I wish to star my rap om topic 8 my problem is one of the companies I wish to analyze adjusted its financial year from September 2015 to December 2015 meaning that that year has 15 months. My problem is how do o go about this?, Should I make some adjustments to this year and how?. How about 2016?
Yes this is a bit of a problem. It may depend upon why they have charged their year end – were they recently taken over by another company? If so this might make it unsuitable.
However otherwise you could adjust the financial statements to make this last year 12 months by dividing the income statement by 12/15 which would give you an approximation of Jan to Dec 2015. This also would mean going back to the previous year end Sept 2014(?) and taking 9/12 representing Jan to Sep and adding 3/15 of Oct 2014 to Dec 2015 as this would represent Oct to Dec 2014 so that you ended up with an approximate year Jan to Dec 2014. Similarly you would need to take 9/12 of year end 2013 and add 3/12 of 2014 to get the full figures representing Jan to Dec 2014. Fortunately you could probably use the Balance sheet figures as they are (unless there was a share issue between Oct to Dec 2015).
This all sounds complicated but with a spreadsheet is not as bad as it sounds.
Alternatively choose a different company!
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