Financial Statements are a significant part of business finance which shows the historical of the company and expected future forecast of the company. Normally, there are three financial statements should be used balance sheet, statement of income statement, and statement of cash flow. First, the balance sheet help to understand company annual accounts. In the United States, Companies usually have two common formats for their balance sheets: the "two-sided" format which assets on the left side and liabilities and owner’s equity on the right side. The other format is the assets part on top and the liabilities part and owner's equity part on bottom, which is normally called "report" format. The difference is how you disposal account information. The third way is named as "Financial Position" format that is generally used in Europe. (Lita n.d.) In our selected bank industries, Bank of America, Deutsche Bank, Swedbank ,National Australia Bank and HSBC Bank are all using "report form" type which with assets at the top on a single page. (Appendix) However, Christopher (2012) explained that some companies are using "financial position" format which would like to put accounts in order to calculated net current assets and net assets. Moreover, the assets and liabilities should be proposed in some specific order in balance sheet. The most easiest way to realized assets is in liquidity order. It is displayed of decreasing liquidity which means cash first, or, increasing order of liquidity which means from intangible fixed assets. In order of liabilities, it will be shown in the most instant liability being placed first. (Business accounting guides n.d.) Generally, the increasing order is used by countries in EU and the decreasing order is used by countries affected by USA. (Christopher, 2012) For example, in all selected five banks are used decreasing order for assets which showed on 2011 balance sheet. (Appendix)
Just like balance sheet, there are several ways of...
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