Nokia is a Finnish multinational communications and information technology company. It founded in 1865. Nokia is a huge multinational company. Here is the balance sheet of this company of year 2014. Various finance and their relevant cost would have control the financial statement of Nokia. Such as ---
- Non-current assets
- Current assets
- Non-current liabilities
- Current liabilities
- Shareholders’ equity and etc.
These various finance and their relevant cost would have controlled by the financial statement of Nokia. Here is some example---
*Non-current assets:-
-Property, plant and equipment-
Property, plant and equipments are the biggest non-current assets of any company. It has a huge effect on the balance sheet. If the amount of property, plant and equipments are huge then the bank will consider the company as their first priority. They will provide loan very easily without any kind of complications. They may provide flexible interest rate of loan and extra time line for payback money for loan. These things help to increase the assets and fewer liabilities of company’s. On other hand share price will get higher. …show more content…
If assets increase, then share price get higher. This is how also increasing the net income and balance sheet is controlled.
-Available for-sale investments-
Available for sale investments carried on balance sheet at their right value and any change in right price between two reporting dates is taken to the shareholders equity as a separate component which is called ‘changes in fair price value of available for sale investments’. If the fair price value of an investment increase, the carrying amount of the investments is debited and changes in fair price value of investments is created. If the fair price value of the investment decrease, the carrying amount of the investments is decreased and the changes in fair price value of investment is debited.
*Current assets:- -Inventories: When inventory investment is reduced on a financial statement, it results lowering the cost of goods sold. In return, the net income before taxes will increase by the same amount of money. Reducing excesses inventories creates more cash that can be used by the company for any other purpose. Reducing too much inventory can result in poor customer relations as lack of availability will send a sale to competitors. -Account receivable: When calculating net worth. The amount that are owed for products and services that have already been provided to customers are added to the total value of other assets. It appears on balance sheet as an asset but it can negatively affect on cash flow. Although account receivable has a positive effect on balance sheet but also could affect in net worth. -Prepaid expenses and accrued income: This is a current asset, which is paid in advanced but has not yet been used up. As the amount expires, the asset is reduced and expense is recorded for the amount …show more content…
Cash dividend affects primarily cash and shareholder’s equity accounts. Nokia has ‘5832536262’ outstanding share, share owned by the group ‘52944582’ and the number of share excluding shares owned by the group ‘5779591680’ at 30th June 2016. Share market controls the company directly, so its effect balance sheet. Company’s shareholder’s dividend is payable, which is a liability account. If dividend get higher price in share market, its effect directly in company’s financial statement. It may control the profit and loss of the company. So share market control the balance sheet of
- Non-current assets
- Current assets
- Non-current liabilities
- Current liabilities
- Shareholders’ equity and etc.
These various finance and their relevant cost would have controlled by the financial statement of Nokia. Here is some example---
*Non-current assets:-
-Property, plant and equipment-
Property, plant and equipments are the biggest non-current assets of any company. It has a huge effect on the balance sheet. If the amount of property, plant and equipments are huge then the bank will consider the company as their first priority. They will provide loan very easily without any kind of complications. They may provide flexible interest rate of loan and extra time line for payback money for loan. These things help to increase the assets and fewer liabilities of company’s. On other hand share price will get higher. …show more content…
If assets increase, then share price get higher. This is how also increasing the net income and balance sheet is controlled.
-Available for-sale investments-
Available for sale investments carried on balance sheet at their right value and any change in right price between two reporting dates is taken to the shareholders equity as a separate component which is called ‘changes in fair price value of available for sale investments’. If the fair price value of an investment increase, the carrying amount of the investments is debited and changes in fair price value of investments is created. If the fair price value of the investment decrease, the carrying amount of the investments is decreased and the changes in fair price value of investment is debited.
*Current assets:- -Inventories: When inventory investment is reduced on a financial statement, it results lowering the cost of goods sold. In return, the net income before taxes will increase by the same amount of money. Reducing excesses inventories creates more cash that can be used by the company for any other purpose. Reducing too much inventory can result in poor customer relations as lack of availability will send a sale to competitors. -Account receivable: When calculating net worth. The amount that are owed for products and services that have already been provided to customers are added to the total value of other assets. It appears on balance sheet as an asset but it can negatively affect on cash flow. Although account receivable has a positive effect on balance sheet but also could affect in net worth. -Prepaid expenses and accrued income: This is a current asset, which is paid in advanced but has not yet been used up. As the amount expires, the asset is reduced and expense is recorded for the amount …show more content…
Cash dividend affects primarily cash and shareholder’s equity accounts. Nokia has ‘5832536262’ outstanding share, share owned by the group ‘52944582’ and the number of share excluding shares owned by the group ‘5779591680’ at 30th June 2016. Share market controls the company directly, so its effect balance sheet. Company’s shareholder’s dividend is payable, which is a liability account. If dividend get higher price in share market, its effect directly in company’s financial statement. It may control the profit and loss of the company. So share market control the balance sheet of