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美的2023年财务报告英文版As of December 31, 2023, we are pleased to present the financial report for the year. Despite the challenges posed by the global economic landscape, we are proud to report a strong performance in 2023.Revenue for the year reached $10.5 billion, representing a 8% increase from the previous year. This growth can be attributed to our continued focus on innovation and customer satisfaction. Our investment in new product development and marketing initiatives has paid off, as we have seen increased demand for our products across all regions.Operating income for the year was $2.1 billion, a 10% increase from the previous year. This increase is a result of our efforts to streamline operations and improve efficiency across the organization. We have also been successful in managing our costs, which has contributed to the overall improvement in operating income.Net income for the year was $1.5 billion, a 12% increase from the previous year. This growth is a testament to our commitment to delivering value to our shareholders. We have focused on maximizing profitability while also investing in the future growth of the company.In terms of our balance sheet, we have maintained a strong financial position. Our total assets stand at $25 billion, with a healthy mix of cash, investments, and property. Our liabilities are well-managed, with a manageable level of debt and adequate provisions for future obligations.Looking ahead, we remain cautiously optimistic about the future. While the global economic environment remains uncertain, we are confident in our ability to navigate any challenges that may arise. We will continue to focus on innovation, customer satisfaction, and operational excellence to drive future growth and success.In conclusion, we are pleased with the strong performance in 2023. Our focus on delivering value to our customers and shareholders has paid off, and we are well-positioned for continued success in the future. We would like to express our gratitude to our employees, customers, and shareholders for their continued support, and we look forward to the opportunities and challenges that lie ahead.。
资料范本本资料为word版本，可以直接编辑和打印，感谢您的下载财务报表(中英文版)地点：__________________时间：__________________说明：本资料适用于约定双方经过谈判，协商而共同承认，共同遵守的责任与义务，仅供参考，文档可直接下载或修改，不需要的部分可直接删除，使用时请详细阅读内容标准版的财务报表（中英文版）资产负债表 Balance Sheet项目 ITEM货币资金 Cash短期投资 Short term investments应收票据 Notes receivable应收股利 Dividend receivable应收利息 Interest receivable应收帐款 Accounts receivable其他应收款 Other receivables预付帐款 Accounts prepaid期货保证金 Future guarantee应收补贴款 Allowance receivable应收出口退税 Export drawback receivable存货 Inventories其中：原材料 Including:Raw materials产成品(库存商品) Finished goods待摊费用 Prepaid and deferred expenses待处理流动资产净损失 Unsettled G/L on current assets一年内到期的长期债权投资 Long-term debenture investment falling due in a yaear其他流动资产 Other current assets流动资产合计 Total current assets长期投资： Long-term investment：其中:长期股权投资 Including long term equity investment长期债权投资 Long term securities investment*合并价差 Incorporating price difference长期投资合计 Total long-term investment固定资产原价 Fixed assets-cost减：累计折旧 Less:Accumulated Dpreciation固定资产净值 Fixed assets-net value减：固定资产减值准备 Less:Impairment of fixed assets固定资产净额 Net value of fixed assets固定资产清理 Disposal of fixed assets工程物资 Project material在建工程 Construction in Progress待处理固定资产净损失 Unsettled G/L on fixed assets固定资产合计 Total tangible assets无形资产 Intangible assets其中:土地使用权 Including and use rights递延资产（长期待摊费用）Deferred assets其中:固定资产修理 Including:Fixed assets repair固定资产改良支出 Improvement expenditure of fixed assets其他长期资产 Other long term assets其中:特准储备物资 Among it:Specially approved reserving materials 无形及其他资产合计 Total intangible assets and other assets递延税款借项 Deferred assets debits资产总计 Total Assets资产负债表(续表) Balance Sheet项目 ITEM短期借款 Short-term loans应付票款 Notes payable应付帐款 Accounts payab1e预收帐款 Advances from customers应付工资 Accrued payro1l应付福利费 Welfare payable应付利润(股利) Profits payab1e应交税金 Taxes payable其他应交款 Other payable to government其他应付款 Other creditors预提费用 Provision for expenses预计负债 Accrued liabilities一年内到期的长期负债 Long term liabilities due within one year 其他流动负债 Other current liabilities流动负债合计 Total current liabilities长期借款 Long-term loans payable应付债券 Bonds payable长期应付款 long-term accounts payable专项应付款 Special accounts payable其他长期负债 Other long-term liabilities其中:特准储备资金 Including:Special reserve fund长期负债合计 Total long term liabilities递延税款贷项 Deferred taxation credit负债合计 Total liabilities* 少数股东权益 Minority interests实收资本(股本) Subscribed Capital国家资本 National capital集体资本 Collective capital法人资本 Legal person"s capital其中:国有法人资本 Including:State-owned legal person"s capital 集体法人资本 Collective legal person"s capital个人资本 Personal capital外商资本 Foreign businessmen"s capital资本公积 Capital surplus盈余公积 surplus reserve其中:法定盈余公积 Including:statutory surplus reserve公益金 public welfare fund补充流动资本 Supplermentary current capital* 未确认的投资损失（以“-”号填列） Unaffirmed investment loss 未分配利润 Retained earnings外币报表折算差额 Converted difference in Foreign Currency Statements所有者权益合计 Total shareholder"s equity负债及所有者权益总计 Total Liabilities & Equity================================================================= ===利润表 INCOME STATEMENT项目 ITEMS产品销售收入Sales of products其中：出口产品销售收入 Including：Export sales减：销售折扣与折让 Less：Sales discount and allowances产品销售净额Net sales of products减：产品销售税金Less：Sales tax产品销售成本 Cost of sales其中：出口产品销售成本Including：Cost of export sales产品销售毛利 Gross profit on sales减：销售费用 Less：Selling expenses管理费用General and administrative expenses财务费用Financial expenses其中：利息支出(减利息收入) Including：Interest expenses (minusinterest ihcome)汇兑损失(减汇兑收益) Exchange losses(minus exchange gains) 产品销售利润Profit on sales加：其他业务利润Add：profit from other operations营业利润Operating profit加：投资收益Add：Income on investment加：营业外收入Add：Non-operating income减：营业外支出Less：Non-operating expenses加：以前年度损益调整Add：adjustment of loss and gain for previous years利润总额 Total profit减：所得税 Less：Income tax净利润 Net profit================================================================= =现金流量表Cash Flows StatementPrepared by: Period: Unit:Items1.Cash Flows from Operating Activities:01)Cash received from sales of goods or rendering of services02)Rental receivedValue added tax on sales received and refunds of value03)added tax paid04)Refund of other taxes and levy other than value added tax07)Other cash received relating to operating activities08)Sub-total of cash inflows09)Cash paid for goods and services10)Cash paid for operating leases11)Cash paid to and on behalf of employees12)Value added tax on purchases paid13)Income tax paid14)Taxes paid other than value added tax and income tax17)Other cash paid relating to operating activities18)Sub-total of cash outflows19)Net cash flows from operating activities2.Cash Flows from Investing Activities:20)Cash received from return of investments21)Cash received from distribution of dividends or profits22)Cash received from bond interest incomeNet cash received from disposal of fixed assets,intangible 23)assets and other long-term assets26)Other cash received relating to investing activities27)Sub-total of cash inflowsCash paid to acquire fixed assets,intangible assets28)and other long-term assets29)Cash paid to acquire equity investments30)Cash paid to acquire debt investments33)Other cash paid relating to investing activities34)Sub-total of cash outflows35)Net cash flows from investing activities3.Cash