Is
the categorization and analysis of assets representative of
the entity's interests and activities (e.g., land, buildings,
equipment, machinery, vehicles)?
(b)
Are
fixed assets under construction shown separately (Does the line
item include the project)?
(c)
Is
there a schedule attached of gross fixed assets, accumulated
depreciation provision and net fixed assets: (i) in operation;
(ii) not in operation; (iii) with data on changes in asset holdings
in year, including (a) sales, (b) revaluations, and basis for
it, and (c) changes in depreciation provision?
(d)
Is
accumulated depreciation shown with depreciation rates and bases
of calculation in supporting schedules?
(e)
Are
disclosures made of assets: (i) leased out, and (ii) pledged?
(f)
In
cases of revaluation of fixed assets and/or restatements of
foreign long-term debt, is sufficient information provided to
reconstruct both sides of the revaluation entries?
(2)
Balance
Sheet - Current Assets
(a)
Is
the total of current assets revealed?
(b)
Is
there an adequate analysis of current assets (e.g., prepaid
expenses, deposits on contracts, receivables, inventories, marketable
securities, short-term bank deposits, cash at bank, and cash
on hand)?
(c)
Are
receivables adequately analyzed, aged and classified between
key classes of debtors?
(d)
Do
marketable securities exclude medium-/long-term investments?
(e)
Is
a bad and doubtful debt allowance indicated (Have actual bad
debts been written off)? For financial institutions, is the
provisioning policy in compliance with prudential guidelines)?
(f)
Is
there a suitable inventory analysis including: (i) manufacturers'
products for sale, (ii) materials and goods for incorporation,
(iii) materials in manufacturing progress, (iii) materials and
goods for maintenance, and (iv) work-in-process? Are the valuation
bases described for each? Are the inventory policies and practices
consistent from year to year?
(3)
Balance
Sheet - Investments and other Assets
(a)
Are
investments detailed in supporting schedules, with bases of
valuation, revaluation, losses and yields?
(b)
Are
deferred charges and pre-operating expenses shown with amortization
rates and accumulated amortization, where appropriate?
(c)
For
Other Assets, are goodwill or intangibles shown, with valuation
bases? (Are "Other assets" substantial, and if so,
is there an analysis in the Notes to the Financial Statements)
(4)
Balance
Sheet - Investments and other Assets
(a)
Is
there an adequate analysis of equity (e.g., authorized capital;
paid-in capital; share premiums; shares outstanding; government
or other public authority contributions; surpluses from appropriated
earnings, unappropriated earnings, and revaluations)?
(b)
Is
there a statement of shareholders equity?
(5)
Balance
Sheet - Long-term Debt
(a)
Are
current maturities excluded and shown under current liabilities?
(b)
Are
all amounts due and payable but not repaid to lenders disclosed?
(c)
Is
there a comprehensive schedule of long-term debt, showing, among
other things, for each outstanding loan: (i) original amount
borrowed; (ii) interest rate, grace and repayment period and
other relevant terms, (e.g., secured debt); (iii) currency in
which debt is repayable and conversion rates, if applicable,
at date of borrowing and current; (iv) gross amount outstanding
and effective currency conversion, if applicable; (v) long-term
debt transactions during year; (vi) current maturities; and
(vii) maturities due and payable, but not paid?
(6)
Balance
Sheet - Current Liabilities
(a)
Is
total of current liabilities shown and suitably analyzed (e.g.,
current maturities of long-term debt, short-term borrowings,
consumer deposits, taxes due, dividends due, accounts payable,
accrued and other liabilities)?
(7)
Balance
Sheet - Other Liabilities
(a)
Are
relevant other liabilities adequately described and analyzed,
including such matters as: pensions and other employee benefits,
and deferred Taxation?
(b)
Are
the analysis of the foregoing and the format of the balance
sheet items in accordance with sound accounting practices?
(c)
Are
contingent liabilities and pledges disclosed?
(d)
Are
reserve funds (e.g., pension funds) adequately classified, explained
and legally utilized and provided for?
(e)
Are
suspense accounts fully explained?
(f)
Is
there an adequate description of verification procedures for
fixed and movable assets and inventories?
(g)
Is
a statement of adequacy of insurance required?
(h)
Is
there an analysis in Notes to the Financial Statements of "Other
Liabilities" where the amount is substantial?
(8)
Income
Statement
(a)
Does
the construction of the revenue, expenditure and other key items
of this statement and supporting data provide satisfactory financial
evidence of the results of activities conducted by the entity?
(b)
Does
the statement provide statistical data on (i) sales or other
performance; (ii) manufacturing costs; (iii) sales costs; (iv)
operating costs; (v) maintenance costs; (vi) administration
costs; (vii) depreciation; (viii) non-operating income (analyzed);
(ix) amortization of deferred charges?
(c)
Are
unusual items clearly shown (e.g., exchange gains or losses;
profit or losses on sale of assets; and profits or losses from
adjustments made to reflect changing prices and/or inflation)?
(d)
Does
the statement include any items relating to other fiscal years
(e.g., prior-year adjustments), and are these separated from
the current year?
(e)
Is
the net income relating to the fiscal year's operations clearly
demonstrated before inclusion of other items, as in (c) and
(d) above?
(f)
Is
the allocation of Net Income clearly demonstrated?
(g)
Does
the opinion cover this statement?
(9)
Cash
Flow Statement
(a)
Does
the statement provide a clear description of operating, investing
and financing cash flows?
(b)
Do
the transactions shown tie back to the Balance Sheet and Income
Statement with the appropriate reconciliations?
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