An accounting analyst evaluates
public company
A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange ( ...
financial statement
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form which is easy to un ...
s. Public companies issue these (
10-K) annual
financial statements
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form which is easy to un ...
as required by the
Security and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
. The statements include the
balance sheet
In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a Partnersh ...
, the
income statement
An income statement or profit and loss accountProfessional English in Use - Finance, Cambridge University Press, p. 10 (also referred to as a ''profit and loss statement'' (P&L), ''statement of profit or loss'', ''revenue statement'', ''stateme ...
, the
statement of cash flows and the notes to the financial statements. Specifically, the notes to the financial statements contain considerable quantitative detail supporting the financial statements along with narrative information.
Description
This individual has extensive training in understanding financial accounting principles for public companies based on
generally accepted accounting principles
Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders. Some firms operate on th ...
as provided by the
Financial Accounting Standards Board. Or, he/she may have additional experience in applying international accounting standards based on the rules put out by the
International Accounting Standards Board.
As an example, the accounting analyst may work for a financial research company evaluating differing financial accounting principles and how they influence the company's reported wealth.
Professional Requirements
The accounting analyst will most likely hold an accounting qualification. The analyst may have an
MBA
A Master of Business Administration (MBA; also Master's in Business Administration) is a postgraduate degree focused on business administration. The core courses in an MBA program cover various areas of business administration such as accounti ...
degree with an Accounting specialization.
In addition, the analyst may hold the
Chartered Certified Accountant
Founded in 1904, the Association of Chartered Certified Accountants (ACCA) is the global professional accounting body offering the Chartered Certified Accountant qualification (ACCA). It has 240,952 members and 541,930 future members worldwi ...
(ACCA) or
Certified Public Accountant (CPA) or
Chartered Accountant (CA or ACA) designation.
See also
*
Accountant
*
Financial analyst
A financial analyst is a professional, undertaking financial analysis for external or internal clients as a core feature of the job.
The role may specifically be titled securities analyst, research analyst, equity analyst, investment analyst, ...
{{DEFAULTSORT:Accounting Analyst
Accountancy occupations
Financial analysts