Flows from Financing Activities:36)Proceeds from issuing shares37)Proceeds from issuing bonds38)Proceeds from borrowings41)Other proceeds relating to financing activities42)Sub-total of cash inflows43)Cash repayments of amounts borrowed44)Cash payments of expenses on any financing activities45)Cash payments for distribution of dividends or profits46)Cash payments of interest expenses47)Cash payments for finance leases48)Cash payments for reduction of registered capital51)Other cash payments relating to financing activities52)Sub-total of cash outflows53)Net cash flows from financing activities4.Effect of Foreign Exchange Rate Changes on Cash Increase in Cash and Cash EquivalentsSupplemental Information1.Investing and Financing Activities that do not Involve in Cash Receipts and Payments56)Repayment of debts by the transfer of fixed assets57)Repayment of debts by the transfer of investments58)Investments in the form of fixed assets59)Repayments of debts by the transfer of investories2.Reconciliation of Net Profit to Cash Flows from Operating Activities62)Net profit63)Add provision for bad debt or bad debt written off64)Depreciation of fixed assets65)Amortization of intangible assetsLosses on disposal of fixed assets,intangible assets66)and other long-term assets (or deduct:gains)67)Losses on scrapping of fixed assets68)Financial expenses69)Losses arising from investments (or deduct:gains)70)Defered tax credit (or deduct:debit)71)Decrease in inventories (or deduct：increase)72)Decrease in operating receivables (or deduct:increase)73)Increase in operating payables (or deduct:decrease)74)Net payment on value added tax (or deduct:net receipts75)Net cash flows from operating activities Increase in Cash and Cash Equivalents76)cash at the end of the period77)Less:cash at the beginning of the period78)Plus:cash equivalents at the end of the period79)Less:cash equivalents at the beginning of the period80)Net increase in cash and cash equivalents现金流量表Cash Flows StatementPrepared by: Period: Unit:Items1.Cash Flows from Operating Activities:01)Cash received from sales of goods or rendering of services02)Rental receivedValue added tax on sales received and refunds of value03)added tax paid04)Refund of other taxes and levy other than value added tax07)Other cash received relating to operating activities08)Sub-total of cash inflows09)Cash paid for goods and services10)Cash paid for operating leases11)Cash paid to and on behalf of employees12)Value added tax on purchases paid13)Income tax paid14)Taxes paid other than value added tax and income tax17)Other cash paid relating to operating activities18)Sub-total of cash outflows19)Net cash flows from operating activities2.Cash Flows from Investing Activities:20)Cash received from return of investments21)Cash received from distribution of dividends or profits22)Cash received from bond interest incomeNet cash received from disposal of fixed assets,intangible 23)assets and other long-term assets26)Other cash received relating to investing activities27)Sub-total of cash inflowsCash paid to acquire fixed assets,intangible assets28)and other long-term assets29)Cash paid to acquire equity investments30)Cash paid to acquire debt investments33)Other cash paid relating to investing activities34)Sub-total of cash outflows35)Net cash flows from investing activities3.Cash Flows from Financing Activities:36)Proceeds from issuing shares37)Proceeds from issuing bonds38)Proceeds from borrowings41)Other proceeds relating to financing activities42)Sub-total of cash inflows43)Cash repayments of amounts borrowed44)Cash payments of expenses on any financing activities45)Cash payments for distribution of dividends or profits46)Cash payments of interest expenses47)Cash payments for finance leases48)Cash payments for reduction of registered capital51)Other cash payments relating to financing activities52)Sub-total of cash outflows53)Net cash flows from financing activities4.Effect of Foreign Exchange Rate Changes on Cash Increase in Cash and Cash EquivalentsSupplemental Information1.Investing and Financing Activities that do not Involve in Cash Receipts and Payments56)Repayment of debts by the transfer of fixed assets57)Repayment of debts by the transfer of investments58)Investments in the form of fixed assets59)Repayments of debts by the transfer of investories2.Reconciliation of Net Profit to Cash Flows from Operating Activities62)Net profit63)Add provision for bad debt or bad debt written off64)Depreciation of fixed assets65)Amortization of intangible assetsLosses on disposal of fixed assets,intangible assets66)and other long-term assets (or deduct:gains)67)Losses on scrapping of fixed assets68)Financial expenses69)Losses arising from investments (or deduct:gains)70)Defered tax credit (or deduct:debit)71)Decrease in inventories (or deduct：increase)72)Decrease in operating receivables (or deduct:increase)73)Increase in operating payables (or deduct:decrease)74)Net payment on value added tax (or deduct:net receipts75)Net cash flows from operating activities Increase in Cash and Cash Equivalents76)cash at the end of the period77)Less:cash at the beginning of the period78)Plus:cash equivalents at the end of the period79)Less:cash equivalents at the beginning of the period80)Net increase in cash and cash equivalents现金流量表的现金流量声明拟制人：时间：单位：项目1.cash流量从经营活动：01 ）所收到的现金从销售货物或提供劳务02 ）收到的租金增值税销售额收到退款的价值03 ）增值税缴纳04 ）退回的其他税收和征费以外的增值税07 ）其他现金收到有关经营活动08 ）分，总现金流入量09 ）用现金支付的商品和服务10 ）用现金支付经营租赁11 ）用现金支付，并代表员工12 ）增值税购货支付13 ）所得税的缴纳14 ）支付的税款以外的增值税和所得税17 ）其他现金支付有关的经营活动18 ）分，总的现金流出19 ）净经营活动的现金流量2.cash流向与投资活动：20 ）所收到的现金收回投资21 ）所收到的现金从分配股利，利润22 ）所收到的现金从国债利息收入现金净额收到的处置固定资产，无形资产23 ）资产和其他长期资产26 ）其他收到的现金与投资活动27 ）小计的现金流入量用现金支付购建固定资产，无形资产28 ）和其他长期资产29 ）用现金支付，以获取股权投资30 ）用现金支付收购债权投资33 ）其他现金支付的有关投资活动34 ）分，总的现金流出35 ）的净现金流量，投资活动产生3.cash流量筹资活动：36 ）的收益，从发行股票37 ）的收益，由发行债券38 ）的收益，由借款41 ）其他收益有关的融资活动42 ），小计的现金流入量43 ）的现金偿还债务所支付的44 ）现金支付的费用，对任何融资活动45 ）支付现金，分配股利或利润46 ）以现金支付的利息费用47 ）以现金支付，融资租赁48 ）以现金支付，减少注册资本51 ）其他现金收支有关的融资活动52 ）分，总的现金流出53 ）的净现金流量从融资活动4.effect的外汇汇率变动对现金增加现金和现金等价物补充资料1.investing活动和筹资活动，不参与现金收款和付款56 ）偿还债务的转让固定资产57 ）偿还债务的转移投资58 ）投资在形成固定资产59 ）偿还债务的转移库存量2.reconciliation净利润现金流量从经营活动62 ）净利润63 ）补充规定的坏帐或不良债务注销64 ）固定资产折旧65 ）无形资产摊销损失处置固定资产，无形资产66 ）和其他长期资产（或减：收益）67 ）损失固定资产报废68 ）财务费用69 ）引起的损失由投资管理（或减：收益）70 ） defered税收抵免（或减：借记卡）71 ）减少存货（或减：增加）72 ）减少经营性应收（或减：增加）73 ）增加的经营应付账款（或减：减少）74 ）净支付的增值税（或减：收益净额75 ）净经营活动的现金流量增加现金和现金等价物76 ）的现金，在此期限结束77 ）减：现金期开始78 ）加：现金等价物在此期限结束79 ）减：现金等价物期开始80 ），净增加现金和现金等价物。
