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Financial Modelling Fundamentals
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The Financial Statements Module Area is one of eight interconnected Module Areas of a
spreadsheet model as shown in the diagram below. These generic Module Areas can be used
to develop a “whole-of-business financial modeleach of the three financial statements. Each of these financial statements has the purpose of
summarising a different component of an entity‟s financial position. The three different
Module Types within the Financial Statements Module Area are:
1) Income Statement;
2) Balance Sheet; and
3) Cash Flow Statement.
It is important to understand the purpose of each of these three Financial Statements Module
Types, and the functionalities that can be included within them to meet the requirements of
model users. It is also important to understand how they can be interlinked with modules
from other Module Areas, to ultimately create the required components of a spreadsheet
model.