Department of Business Administration
ALLAMA IQBAL OPEN UNIVERSITY ISLAMABAD
(COURSE CODE 528)
“Compare three years’ balance sheet of any organization and highlight
the variation in its shareholders’ equity section. Discuss the reasons
for variation as well.”
Mr. Sultan Mahmood
First of all, I am thankful to my great God, Who bestowed upon me His blessings,
which enabled me to accomplish this goal successfully. I am also thankful to the people who
helped in preparation of this report.
I thank Department of Business Administration, AIOU, Islamabad, for giving me the
opportunity to work in a very interesting area. I wish to acknowledge the encouragement and
wholehearted support extended to me by my tutor Mr. Sultan Mahmood, who, from the
inception, helped and guided me a lot and was a key person to assist me in completing this
assignment. His most significant contribution was to clarify the concept of financial accounting
and his efforts were very befitting.
I wish to express my deep appreciation to my parents, friends and colleagues for their
valuable moral supports, suggestions, which enabled me to materialize this issue.
Financial analysis refers to the provision of information to external users concerning financial
position of an enterprise, its financial strength, profitability and liquidity and significant
changes in its resources and obligations. It helps users to understand the content and limitations
of financial statements. It provides information that help creditors and investor in making
decisions of investment and crediting money.
One of the primary ways investors and creditors assess the probability that an enterprise will b