财务报表分析英文课件 (一)Financial statement analysis is an essential tool for identifying the financial health of an organization, developing and evaluating strategies, and making investment decisions. The use of financial statements enables managers, investors, and other stakeholders to determine the financial performance, financial position, and cash flow of an organization. In this article, we will provide a comprehensive guide to financial statement analysis using an English PowerPoint presentation.1. Introduction to Financial Statement Analysis: The first slide or section should cover the essential concepts in financial statement analysis, such as what financial statements are, their purposes, and the tools and techniques used to analyze them. This section should also introduce the three primary financial statements; the income statement, the balance sheet, and the cash flow statement, and their respective formats.2. Analyzing the Income Statement: This section should cover the income statement's key elements, such as revenue, cost of goods sold, gross profit, operating expenses, and net income. The slide should highlight the different financial ratiosthat can be computed from these elements, such as the profit margin, gross margin, and EBITDA. The presentation should also include performance metrics like return on investment (ROI) or return on equity (ROE).3. Analyzing the Balance Sheet: This slide should introducethe balance sheet's structure and the key elements that makeup the balance sheet, such as assets, liabilities, and equity. This section should highlight the financial ratios that canbe computed from the balance sheet such as debt-to-equity ratio, current ratio, and quick ratio. This slide should also cover important financial metrics such as days sales outstanding, inventory turnover, and accounts payable turnover.4. Analyzing the Cash Flow Statement: This section shouldcover the cash flow statement's structure and the keyelements that make up the cash flow statement, such as operating cash flow, investing cash flow, and financing cash flow. The slide should highlight the financial ratios thatcan be computed from the cash flow statement, such as thecash conversion cycle and cash ratio. This slide should also cover important financial metrics such as free cash flow and capital expenditures.5. Interpreting Financial Statement Analysis Results: This section should cover how to interpret the findings in the analysis. The slide must cover how to interpret financialratios and how they relate to the organization's financial performance, including limitations and assumptions. This section should also cover how to use financial statement analysis to compare different organizations' financial performance and identify key trends.6. Conclusion: The presentation should conclude bysummarizing the key points and discussing the importance of financial statement analysis for investors, managers, and other decision-makers.In conclusion, financial statement analysis is an essential tool for evaluating an organization's financial status, helping to make decisions, and formulate strategies. The use of financial ratios and metrics enable decision-makers to analyze the financial performance, position, and cash flow of an organization. Whether you are an investor, executive, or decision-maker, financial statement analysis can provide insight into the organization's operations and guide your future decisions.。
资料范本本资料为word版本，可以直接编辑和打印，感谢您的下载财务报表(中英文版)地点：__________________时间：__________________说明：本资料适用于约定双方经过谈判，协商而共同承认，共同遵守的责任与义务，仅供参考，文档可直接下载或修改，不需要的部分可直接删除，使用时请详细阅读内容标准版的财务报表（中英文版）资产负债表 Balance Sheet项目 ITEM货币资金 Cash短期投资 Short term investments应收票据 Notes receivable应收股利 Dividend receivable应收利息 Interest receivable应收帐款 Accounts receivable其他应收款 Other receivables预付帐款 Accounts prepaid期货保证金 Future guarantee应收补贴款 Allowance receivable应收出口退税 Export drawback receivable存货 Inventories其中：原材料 Including:Raw materials产成品(库存商品) Finished goods待摊费用 Prepaid and deferred expenses待处理流动资产净损失 Unsettled G/L on current assets一年内到期的长期债权投资 Long-term debenture investment falling due in a yaear其他流动资产 Other current assets流动资产合计 Total current assets长期投资： Long-term investment：其中:长期股权投资 Including long term equity investment长期债权投资 Long term securities investment*合并价差 Incorporating price difference长期投资合计 Total long-term investment固定资产原价 Fixed assets-cost减：累计折旧 Less:Accumulated Dpreciation固定资产净值 Fixed assets-net value减：固定资产减值准备 Less:Impairment of fixed assets固定资产净额 Net value of fixed assets固定资产清理 Disposal of fixed assets工程物资 Project material在建工程 Construction in Progress待处理固定资产净损失 Unsettled G/L on fixed assets固定资产合计 Total tangible assets无形资产 Intangible assets其中:土地使用权 Including and use rights递延资产（长期待摊费用）Deferred assets其中:固定资产修理 Including:Fixed assets repair固定资产改良支出 Improvement expenditure of fixed assets其他长期资产 Other long term assets其中:特准储备物资 Among it:Specially approved reserving materials 无形及其他资产合计 Total intangible assets and other assets递延税款借项 Deferred assets debits资产总计 Total Assets资产负债表(续表) Balance Sheet项目 ITEM短期借款 Short-term loans应付票款 Notes payable应付帐款 Accounts payab1e预收帐款 Advances from customers应付工资 Accrued payro1l应付福利费 Welfare payable应付利润(股利) Profits payab1e应交税金 Taxes payable其他应交款 Other payable to government其他应付款 Other creditors预提费用 Provision for expenses预计负债 Accrued liabilities一年内到期的长期负债 Long term liabilities due within one year 其他流动负债 Other current liabilities流动负债合计 Total current liabilities长期借款 Long-term loans payable应付债券 Bonds payable长期应付款 long-term accounts payable专项应付款 Special accounts payable其他长期负债 Other long-term liabilities其中:特准储备资金 Including:Special reserve fund长期负债合计 Total long term liabilities递延税款贷项 Deferred taxation credit负债合计 Total liabilities* 少数股东权益 Minority interests实收资本(股本) Subscribed Capital国家资本 National capital集体资本 Collective capital法人资本 Legal person"s capital其中:国有法人资本 Including:State-owned legal person"s capital 集体法人资本 Collective legal person"s capital个人资本 Personal capital外商资本 Foreign businessmen"s capital资本公积 Capital surplus盈余公积 surplus reserve其中:法定盈余公积 Including:statutory surplus reserve公益金 public welfare fund补充流动资本 Supplermentary current capital* 未确认的投资损失（以“-”号填列） Unaffirmed investment loss 未分配利润 Retained earnings外币报表折算差额 Converted difference in Foreign Currency Statements所有者权益合计 Total shareholder"s equity负债及所有者权益总计 Total Liabilities & Equity================================================================= ===利润表 INCOME STATEMENT项目 ITEMS产品销售收入Sales of products其中：出口产品销售收入 Including：Export sales减：销售折扣与折让 Less：Sales discount and allowances产品销售净额Net sales of products减：产品销售税金Less：Sales tax产品销售成本 Cost of sales其中：出口产品销售成本Including：Cost of export sales产品销售毛利 Gross profit on sales减：销售费用 Less：Selling expenses管理费用General and administrative expenses财务费用Financial expenses其中：利息支出(减利息收入) Including：Interest expenses (minusinterest ihcome)汇兑损失(减汇兑收益) Exchange losses(minus exchange gains) 产品销售利润Profit on sales加：其他业务利润Add：profit from other operations营业利润Operating profit加：投资收益Add：Income on investment加：营业外收入Add：Non-operating income减：营业外支出Less：Non-operating expenses加：以前年度损益调整Add：adjustment of loss and gain for previous years利润总额 Total profit减：所得税 Less：Income tax净利润 Net profit================================================================= =现金流量表Cash Flows StatementPrepared by: Period: Unit:Items1.Cash Flows from Operating Activities:01)Cash received from sales of goods or rendering of services02)Rental receivedValue added tax on sales received and refunds of value03)added tax paid04)Refund of other taxes and levy other than value added tax07)Other cash received relating to operating activities08)Sub-total of cash inflows09)Cash paid for goods and services10)Cash paid for operating leases11)Cash paid to and on behalf of employees12)Value added tax on purchases paid13)Income tax paid14)Taxes paid other than value added tax and income tax17)Other cash paid relating to operating activities18)Sub-total of cash outflows19)Net cash flows from operating activities2.Cash Flows from Investing Activities:20)Cash received from return of investments21)Cash received from distribution of dividends or profits22)Cash received from bond interest incomeNet cash received from disposal of fixed assets,intangible 23)assets