Financial Statements Assumptions

These options configure the financial statements worksheets. See Working with Assumptions.

Tip: You can jump to the Financial Statements Assumptions from the relevant financial statements worksheets by clicking on the Assumptions button in the Desktop Toolbar.

Out of Balance Indicators

Determines if Out of Balance Indicators appear on the balance sheets. The indicators appear at the top of the column for each financial period that is out of balance.

Annualization Rate Calculation Method

Determines the annualization method that is applied to a partial period. Enabled if the most recent fiscal period is a partial or stub period. If the most recent period is a full year, the assumption is grayed out. See the First Fiscal Period Ends and Last Fiscal Period Ends assumptions on the Project Assumptions Sheet.

See Annualizing a Partial Period.

COGS and Inventory

Determines if Cost of Goods Sold (COGS) accounts appear in the income statements and if Inventory accounts appear in the balance sheets. If the subject business does not require these accounts, set this assumption to False.

Pass Through (No Tax Lines)

Determines if the Income Taxes account appears on the income statements. If the business is a pass through entity and doesn't pay income taxes, set this assumption to True.

Tax Effect Pass Through

Adds tax lines to the income statement adjustment worksheets so that you can apply taxes to a pass-through entity. Disabled when the Pass Through (No Tax Lines) assumption (see above) is set to False. See Adjusting the Financial Statements and Adjusting the Income Taxes Account.

Adjusted Balance Sheets

Determines if worksheets appear for adjusting all of the balance sheets, or only the most recent one. Disabled when the Number of Balance Sheets assumption on the Project Assumptions Sheet is set to Most Recent Only.

Show Summary Statements

Determines if the summary financial statements are displayed or hidden. When this assumption is set to True, you can display and print the summary statements.