacturing companies, which frequently invest in heavy machinery and equipment, may find the units of production method under IFRS particularly useful. This method ties depreciation to actual output, providing a more accurate picture of asset wear and tear. It can also help in aligning depreciation expenses with revenue generation, offering a clearer view of operational efficiency. This can be especially beneficial for companies in cyclical industries, where production levels can vary significantly over time.

Managing Fixed Assets: Acquisition, Depreciation, and Disposal

Managing intangible assets: valuation, amortization, reporting, you may also be interested in..., chart of accounts: structuring for financial clarity, accounting for extraordinary repairs: criteria, treatment, and impacts, accounting for deposits on fixed assets demystified, accounting for unpaid salaries: key components and implications.

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Chapter 16B

Section 16b.97.

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2023 Subd. 2 Amended 2023 c 62 art 7 s 2
2023 Subd. 3 Amended 2023 c 62 art 7 s 3
2023 Subd. 4 Amended 2023 c 62 art 7 s 4
2015 Subd. 1 Amended 2015 c 77 art 2 s 9
2010 Subd. 5 New 2010 c 365 art 1 s 9
2007 16B.97 New 2007 c 148 art 2 s 22

16B.97 GRANTS MANAGEMENT.

Subdivision 1. grant agreement..

(a) A grant agreement is a written instrument or electronic document defining a legal relationship between a granting agency and a grantee when the principal purpose of the relationship is to transfer cash or something of value to the recipient to support a public purpose authorized by law instead of acquiring by professional or technical contract, purchase, lease, or barter property or services for the direct benefit or use of the granting agency.

(b) This section does not apply to general obligation grants as defined by section 16A.695 and capital project grants to political subdivisions as defined by section 16A.86 .

Subd. 2. Grants governance.

The commissioner shall provide leadership and direction for policy related to grants management in Minnesota in order to foster more consistent, streamlined interaction between executive agencies, funders, and grantees that will enhance access to grant opportunities and information and lead to greater program accountability and transparency. The commissioner has the duties and powers stated in this section. Executive agencies shall fully cooperate with the commissioner in the creation, management, and oversight of state grants and must do what the commissioner requires under this section. The commissioner may adopt rules to carry out grants governance, oversight, and management.

Subd. 3. Discretionary powers.

The commissioner has the authority to:

(1) review grants management practices and establish and enforce policy and procedure improvements;

(2) sponsor, support, and facilitate innovative and collaborative grants management projects with public and private organizations;

(3) review, recommend, and implement alternative strategies for grants management;

(4) collect and disseminate information, issue reports relating to grants management, and sponsor and conduct conferences and studies;

(5) participate in conferences and other appropriate activities related to grants management issues;

(6) suspend or debar grantees from eligibility to receive state-issued grants for up to three years for reasons specified in Minnesota Rules, part 1230.1150 , subpart 2. A grantee may obtain an administrative hearing pursuant to sections 14.57 to 14.62 before a suspension or debarment is effective by filing a written request for hearing within 20 days of notification of suspension or debarment;

(7) establish offices for the purpose of carrying out grants governance, oversight, and management; and

(8) require granting agencies to submit grant solicitation documents for review prior to issuance at dollar levels determined by the commissioner.

Subd. 4. Duties.

(a) The commissioner shall:

(1) create general grants management policies and procedures that are applicable to all executive agencies. The commissioner may approve exceptions to these policies and procedures for particular grant programs. Exceptions shall expire or be renewed after five years. Executive agencies shall retain management of individual grants programs;

(2) provide a central point of contact concerning statewide grants management policies and procedures;

(3) serve as a resource to executive agencies in such areas as training, evaluation, collaboration, and best practices in grants management;

(4) ensure grants management needs are considered in the development, upgrade, and use of statewide administrative systems and leverage existing technology wherever possible;

(5) oversee and approve future professional and technical service contracts and other information technology spending related to executive agency grants management systems and activities;

(6) provide a central point of contact for comments about executive agencies violating statewide grants governance policies and about fraud and waste in grants processes;

(7) forward received comments to the appropriate agency for further action, and may follow up as necessary;

(8) provide a single listing of all available executive agency competitive grant opportunities and resulting grant recipients;

(9) selectively review development and implementation of executive agency grants, policies, and practices; and

(10) selectively review executive agency compliance with best practices.

(b) The commissioner may determine that it is cost-effective for agencies to develop and use shared grants management technology systems. This system would be governed under section 16E.01, subdivision 3 , paragraph (b).