and other long-term assets26)Other cash received relating to investing activities27)Sub-total of cash inflowsCash paid to acquire fixed assets,intangible assets28)and other long-term assets29)Cash paid to acquire equity investments30)Cash paid to acquire debt investments33)Other cash paid relating to investing activities34)Sub-total of cash outflows35)Net cash flows from investing activities3.Cash Flows from Financing Activities:36)Proceeds from issuing shares37)Proceeds from issuing bonds38)Proceeds from borrowings41)Other proceeds relating to financing activities42)Sub-total of cash inflows43)Cash repayments of amounts borrowed44)Cash payments of expenses on any financing activities45)Cash payments for distribution of dividends or profits46)Cash payments of interest expenses47)Cash payments for finance leases48)Cash payments for reduction of registered capital51)Other cash payments relating to financing activities52)Sub-total of cash outflows53)Net cash flows from financing activities4.Effect of Foreign Exchange Rate Changes on Cash Increase in Cash and Cash EquivalentsSupplemental Information1.Investing and Financing Activities that do not Involve in Cash Receipts and Payments56)Repayment of debts by the transfer of fixed assets57)Repayment of debts by the transfer of investments58)Investments in the form of fixed assets59)Repayments of debts by the transfer of investories2.Reconciliation of Net Profit to Cash Flows from Operating Activities62)Net profit63)Add provision for bad debt or bad debt written off64)Depreciation of fixed assets65)Amortization of intangible assetsLosses on disposal of fixed assets,intangible assets66)and other long-term assets (or deduct:gains)67)Losses on scrapping of fixed assets68)Financial expenses69)Losses arising from investments (or deduct:gains)70)Defered tax credit (or deduct:debit)71)Decrease in inventories (or deduct：increase)72)Decrease in operating receivables (or deduct:increase)73)Increase in operating payables (or deduct:decrease)74)Net payment on value added tax (or deduct:net receipts75)Net cash flows from operating activities Increase in Cash and Cash Equivalents76)cash at the end of the period77)Less:cash at the beginning of the period78)Plus:cash equivalents at the end of the period79)Less:cash equivalents at the beginning of the period80)Net increase in cash and cash equivalents现金流量表Cash Flows StatementPrepared by: Period: Unit:Items1.Cash Flows from Operating Activities:01)Cash received from sales of goods or rendering of services02)Rental receivedValue added tax on sales received and refunds of value03)added tax paid04)Refund of other taxes and levy other than value added tax07)Other cash received relating to operating activities08)Sub-total of cash inflows09)Cash paid for goods and services10)Cash paid for operating leases11)Cash paid to and on behalf of employees12)Value added tax on purchases paid13)Income tax paid14)Taxes paid other than value added tax and income tax17)Other cash paid relating to operating activities18)Sub-total of cash outflows19)Net cash flows from operating activities2.Cash Flows from Investing Activities:20)Cash received from return of investments21)Cash received from distribution of dividends or profits22)Cash received from bond interest incomeNet cash received from disposal of fixed assets,intangible 23)assets and other long-term assets26)Other cash received relating to investing activities27)Sub-total of cash inflowsCash paid to acquire fixed assets,intangible assets28)and other long-term assets29)Cash paid to acquire equity investments30)Cash paid to acquire debt investments33)Other cash paid relating to investing activities34)Sub-total of cash outflows35)Net cash flows from investing activities3.Cash Flows from Financing Activities:36)Proceeds from issuing shares37)Proceeds from issuing bonds38)Proceeds from borrowings41)Other proceeds relating to financing activities42)Sub-total of cash inflows43)Cash repayments of amounts borrowed44)Cash payments of expenses on any financing activities45)Cash payments for distribution of dividends or profits46)Cash payments of interest expenses47)Cash payments for finance leases48)Cash payments for reduction of registered capital51)Other cash payments relating to financing activities52)Sub-total of cash outflows53)Net cash flows from financing activities4.Effect of Foreign Exchange Rate Changes on Cash Increase in Cash and Cash EquivalentsSupplemental Information1.Investing and Financing Activities that do not Involve in Cash Receipts and Payments56)Repayment of debts by the transfer of fixed assets57)Repayment of debts by the transfer of investments58)Investments in the form of fixed assets59)Repayments of debts by the transfer of investories2.Reconciliation of Net Profit to Cash Flows from Operating Activities62)Net profit63)Add provision for bad debt or bad debt written off64)Depreciation of fixed assets65)Amortization of intangible assetsLosses on disposal of fixed assets,intangible assets66)and other long-term assets (or deduct:gains)67)Losses on scrapping of fixed assets68)Financial expenses69)Losses arising from investments (or deduct:gains)70)Defered tax credit (or deduct:debit)71)Decrease in inventories (or deduct：increase)72)Decrease in operating receivables (or deduct:increase)73)Increase in operating payables (or deduct:decrease)74)Net payment on value added tax (or deduct:net receipts75)Net cash flows from operating activities Increase in Cash and Cash Equivalents76)cash at the end of the period77)Less:cash at the beginning of the period78)Plus:cash equivalents at the end of the period79)Less:cash equivalents at the beginning of the period80)Net increase in cash and cash equivalents现金流量表的现金流量声明拟制人：时间：单位：项目1.cash流量从经营活动：01 ）所收到的现金从销售货物或提供劳务02 ）收到的租金增值税销售额收到退款的价值03 ）增值税缴纳04 ）退回的其他税收和征费以外的增值税07 ）其他现金收到有关经营活动08 ）分，总现金流入量09 ）用现金支付的商品和服务10 ）用现金支付经营租赁11 ）用现金支付，并代表员工12 ）增值税购货支付13 ）所得税的缴纳14 ）支付的税款以外的增值税和所得税17 ）其他现金支付有关的经营活动18 ）分，总的现金流出19 ）净经营活动的现金流量2.cash流向与投资活动：20 ）所收到的现金收回投资21 ）所收到的现金从分配股利，利润22 ）所收到的现金从国债利息收入现金净额收到的处置固定资产，无形资产23 ）资产和其他长期资产26 ）其他收到的现金与投资活动27 ）小计的现金流入量用现金支付购建固定资产，无形资产28 ）和其他长期资产29 ）用现金支付，以获取股权投资30 ）用现金支付收购债权投资33 ）其他现金支付的有关投资活动34 ）分，总的现金流出35 ）的净现金流量，投资活动产生3.cash流量筹资活动：36 ）的收益，从发行股票37 ）的收益，由发行债券38 ）的收益，由借款41 ）其他收益有关的融资活动42 ），小计的现金流入量43 ）的现金偿还债务所支付的44 ）现金支付的费用，对任何融资活动45 ）支付现金，分配股利或利润46 ）以现金支付的利息费用47 ）以现金支付，融资租赁48 ）以现金支付，减少注册资本51 ）其他现金收支有关的融资活动52 ）分，总的现金流出53 ）的净现金流量从融资活动4.effect的外汇汇率变动对现金增加现金和现金等价物补充资料1.investing活动和筹资活动，不参与现金收款和付款56 ）偿还债务的转让固定资产57 ）偿还债务的转移投资58 ）投资在形成固定资产59 ）偿还债务的转移库存量2.reconciliation净利润现金流量从经营活动62 ）净利润63 ）补充规定的坏帐或不良债务注销64 ）固定资产折旧65 ）无形资产摊销损失处置固定资产，无形资产66 ）和其他长期资产（或减：收益）67 ）损失固定资产报废68 ）财务费用69 ）引起的损失由投资管理（或减：收益）70 ） defered税收抵免（或减：借记卡）71 ）减少存货（或减：增加）72 ）减少经营性应收（或减：增加）73 ）增加的经营应付账款（或减：减少）74 ）净支付的增值税（或减：收益净额75 ）净经营活动的现金流量增加现金和现金等价物76 ）的现金，在此期限结束77 ）减：现金期开始78 ）加：现金等价物在此期限结束79 ）减：现金等价物期开始80 ），净增加现金和现金等价物。
