Accounting Analysis of Orange SA's 2018 Financial Report
Download
Read an extract
Themes
Orange SA, financial report, accounting analysis, balance sheet, income statement, equity evolution, inventory operations
Reader
Abstract
Extract
of 4
Abstract
This document provides an in-depth analysis of Orange SA's 2018 financial report, covering accounting treatments, balance sheet and income statement accounts, inventory operations, and equity evolution. Discover how the company's financial resources have changed over the year.
Extract
[...] The accountant also makes a forecast of certain future risks and charges on the account for risk and charge provision with an adjustment by allocations or reversals. The risk and charge provision account has been analyzed in question 1. Ch. How do the balance sheet and income statement accounts reflect the company's activity? The balance sheet reflects, at a given moment, the company's patrimonial situation with its assets and liabilities. In the case of Orange, it is observed that the total of the asset/liability is higher by 3,427 compared to the 2017 exercise. [...]
[...] What are the inventory operations performed by the accountant at the end of the exercise (see annex notes 4.7)? The accountant records the products found in advance on account 487. These are the products received or recorded before the services have been provided or performed. (Note 4.7) Here, a total of 1567 is recorded for the account of financial products found in advance and 502 for the account of production found in advance operations. The accountant also records the charges found in advance on account 486. [...]
[...] In the case of Orange SA, it is observed that the equity has increased by 1050 between the beginning and the end of the 2018 period. The financial resources of the company have therefore increased. It is stated that no new shares were issued in 2018. We can therefore deduce that the unit value of a share has increased. (All numbers used in this document are in millions of euros. [...]
[...] Upon analyzing Orange SA's income statement, it is observed that the net result of 2018 is lower than the net result of 2017. A net result lower by 101 over a year of exercise. Therefore, it can be deduced that the company has impoverished itself. Ch. Comment on the evolution of the company's equity (see annex note 4.1). Equity is the financial resources of the company, excluding debt. A company invests and generates equity for its proper functioning, while also paying its shareholders. [...]
