Calculations of Financial Statements

By - Updated March 31, 2016

The income statement, cash flow and balance sheet are closely related to one another. The income statement reports how much revenue a company earns and how much costs it spent in specific time period. The cash flow statement shows cash inflows and outflows, whereas the balance sheet reports the amount of assets, liabilities and equity the company has.

Companies may have different calculations rules to generate these statements.  The first step to build these reports in Kepion is to clearly understand the data flow across the accounts in these statements.  It is recommended to put all the calculation formulas into a spreadsheet for clarification.  In our Sample App-Advanced, we calculate cash flow statement from income statement and account mapping assumptions, and aggregate the cash flow accounts to get the values of the corresponding balance sheet accounts.   This spreadsheet contains all the related formulas .

Then we can perform these calculations in Kepion Data Rules.  In our sample application, you can find them in folder “5-Financial Calcs”.

Rules to Calculate Financial Statements