XX Co., Ltd.Annual Audit Report YZXXZ (2016) No. 2XX56XX Certified Public Accountants Co., Ltd.ContentI. Audit report Page 1-2II. Financial statements Page 3-6 (i) Balance Sheet Page 3 (ii) Income Statement Page 4 (iii) Cash Flow Statement Page 5 (iv) Change Statement of Owners’ Equity Page 6III. Explanatory notes of financial statements Page 7-23XX CERTIFIED PUBLIC ACCOUNTANTS CO., LTDAudit ReportYZXXZ (2016) No. 2XX56XX Co., Ltd.,We have audited the accompanying financial statements of XX Co., Ltd. (hereinafter referred to as “your company”), including the balance sheet as at December 31, 2015, the income statement, cash flow statement and cha nge statement of owners’ equity of 2015 as well as explanatory notes of financial statements.I. Management’s responsibility for the financial statementsManagement of your company is responsible for the preparation and fair presentation of financial statements. This responsibility includes: (1) preparing the financial statements and reflecting fair representation in accordance with provisions of the Accounting Standards for Business Enterprises; (2) designing, implementing and maintaining the necessary internal control in order to free financial statements from material misstatement, whether due to fraud or error.II. Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with provisions of the Chinese Certified Public Accountants Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether d ue to fraud or error. In making those riskassessments, the certified public accountants consider the internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that area appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Audit opinionIn our opinion, the financial statements of your company have been prepared in accordance with provisions of the Accounting Standards for Business Enterprises in all material aspects, and present fairly the financial position of your company as of December 31, 2015 and the results of its operations and cash flows of 2015.XX Certified Public Accountants Co., Ltd. Chinese Certified Public A ccountant:Guangdong, China Chinese Certified Public A ccountant:February 29, 2016Balance SheetDecember 31, 2015KQ 011 yearOther current assetsTotal current assetsNon-current assets: Available for sale financial assetsHeld-to-maturity investments Long-term account receivable Long-term equity investment Investing real estateFixed assetProject in construction Engineering material Fixed asset disposal 7available liabilities for saleNon-current liabilities duewithin 1 yearOther current liabilitiesTotal current liabilitiesNon-current liabilities:Long-term borrowingsBonds payableIncluding: Preferred sharesPerpetual capital securitiesLong-term account payableLong-term employees’compensation payableSpecial payablesAccrued liabilitiesDeferred incomeDeferred tax liabilitiesOther non-current liabilitiesTotal non-current liabilitiesTotal liabilitiesOwners’ equity (orshareholders’ equity)Paid-in capital (or sharecapital)Other equity instruments16Income StatementYear of 2015KQ 024Cash Flow StatementYear of 2015KQ 035。
Kater Inc.Transparent Financial Reporting Analysis ManualSEC / Legal EntitySEC / Legal Entity / GAAP Business Units AccountableEnterprise Product ProfitabilityFocusContentsChapter 1 Introduction ............................................................................................1. Kater Methodologies .........................................................................................2. Aggregation Methodologies...............................................................................3. Rate/Volume Concept .......................................................................................4. Commentary .....................................................................................................5. Roles & Responsibilities....................................................................................Chapter 2 Form M Summary ....................................................................................Chapter 3 Foreign Currency Reconciliation ..........................................................Chapter 4 Sales Reconciliation ...............................................................................1. Overview2. Price Realization ...............................................................................................a. Foreign Currencyb. Published Price ......................................................................................c. Sales Discount .......................................................................................d. Warrantye. Transfer Yield .........................................................................................f. Physical Sales Volume...........................................................................3. Base Period Variable Margin Percentage .........................................................4. Volume Impact on Margin .................................................................................Chapter 5 Mix ............................................................................................................1. Overview2. Geographic Mix.................................................................................................3. Country/Region Mix ..........................................................................................................4. Geographic Mix on Transfers ............................................................................5. Product Mix Impact on Sales6. Product Mix between Product Lines..................................................................7. Product Mix within Product Lines ......................................................................a. Revenue Salesb. Non-revenue Sales and TransfersChapter 6 Variable Cost ...........................................................................................1. Overview .....................................................................................................2. Cost of Sales.....................................................................................................3. Transfer In/Inter-company Purchases...............................................................4. Inventory Adjustments / RSSM’s.......................................................................5. Other Variable Cost...........................................................................................Chapter 7 Period Cost of Sales ...............................................................................1. Overview .....................................................................................................2. Period Costs Incurred .......................................................................................3. Period Costs Inventory Effect............................................................................4. Variable Margin Percentage..............................................................................Chapter 8 Parts ..................................................................................................... Chapter 9 Period SG&A / R&D .............................................................................. Chapter 10 Other Income and Expense ................................................................. Chapter 11 The Chunk Chart................................................................................... Chapter 12 Contact Details ..................................................................................... Chapter 13 Glossary (Analysis) .............................................................................. Chapter 14 Glossary (TFR)......................................................................................2In order to