Subd. 5. Data classification.

Data maintained by the commissioner that identify a person providing comments to the commissioner under subdivision 4, paragraph (a), clauses (6) and (7), are private and nonpublic data but may be shared with the executive agency that is the subject of the comments.

2007 c 148 art 2 s 22 ; 2010 c 365 art 1 s 9 ; 2015 c 77 art 2 s 9 ; 2023 c 62 art 7 s 2 -4

Official Publication of the State of Minnesota Revisor of Statutes

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Load Flow Analysis

This course is part of Industrial Power Systems Analysis and Stability Specialization

Taught in English

Instructor: Subject Matter Expert

Financial aid available

Recommended experience

Intermediate level

Basics of Power Generation, Transmission and Distribution Systems

What you'll learn

Get insights on formation of bus impedance and bus admittance matrices through various methods and suitable examples

Obtain the load flow solution of a power system network with conventional techniques supported with simple numerical examples and ETAP simulations

Formulate DC and AC-DC load flow problem and their solution approaches with numerical examples

Skills you'll gain

Power Flow Analysis
AC and DC load flow analysis
Network Matrices
Simulations

Details to know

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3 assignments

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There are 3 modules in this course

This course is designed to provide a comprehensive analysis of various solution techniques available for load flow analysis of power system networks.

Objectives By the end of this course, you will be able to: • Declare the need for model formulation of power system network and derive the model formulation equations of a network with suitable illustrations. (BL3) • Deduce the need and applications for tap changers in transformers and arrive at the representation of off nominal tap changing transformer with pi model equivalent circuit. (BL3) • Develop a comprehensive understanding of the formation of bus impedance and bus admittance matrices using appropriate techniques and illustrate with numerical examples. (BL4) • Illustrate the concept of graph theory in bus admittance matrix formation and discuss the sparsity in power systems. (BL4) • Discover the algorithm/flowchart of various numerical solution techniques such as Gauss-Seidel, Newton Raphson and Fast Decoupled algorithms used to obtain load flow solution of power system networks and examine a comparative analysis of these algorithms. (BL4) • Elucidate the concept of DC and AC-DC load flow equations and their solution with suitable algorithms and case study/examples. (BL4) This course provides a specialized focus on network model formulation and construction of network matrices, namely, bus admittance and bus impedance matrices supported with real time test system. The course touches upon the detailed procedure of applying iterative solution techniques such as Gauss-Seidel, Newton-Raphson, and Fast Decoupled methods to solve the load flow problem imbibed with demonstrations of live examples. The course stands out for its hands-on ETAP demonstrations, which is an industrial software used in power grid sectors, providing learners with practical skills in the field of power system design and analysis. To be successful in this course, you should have a background in basic electrical engineering principles, including knowledge of circuit analysis, electromagnetism, transmission and distribution of electrical power, per unit computation and modeling of power system components. Familiarity of any simulation packages such as MATLAB, POWER WORLD will be beneficial for hands-on exercises. By enrolling in this course, participants will not only gain theoretical knowledge but also practical skills that are directly applicable in the field of power system analysis and design Whether you're a student aspiring to enter the industry or a professional seeking to deepen your expertise, this course offers a unique blend of theoretical insights and hands-on applications, equipping you with the tools to excel in this dynamic field.

LOAD FLOW SOLUTION FOR POWER SYSTEM NETWORKS - PART - I

Let’s begin this course by understanding the network topology of a power system network and formation of network matrices namely bus admittance and bus impedance matrices, which finds application for various power system studies.

What's included

14 videos 2 readings 1 assignment 1 discussion prompt

14 videos • Total 159 minutes

About the Specialization • 5 minutes • Preview module
About the Course • 6 minutes
Model Formulation Equations for the Power System Network • 9 minutes
Modelling of Nominal Ratio Transformer • 20 minutes
Modelling of Off Nominal Tap Changing Transformer • 17 minutes
Primitive Network in Impedance and Admittance form • 5 minutes
Formation of Bus Impedance Matrix using Bus Building Algorithm • 11 minutes
Formation of Bus Admittance Matrix using Direct Inspection Method • 11 minutes
Sparsity in Power System • 6 minutes
Numerical Problems on Formation of Bus Impedance Matrix • 15 minutes
Numerical Problems on Formation of Bus Admittance Matrix • 15 minutes
Elementary Graph Theory • 8 minutes
Formation of Bus Incidence Matrix using Graph Theory • 11 minutes
Numerical Problem on Ybus formation using Singular Transformation Method • 16 minutes

