Thematic Analysis of Income Statement
Rosemary Obiageri Obasi
Benson Idahosa University - Department of Accounting
Mercelina Chizoba Ekweme
affiliation not provided to SSRN
November 2, 2009
This study focuses on finding out the reasons why some companies which report profit may lack cash for distribution. Ten (10) companies listed on the Nigerian Stock Exchange (NSE) formed the subject of the study using their financial statements. Specifically the profit and loss account (P&L) was used as the unit of analysis. Document/content analysis was adopted. Each item in the P&L account was thematically studied to find out what is responsible for cashless profit reported by companies. Credit transactions (credit sales and credit purchases) were found to explain the reason for cashless profit. This finding also lead to a proposed Two Column Profit and Loss Account (TCPLA) that will be more transparent and reliable to users.
Keywords: Thematic analysis, TCPLA, Credit transactions, Cash profit
JEL Classification: M41working papers series
Date posted: May 19, 2012
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 1.375 seconds