fully leverage the benefits of Transparent Financial Reporting, a comprehensive process for financial analysis was developed. The principles of this new process are: ?One tool for all analysis needs –All business unit, product line and consolidated analysis will be performed using this process?Highly mechanical –Utilizing pre-populated templates and pre-defined calculations, manual input into the model has been minimized?Mandatory and consistent methodologies –The prescribed methodologies for calculations and aggregation must be followed or the mechanical process will not provide accurate and consistent financial analysisKater utilizes the Form M as the model to explain changes in results between comparison periods. The Form M explains changes in sales and changes in profit. Major drivers of both of these changes are illustrated in the overall structure of the Form M depicted below.Form M StructureChange in Corporate ProfitSales changes Cost changesDue toCurrency impacts Price realization:1) Published price2) Sales discount3) Warranty4) Transfer yield Physical sales volume Due toCurrency impacts Variable costsMixPhysical sales volume Period costsOther income/expenseThe primary focus of financial analysis at Kater is to explain actual results both year over year and vs. plan, as well as RBM (Rolling Business Management) forecasts. Below is a summaryof relevant comparison periods.?YTD vs. YTD?YTD vs. Plan?Month vs. Plan?Qtr vs. Qtr?RBM Analysis (current vs. prior year, current vs. future year, current vs. plan)This is not an all-inclusiv e list of analysis requirements. For instance to prove that current month results do not contain significant errors it is necessary to compare current month to previous month actual results.Transparent Financ i al Reporting Analys i s Manual A.doc,9/8/2006, 11:23 AM 3The final output of the Form M is a graphical depiction of changes in results for both sales and corporate profit. These charts, commonly referred to as chunk charts, are automatically created and are graphical models inherent in the Form M.Sales & Revenues OperatingProfitAccountableProfitCorporateProfitCurrent Period 1,130,675 198,714 196,017 169,842Base Period 1,006,675 174,962 172,512 146,337 Change 124,000 23,752 23,505 23,505 86.60.1(4.3) 3.0(11.3)(49.9)146.318.7(5.0)(12.4)(0.0)The Kater financial analysis process flow is summarized in the following paragraphs and the attached flowchart.Essbase: The backbone of the analysis tool is Essbase. Essbase is a series of data cubes that allow for manipulation of significant amounts of data. Essbase collects data from multiple sources and pre-populates the analysis templates with data necessary to complete the Form M. After the monthly closing process is complete, actual data is loaded from the Accountable Data Cubes within the General Ledger System (GLS). Prior year actual data, business plan and RBM forecast data are loaded via RBM templates. The front end user-interface to Essbase is referred to as “Catalyst”. Catalyst is an Excel add-in that allows users to send and retrieve data to the Essbase data cubes.Business Unit Analysis: This analysis is completed by the relevant Business Manager, utilizing the pre-populated templates and supplemental calculations as required. Business Unit Form M’s are always subdivided by Product Line (effectively all Business Units will have a Form M for each Product Line they support as well as a Consolidated Business Unit Form M). Commentary to support the Business Unit analysis is required as well. Once completed Business Unit analysis is submitted into Essbase to facilitate the creation of Product Line Form M’s.Product Line Analysis: After all Business Unit (as well as by Product Line within Business Unit) analysis is complete, Essbase creates the Product Line Form M’s. The Business Unit that houses the Global Product Manager will provide commentary to support the Product Line analysis. Once completed this analysis is submitted into Essbase to facilitate the creation of the remaining steps of the Product Line Cascade.Product Category and Sub-Line of Business Analysis: After the Product Line analysis is finalized the Product Category and Sub-Line of Business analysis will be mechanically generated.Principal Line of Business: At the Principal Line of Business level several Corporate variances that are not assigned at a lower level are added to the analysis; actual foreign exchange gains/losses, actuarial gains/losses on pension assets and LIFO variances, etc. These variances flow through to Consolidated analysis as well. On a forecast basis these items will be assigned by CAS.Overview of the Transparent Financial Reporting Analysis processActual Data Replicated to EssbaseComparison period data pre-populated (ABP, Prior year actualor RBM)Loaded via RBMtemplateReca l c ul at ionAGGREGATION –Business Unit Form MThe calculations for the Business Unit Form M can be divided into three categories:1. Additive Items;2. Business Unit Calculations; and3. Recalculated Items.Grouping calculations into these three categories facilitates achieving transparency between Business Unit analysis and Product Line analysis. These aggregation methodologies are predefined and cannot be deviated from.Additive Items: These items (see figure below) for the Business Unit Form M are add-ups of Product Line calculations. Calculations will be completed at the Product Line within Business Unit level and added together to arrive at the Business Unit total.Business Unit Calculations: These items (see figure below) for the Business Unit Form M are to be calculated at an overall Business Unit Level. The total Business Unit Form M variance will then be split by the Business Unit between the Product Lines within the Business Unit.Recalculated Items: The sum of total margin impact of physical sales volume and mix for total Business Unit and total Product Lines within a Business Unit are equal. However, as you aggregate from Product Lines within a Business Unit to total Business Unit, volume and mix must be recalculated. The form M calculates volume and mix by Product Line within Business Unit. It then recalculates volume at a Business Unit level. The difference between the additive volumes of the Product Line calculations and the Business Unit calculation is defined as mix between Product LinesBusiness Unit Form M (e.g. TTT)Additive ItemsBU Calcs.Reca l c ul at ionProduct Line Form M w/in Business Unit (e.g. Pipelayer w/in TTT)Product Line Form M w/in Business Unit (e.g. MTT w/in TTT) Product Line Form M w/in Business Unit (e.g. LTT w/in TTT)Product Line Form M (e.g. LTT) Pro Transfer Yield ct on SalesAGGREGATION –Product Line Form MThe calculations for the Product Line Form M are fully mechanical, based on Business Unit inputs, and they can be divided into two categories: Additive Items and Product Line Calculations. Grouping calculations into these two categories facilitates achieving transparency between Business Unit analysis and Product Line analysis.Additive Items: These items (see Figure below) for the Product Line Form M are considered to be add-ups of the Product Line pieces calculated in the Business Unit Form M process. Each Product Line is fed Form M data via Essbase from one or more Business Units. The variances in the list below for the Product Line Form M