2 readings • Total 20 minutes

Course Reading • 10 minutes
Course Glossary • 10 minutes

1 assignment • Total 30 minutes

ASSESSMENT FOR LOAD FLOW SOLUTION FOR POWER SYSTEM NETWORKS - PART - I • 30 minutes

1 discussion prompt • Total 10 minutes

Load Flow Solution for Power System Networks - Part-I • 10 minutes

LOAD FLOW SOLUTION FOR POWER SYSTEM NETWORKS - PART - II

This module imparts knowledge on development of power flow equations in rectangular form and polar form and obtaining load flow solution for a given power system network using Gauss-Seidel and Newton Raphson iterative techniques.

13 videos 1 assignment 1 discussion prompt

13 videos • Total 119 minutes

Introduction to Load Flow Analysis • 8 minutes • Preview module
Power Flow Problem Statement • 8 minutes
Classification of Buses in Power System • 10 minutes
Formulation of Load Flow Equations in Polar form • 4 minutes
Jacobian Matrix in Power Systems • 10 minutes
Gauss-Seidel Method of Load Flow Solution • 11 minutes
Significance of Acceleration factor and Convergence Characteristics • 9 minutes
Numerical Problems on Gauss-Seidel Method of Load Flow Analysis - Part 1 • 13 minutes
Numerical Problems on Gauss-Seidel Method of Load Flow Analysis - Part 2 • 4 minutes
Newton Raphson Load Flow Equations in Cartesian Coordinates • 7 minutes
Algorithm and Flowchart of Newton Raphson Method of Load Flow Solution • 8 minutes
Numerical Problems on Newton Raphson Method of Load Flow Analysis • 11 minutes
Demonstration of Load Flow Analysis of a Three-Bus System using ETAP Software • 11 minutes
ASSESSMENT FOR LOAD FLOW SOLUTION FOR POWER SYSTEM NETWORKS - PART - II • 30 minutes
Load Flow Solution for Power System Networks - Part-II • 10 minutes

LOAD FLOW SOLUTION FOR POWER SYSTEM NETWORKS - PART - III

This module aims to explore the Fast Decoupled Load Flow method, DC Load Flow Method and AC-DC Load Flow method through a structured algorithm/flowchart and suitable illustrations of interest.

11 videos 1 reading 1 assignment 1 discussion prompt

11 videos • Total 100 minutes

Fast Decoupled Load Flow Algorithm • 7 minutes • Preview module
Flowchart for Fast Decoupled Load Flow Method • 5 minutes
Numerical Problems-I on Fast Decoupled Method of Load Flow Analysis • 7 minutes
Numerical Problems-II on Fast Decoupled Method of Load Flow Analysis • 24 minutes
Demonstration of Load Flow Analysis of a Three-Bus System in ETAP Software using Fast Decoupled Load Flow Method • 3 minutes
Comparision of GS, NR and FDLF methods of load flow solution • 7 minutes
HVDC Power System and DC Load Flow Equations • 10 minutes
Formulation of AC-DC Load Flow Problem • 13 minutes
Flowchart for AC-DC Load Flow Solution Method • 3 minutes
DC Load Flow Analysis - Case Study • 10 minutes
AC-DC Load Flow Analysis - Case Study • 5 minutes

1 reading • Total 10 minutes

Algorithm for DC Load Flow Solution and Numerical Example • 10 minutes
ASSESSMENT FOR LOAD FLOW SOLUTION FOR POWER SYSTEM NETWORKS - PART - III • 30 minutes
Load Flow Solution for Power System Networks - Part-III • 10 minutes

Larsen & Toubro popularly known as L&T is an Indian Multinational conglomerate. L&T has over 8 decades of expertise in executing some of the most complex projects including the World's tallest statue - the Statue of Unity. L&T has a wide portfolio that includes engineering, construction, manufacturing, realty, ship building, defense, aerospace, IT & financial services. L&T EduTech is a e learning platform within the L&T Group, that offers courses that are curated & delivered by industry experts. In the world of engineering and technology, change and advancements are happening at the speed of light. Academia needs to keep pace with this change and career professionals need to adapt. This is the need gap L&T EduTech will fill. The vision for L&T EduTech is to be the bridge between academia and industry, between career professionals and ever-changing technology. L&T EduTech firmly believes that, only when these need gaps are filled, will we have truly empowered and knowledgeable workforce that will lead India in the future.

