Review of Financial Statements Essay Example | Topics and Well Written Essays - 250 words

Review of Financial Statements - Essay ExampleIn this case, also all type of liabilities accounts i.e. on-line(prenominal) and non current liabilities accounts will be modify. For example, accounts purchases, sundry current liabilities, interest payable, bank loans, long term debt etc2) The financial statements which will show the impact of the transaction at the sequence of merge will be ease sheet and cash flow statements. Since in merger a firm acquires another firm therefore balance sheet will record the changes in the assets as well as the liabilities of the firm and the resulting changes in them. Another financial statement which will be affected by this is cash flow statement which will record the movement of any cash paid to the owners/shareholders as the consideration for the merger. (Warren, Reeve, & Duchac, 2008)It is also important to cite that the income statement may also be affected if acquiring firm has to expense out some earlier losses of the acquiring firm thr ough and through provisioning. However, this may not be