Could anyone help me out with
deciding whether some of my accounts are Operational or Financial? I’m having a
little trouble.
My main issues are with accounts in the
income statement. Would anyone know what ‘Net exchange difference on
translation of financial statements of foreign operations’ would go under?
It just looks like a really long confusing
title to me :/.
Hey,
ReplyDeleteTry looking in your notes section of your annual report that may help. However, I would consider it Financial as it mentions certain terms I would consider to do with the Financials of the business.
I’m also having trouble deciding whether or not to include other income in Operating or Financial?
DeleteThat’s when you need to look it up in your notes. Most of the time it will show you where the ‘other income’ has come from. You then have to determine whether it is all financial or all operational.
ReplyDeleteOne last account I’m having trouble deciding on is ‘Deferred tax liabilities’ I thought that tax was a financial thing but my balance sheet doesn’t seem to be working and I have a feeling its to do with that, but I’m not 100% sure. Do you know what’s wrong?
Deletees, you have it in the wrong one ‘Deferred tax liabilities’ should be in operational. Although tax might seem financial it actually has a lot to do with the day-to-day running of the business which means it should be in operational. hope that helps !
ReplyDeleteHey Dom, yes I agree, I personally also had trouble with deciding whether Deferred tax liabilities was financial or operational. But it is definitely operational :) x
ReplyDelete