are a summation of the variances fed from the Business Unit Form Ms.Product Line Calculations: Volume, Geographic Mix, and Mix will be completed at an overall Product Line level. All Product Line calculations are performed mechanically within the Form M.Product Line Form M (e.g. LTT) Price Realization PublishedPrice Change Sales Variance Rate Change Product Mix Impact on SalesGeographic Mix Country/Region MixVolumeMixGeographic MixPu M bl i i x sh b P e y d r M i c P e o r d i R c e e e l a C li h z an ti g on e Sales P V W u a b r a i l a r i s r n a h c n e e t d y R P a r t ic e e C C h h a a n n g g e e S P a e le r s io V d a C ri o a s n t c s e Rate Change MixGeographic Mix VolumeFor purposes of variable margin analysis the Form M separates total sales and marginbetween rate and physical sales volume.The illustration below using sample data highlights the rate/volume concept.Illustration: Rate/Volume ConceptNet sales & transfers - base 1,000Net sales & transfers - current1,200Total net sales & transfers change 200less:Currency movements(20)Published price changes50Sales discount changes 10 Price RealizationW arranty 30Physical sales volume change 130Rate of growth of physical sales volume 13%Margin changeBase Period Current PeriodP&L P&L ChangeNet sales & transfers 1,000 1,200 200Actual variable costs(700)(850)(150)assumed to be neutral for ease of illustration.The example above shows how a change in margin can be separated between rate and physical sales volume. The total change in margin is $50 (favorable) resulting from a $200 favorable change in sales and a $150 increase in associated costs.At the sales level, the change in physical sales volume is $130 (favorable). The remainder is due to currency, published price, sales discounts and warranty. The Sales Recon chapter contains further details on this area.On costs, the variance resulting from the increase in physical sales volume is a $91 increase in costs and the rate variance is $59 (unfavorable). See the Variable Cost chapter for more details.The Form M provides significant information on period-to-period change but does not provide the complete story. Critical to supporting the Form M is the business commentary provided by Business Units for both Business Unit and Product Line results. This commentary provides the root causes or business reasons which drive the Form M variances. The commentary should provide insight that is not evident through the numbers. Business Unit commentary will be utilized by Corporate Accounting (CAS) as the basis for results explanations that will be provided to the Administrative Council, Executive Office and the Board of Directors as well as for our external results communications.Example 1:Insufficient:"SG&A decreased by $1 million"Sufficient:"SG&A labor cost decreased $4 million due to 6 Sigma-driven headcount reduction of 40 heads in process X. This was partially offset by increased local PINS ICP metric of $2,000 (base period factor of 0.9 v. current period factor of 1.0) and increased spending of $1,000 on consulting related to Project Y."Example 2:Insufficient:"Sales discounts increased by 2%"Sufficient:"Market price actions from competitor X were resulting in significant PINS losses. Sales program A was launched on April 1, 200X to regain lost PINS; this program will expire on June 30, 200X and we will reassess the situation at that time."The Form M is the mechanism for Business Units to provide commentary for both Business Unit and Product Line results.In order to enable this highly mechanized, disciplined approach to financial analysis, there are clearly defined roles and responsibilities.Business Unit Analysis: Business Managers are accountable for performing Business Unit analysis and providing commentary using the methodology described in this manual. As the entire process (Business Unit through Consolidated Results Analysis) is highly dependent on many different actions, Business Managers are also responsible to ensure all due dates are met.Product Line Analysis: A lthough Product Line Form Ms are completed mechanically, commentary to support the analysis will be required. Business Managers that support a Global Product Manager are responsible for completing this commentary and meeting all necessary due dates.Inter-company transactions: A necessary step in consistent, mechanical analysis is to ensure all transfer yield and transfer cost variances balance. In order for this to occur, it is necessary for one side of each transaction to have accountability for input into the Form M. Component Product Lines are responsible for populating the Transfer Price Indices for all of their respective transfers. Marketing Business Units are responsible for populating the Transfer Price Indices for all of their respective inter-company purchases.Price Realization 20,865 Transfer Yield 130 W a rranty(4,325) Currency4,950 Parts Transfers (McFee) 5,000 Physical Sales Volume Change$97,380The next three pages contain a moredetailed view of the Form M with summary level definitions of each major line item.The section on this page explains the sales & transfers impact.NOTESSALES & TRANSFERS IMPACTSales & Transfers Net Sales & Transfers Change: the total change in sales, represented by thedifference between current period sales and Current Period Sales base period sales. See Ch 4.Base Period SalesChange Price Realization: includes the impact of (currency neutral). See Ch 4, Section 2. Transfer Yield: the impact from changes to the internal transfer prices (currencyneutral). See Ch 4, Section 2.e.Warranty: the impact from changes in warranty costs (currency neutral). See Ch 4, Section 2.d.Currency: the net impact on the current sales value from currency movements. See Ch 4, Section 2.a.Parts Transfer (McFee): the differential between base and current P&L values. See Ch 9.Physical Sales Volume Change:represents the currency neutralized change in sales with the impact from published price, sales discount rate, transfer yield, warranty and parts transfers to MPCs removed. See Ch 4, Section 2.f.Transfer Yield130country/region, geographic and product mix Warranty - Policy (575) (currency neutral). See Ch 4, Section 2. The section on this page explains the Business Unit view of corporate profit impact.CORPORA TE PROFIT IMPA CTCurrent Period C orporate Prof i t / (Loss)Tota l Corporate Profit / (Loss)NOTESCorporate Profit Change: the difference in corporate profit between the current and base P&L values (currency neutral).Base Period Corporate Profit / (Loss)See Ch 4.ChangeVo l ume /Pr i ce /M i x:Sales & Transfers Volume: the variable margin impact explained by the change in physical sales volume (currency neutral). See Ch 4, Section 4.Sales & Transfers Volume 41,759 Price Realiza t ion 20,865Price Realization: includes the impact of changes in published price, sales discounts,Warranty - S t andard(3,750) M ix - Between Product Lines 5,244 M ix - Within Product Lines (by model) (6,200)Manufacturing Cost:Variable CostMaterial (External Suppliers Only)(4,074) Transfers in / Intercompany Purchases Cost Variance (2,992) Variable Labor / Burden (2,689) Inv. Adj.'s / RSSMs - Other Variable Cost127 Manufacturing Period Cost of SalesPeriod Cost I ncurredPeriod Cost inventory effectTransfer Yield: the impact from changes to the internal