University:
Maryville University
Course:
ACCT 210 | Financial Accounting
Academic year:

2024
Views:

59

Pages:

1
Author:

Charlee Buchanan

The company I will use today to explain the financial statement is Airtel Tanzania Limited. This is a telecom company in Tanzania providing services like voice, data, sms and mobile money. The company has other investor and that is Tanzania government which owns about 49% shares and the rest 51% owned by the owner Sunil Bharti Mittal (Bharti Airtel of India). Airtel has its financial year which starts April 1st of every year, they have four quarters which are April-June, July-September, October-December and January-March. (Wikipedia 2020) Financial statements these are the reports prepared by accountants for the purpose of showing the detailed financial status of the company for the period of time. These statements they are categorized in four categories and these are Income Statement, Statement of Owner’s Equity, Balance Sheet and Statement of Cash flows. Today I will get into Airtel’s financial statements and show how it helps the business owner, employees and investor. Starting with Income Statement, this statement shows the performance of the company for the period of time. This statement helps a lot to show how the company is performing for the period of time and the information shows are revenue, expenses and loss and profit. When the accountants provide the report this helps a lot to understand where the company is at that period of time and start to get to know where to improve if there is loss employs they must know and make new strategies for persuading and reach their goals. The owner and the investor they get the report quarterly so that they can understand what is going on with the company and this helps if they are needed to invest more or not it will depend with the report. Statement of Owner’s Equity is another statement being reported by accountants in Airtel. This statement shows the net worth or value of Airtel for the period of one financial year. This report helps the owner and investor to see the value of the company and see if it worth to continue doing the business. If the owner and investor of Airtel see that the company doesn’t worth they can make decision after reviewing the report because no one will want to run the business which is not worth. Balance Sheet this is the statement generated after accountants have completed the statement of owner’s equity. Here we will see the Airtel Company’s what assets own, liabilities owe and what is worth. In this report helps to understand the company position and this will help the stakeholders to understand the position of the company in generally. The fourth and last statement is Statement of Cash flows this statement shows the inflows and outflows of the Airtel business quarterly. This report will show where do cash come from and where does it go out. The report helps the owner and the investor of Airtel to see how cash has been spent in the company and this is very helpful them because you cannot invest somewhere and not being provided the report which shows the inflow and outflow cash of your money. So this report is being generated quarterly to the stakeholders are being given. I would like to conclude by saying any company needs financial statement because they are important for someone to understand where the company is going and get to know what next need to be done in order to make more profit in future.