Financial Reporting

Financial Reporting

Michael Johnson

290

12/10/12

Michael Olsen

Financial Reporting

In any publically trading company it is vital to the growth of the company to release an annual report for internal users and external users. An annual report is a report generated for public use, distributed to a company's stockholders and other interested parties. In our research we will be looking at the annual report for Rosneft. Roseneft one of the worlds's leading petroleum companies based in Russia. In this assignment we will analyze the importance of specific parts of Rosneft's annual report, and in detail elaborate on each of their importances

In the year 2011 Rosneft total current assets equaled $25,642,000 and non-current assets equaled $105,968. For Roseneft these assets include: 18.35 bins of oil, 850 bin cubic meters of gas, fields or land to produce these items, 7 refineries in Russia, stakes in four German refineries and, 1,681 filling stations in forty-four regions in Russia. Knowing the total assets of Roseneft can play a crucial role in whether or not potential stock holders may or may not invest in the company. In most cases a company with a large amount of cash and marketable securities but low inventory is ideal to invest in.

When looking at Roseneft's 2011 cash and cash equivalents they reported a total of $117,000,00. Cash and cash equivalents are referred to anything in the balance sheet for which is liquid. Meaning at any time they can be easily turned into cash. This would also include short term investments which do not last longer than twelve months. Roseneft's short term investments for 2011 totaled to $4,655,000. The reason these assets are so important to a company's annual report is to provide with your shareholders and potential shareholders with some security. Security that incase of some unforeseen problem were to occur you have liquid assets which you can access. Cash and equivalents could include certificates of deposits, money-market funds, and treasury bills. Typically cash investments give stable principal often times fixed rates. They are also usually very low risk which is always a good option's to consider in any investment.

.