transfer prices (currency neutral). See Ch 4, Section 2.e.Warranty: the impact from changes in warranty costs (currency neutral). See Ch 4, Section 2.d.Mix – Between Product Lines: represents the impact on variable margin (base vs. current period) driven by Product Line weighting of sales and transfers as apercentage of total Business Unit sales and transfers. See Ch 5, Section 7.Mix – Within Product Lines: represents the impact on variable margin (base vs. current period) driven by mo del weighting of sales and transfers as a percentage of total Product Line sales and transfers. See Ch 5, Section 6.Total Manu f ac t uring Cos tTotal Gross Margin C hange (Exc l Fx & Parts) Non-Manufacturing Period Costs$ (22,527) $34,946Variable Costs: represents the impact of changes from period to period in cost rates applied to current period volumes (currency neutral). See Ch 6.Period Cost of Sales: represents change in overhead costs from both the actual costs SG&A R&DTotal Period Cost Change Parts Profit (McFee)2,000 Other Operat i ng (I ncome) / Expense:-incurred and the impact of changes inproduction volume on period costs absorbed into inventory (currency neutral). See Ch 7. SG&A and R&D: represents the differential between base and current P&L values (currency neutral). See Ch 10.Parts Profit (McFee): represents thedifferential between base and current P&L values (currency neutral). See Ch 9. Other Operating (Income)/Expense:represents the differential between base and current P&L values (currency neutral). See Ch 11.This section on this page completes the Form M by explaining changes in non-operating and corporate burden items.Other (Income) / Expense:Interest Expense (210) Net Currency Impact 1,400 Affilitate Income -Other Income/Expense - NOTESInterest Expense: represents the differential between base and current P&L values (currency neutral). See Ch 11.Net Currency Impact: represents the impact of foreign currency on P&L changeChangeCorporate Burden: $ 23,516 and Business Unit hedging. See Ch 11. Affiliate Income: represents the differential between base and current P&L. See Ch 11.Reversal of BU HedgingReversal of Parts Business Plan Profit Equalization Admin & ExemptOther Allocated Operating CostsOther Allocated Income/Expense CostsTotal Corporate Burden Other (Income)/Expense: represents the differential between base and current P&L values (currency neutral). See Ch 11. Corporate Burden: represents the differential between base and current P&L values.Change in Corporate Profit / (Loss):OverviewForeign currency impacts all P&L line items for many business units. For internal reporting to the Executive Office and Board of Directors as well as our external release we remove the foreign currency impacts by line item to achieve currency neutralized changes. This methodology enables focus on the drivers behind price and cost changes excluding foreign currency impacts. Foreign currency impacts are then aggregated and explained as a single net impact.Calculation TheoryThe Form M calculates the foreign currency impact by taking the change in the exchange rate between the current period and the base period for the Business Unit and applying that percentage change to current sales and costs. Current sales and costs must be used, as the currency neutralized current values are used as the starting point in the Sales Reconciliation (reconciles currency neutralized current sales with base sales).The simple example shown below illustrates two methods of calculating the impact of currency movements on the Business Unit’s profitability. These currency impacts are manually inputted into the ‘FX’sheet and calculated outside of the Form M.Illustration: Foreign Currency ImpactGBP Jan'X3Feb'X3Mar'X3Current exchange rate 1.610 1.590 1.612Base exchange rate 1.540 1.540 1.540* GBP has apprecia t ed against U S D[1-(Base exchg. Rate/Currentexchg. rate)] 0.04348 0.03145 0.04451USD TotalSales $40,000 $40,000 $45,000 $125,000[(Current sales/Current exchg.Sales @ base rate rate) x Base exchg. rate] $38,261 $38,742 $42,997Currency impact on sales $1,739 $1,258 $2,003 $5,000 Material purchases ($17,900) ($18,000) ($14,731) ($50,631)[(Current materialpurchases/Current exchg. rate) xPurchases @ base rate Base exchg. rate] ($17,122) ($17,434) ($14,075)Currency impact on purchase ($778) ($566) ($656) ($2,000) AlternativelyCurrency impact on sales[Sales @ current rate x % chg. inexchg. rate] $1,739 $1,258 $2,003 $5,000Currency impact on purchases[Purchases @ current rate x %chg. in exchg. rate] ($778) ($566) ($656) ($2,000)This example shows how the foreign currency impact on sales and purchases are calculated. Given a strengthening trend in British Pounds (the foreign currency), we expect a favorable impact on sales as sales denominated in Pounds are translated into more US dollars (value = $5,000) and an unfavorable impact on material purchases (value = $2,000).To calculate the change, convert current period sales at the base period exchange rate. In Jan’X3, current sales are $40,000. When converted at USD 1.54 to 1 GBP (i.e. the base period exchange rate), current sales in base currency terms, becomes $38,261. The difference of $1,739 [$40,000 - $38,261] represents foreign currency impact on current period sales in Jan’X3.Alternatively, you may multiply current sales in base currency terms, by the rate of change from the base period exchange rate. In Jan’X3, the exchange rate conversion factor is 0.04348. The impact of exchange rate movement on sales is, therefore, $1,739 [0.04348 x $40,000]. Note the results from both methods are the same.When entering the currency impact into the ‘FX’sheet, Business Units need to think of the impact as either favorable or unfavorable to “profits”, and not how the impact is affecting the particular Form M line item. Take the above illustration, for example, the upward movement in British Pounds increases both sales and material purchases. When entering the impacts into the ‘F X’sheet, however, the impact on sales should be entered as a favorable (i.e. positive) impact while the impact on material purchase should be an unfavorable (i.e. negative) impact.ApplicationAll foreign currency movements must be manually entered in the ‘FX’sheet, using the yellow shaded input cells in the sheet. Impacts must be entered for the Business Unit in total, andNet Change - Currency Neutralized ProductLine AProductLine BProductLine CGross Revenue Sales Excluding Parts 125,000 - - - Gross Revenue Sales - Parts - - - - Sales Discounts - (6,625) 3,000 2,000 - Sales Discounts - Revenue Sales - PartsNon-Revenue Sales & Transfers (Before Warranty)Total Sales & TransfersPolicy WarrantyStandard WarrantyTotal WarrantyMaterial (External Suppliers Only)Transfers In / Intercompany PurchasesVariable LaborVariable BurdenInventory Adj/RSSM'sOtherTotal Variable CostPeriod Cost of SalesGross Margin ImpactSG&AR&DOther Operating (Income)/ExpenseNet Currency Impact on Operating ProfitOther Income/ExpenseNet Currency Impact Before HedgingBusiness Unit HedgingNet Currency Impactsum of currency impact across all ProductThe foreign currency impact on Sales Discount –at the Business Unit level. At the Product Line$2,000 for Product Line A and B, respectively. TheSales Discount –Revenue Sales –Excluding($6,625) (vs. ($1,625) before adjustment). The ‘。