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Frequently asked questions

When will i have access to the lectures and assignments.

Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:

The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.

The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

What will I get if I subscribe to this Specialization?

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

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Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

Bulletin 24-01 - Guidelines Regarding Standby Pay

1.0 - SUBJECT: Guidelines Regarding Standby Pay

2.0 - EFFECTIVE DATE: June 9, 2024

3.0 - DISTRIBUTION: State of Kansas HR Directors & Managers

4.0 - FROM: Kraig Knowlton, Deputy Secretary of Management & Director of Personnel Services DATE: May 23, 2024

5.0 - PURPOSE: Kansas Administrative Regulation (K.A.R.) 1-5-26 establishes the stand-by compensation policy for non-exempt, State of Kansas employees. Stand-by compensation applies when an employee is required at the direction of an agency to remain available to the agency for set periods of time outside of the employee’s regularly scheduled work hours. The regulation provides that employees are compensated at $1.00 per hour for this time, and that amount can be increased pursuant to Memoranda of Agreements (MOA’s) with employee organizations. While K.A.R. 1-5-26 establishes the authority and broad technical parameters for the use of stand-by compensation, there is very little guidance with respect to the use of stand-by compensation provided in the regulation .This has resulted in the inconsistent use of stand-by compensation throughout the State workforce, including frequent examples of employees who are required to be on stand-by for virtually every hour of every day outside of their regular work schedule throughout the year. This Bulletin is being issued to establish guidelines and clarify expectations regarding the administration of stand-by compensation and the provisions outlined below will become effective with the pay period beginning on June 9, 2024.

6.0 - PROCEDURES:

6.1 - Although the regulation states that stand-by assignments are to be limited to work situations where “a probability of emergency recall of a non-exempt employee or employees exists,” stand-by should only be used in situations where there is a high probability of emergency recall, not just any probability.

a) It is also important to note that the high probability must be for emergency recall of the employee. This means that the situation for which stand-by is being required must be one that could result in an emergency, not an inconvenience or something that could wait until the employee or another employee’s regular work hours to be addressed.

6.2 - While receiving stand-by compensation, an employee must be able to access work devices and/or report to the workplace within a reasonable timeframe and be capable of performing necessary duties.

a) If an employee is traveling, attending an event or otherwise does not have access to a work device or the ability to return to the workplace, they should not be receiving stand-by compensation.

b) Similarly, if an employee is ill, has consumed alcohol or taken medication that impairs their ability to perform necessary duties, they should not be receiving stand-by compensation.

c) Employees who receive stand-by compensation should be made aware of these expectations, and if they know that they will be unable to abide by them, they should inform their supervisor so that the agency can make other arrangements.

6.3 - While some regular or routine duties are ongoing, such as monitoring of building or IT systems, the same employees should not be on stand-by for every hour outside of their regularly scheduled duties, every workweek, throughout the year.

a) Based on the expectations set out in subsection 6.2 above, it is simply not reasonable to expect a single employee to be continuously available to the agency every hour outside of their regular work schedule of every day of the year.

b) Work-Life balance is incredibly important, and employees must have the ability to live their lives and have “down time” during which they are not subject to emergency recall, so agencies should avoid the continuous assignment of stand-by responsibilities to the same employees every pay period.

c) Whenever possible, these duties should be rotated amongst multiple employees. In situations where other non-exempt employees are not available for stand-by assignments, supervisory and management staff in exempt positions should assume those responsibilities.

d) Any employee who is to be scheduled for stand-by responsibilities should be notified of those responsibilities at least one week in advance of when those responsibilities are to take effect.

e) Therefore, effective with the date of this Personnel Bulletin, no employee should receive stand-by compensation in excess of 80 hours in a workweek without receiving express approval from the Department of Administration, Office of Personnel Services (OPS) prior to exceeding that total.

f) In general, no employee should receive stand-by compensation after having used accrued leave in excess of two hours during their regularly scheduled work hours. Exceptions may be made on a case-by-case basis but must be approved by OPS.

g) Routine audits will be conducted, and violations of the provisions of this Bulletin will be reported to the Governor’s Office.

7.0 - REFERENCES: K.A.R. 1-5-26 8.0 - CONTACT PERSONS:

For General Policy Questions: Danelle Harsin, Deputy Director [email protected] (785) 296-4383

For SHARP Questions: Michelle Huntsman, HR Professional [email protected] (785) 296-7232

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