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

Review of Financial Statements - Essay ExampleIn this case, also whole type of liabilities accounts i.e. current and non current liabilities accounts ordain be affected. For example, accounts purchases, sundry current liabilities, interest payable, bank loans, unyielding term debt etc2) The financial statements which will show the impact of the transaction at the time of merge will be balance sheet and interchange flow statements. Since in merger a unanimous acquires another(prenominal) 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 good will for the merger. (Warren, Reeve, & Duchac, 2008)It is also important to note that the income statement may also be affected if acquiring firm has to expense out some earlier losses of th e acquiring firm through provisioning. However, this may not be