Check that the source contains all the information needed to complete the analysis model for each of the periods of interest
What is meant by the Analysis model?
To analyze a financial statement or an accounting structure in general, it is necessary to reclassify the financial statements using specific formats. The "primary" reclassification model adopted by Leanus provides:
- The Value Added Income Statement and Contribution Margin
- The balance sheet with sources and uses
Having obtained these schemes, Leanus processes the whole analysis model that is, it automatically calculates the Cash Flow Statement and the set of further table and graphical analyzes that derive from it.
The reclassification of the Balance Sheet to Sources and Uses requires that the balance sheet data be complete with the necessary details, or include:
- Customer Credits
- Other credits
- Payables to Suppliers
- Payables to Banks
- Other payables
In the absence of such details, as for example in most abbreviated financial statements, or in case of reclassification errors made by the user, NO SARA' POSSIBLE obtain the “balancing of the Balance Sheet with Sources and Employees
In these cases, Leanus highlights with a "Red dot" the accounting period for which the balancing was not obtained and with a "Red triangle" placed to the left of the denomination
Il Triangle placed to the left of the Denomination, if "Green”Indicates that the analysis model is complete for each year;
If “Red”, at least for one year (highlighted by a red dot next to the date) it was not possible to complete the reclassification model.
Does the Triangle relate to the squaring of the Source-Employment scheme (Primary or management reclassification)?
In order to complete the Primary reclassification model and obtain the Green (or Orange) Triangle, the Total Sources must correspond to the Total Employment.
Il Quadrature Control Box it will help to identify the causes that determine the squaring
Is the Triangle red even if the complete reclassification is not obtained for a single period?
If even for a single year (or accounting period) such conditions do not occur, Leanus highlights the complete failure of the analysis model with a Red Triangle placed to the left of the Company Name; Leanus also highlights with a "red dot" in the header of the column, for which year or accounting period this condition does not occur.
If the triangle is red, does it mean that the data source is wrong?
No. It means that there is not all the information necessary for completing and balancing the management schemes. Obviously, if the balance sheet or the accounting situation is incorrect, Leanus in addition to showing the Red Triangle, highlights with a special symbol that it has detected an anomaly in the balance sheet or accounting situation "Source"
For which type of financial statements is the red triangle obtained?
For abbreviated financial statements or accounting situations that contain details of payables and receivables
For financial statements or accounting situations for which an incorrect reclassification has been made
For erroneous balances and with missing values that do not allow to obtain the squaring of the source.
Does it mean that when the triangle is red it is not possible to carry out the analysis of the company?
DO NOT. It means that it is not possible to refer to a complete analysis. All the elaborations consistent with the quality of the data source and relative reclassification will be available
What can be done to complete the reclassification model?
If you have enough information or intend to run simulations, simply supplement the missing information using the corrections (for example, it is sufficient to access the Balance Sheet, click on the pencil corresponding to the year to be modified, enter the appropriate adjustments and click on update. If the information entered is correct for accounting purposes, the Orange triangle will be obtained.
In the case of abbreviated financial statements, if the detailed information is not available, what analyzes can be carried out?
For abbreviated financial statements, the Balance Sheet (Abbreviati financial statements) is available, a simplified scheme that contrasts assets with liabilities. Obviously, analyzes relating to working capital or to Pfn obviously they will not be available.