Financing Activities.Management often has the opportunity to account for transactions in ways that improve the ratios of the corporation. As long as the decisions are made within the rules of GAAP or IFRS, there is no reason why management can't choose the best reporting method.
As financial analysts we spend a lot of time trying to understand financial statements. Current SEC regulations require a lot of disclosure. Use the attached 20F for Aegon NV to answer the questions. Response should be a minimum of 1,000 words and all references should be cited in APA format.
1. In the 10K, review the (1) Selected Financial Data, (2) Management's Discussion and Analysis of Financial Condition and Results of Operations, and (3) Consolidated Financial Statements and Supplementary Data sections.
2. As an analyst, what are some of the disclosures that caught your attention? Changes to accounting rules, differences to GAAP, unrecognized losses, legal proceedings, related party transactions, subsequent events, etc?
3. Are there significant differences between profit in the Income Statement and the Statement of Cash Flows? Where is the cash being spent?