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Scope Of Financial Statement Analysis Essay

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Scope of Financial statements analysis:
International Financial statement analysis Robinson, Greuning, Henry, Broihahn 2009,
According to Framework for the Preparations and presentation of financial statements (international Accounting Standards Committtee, 1989)The role of financial reporting by companies is to provide information about their performance, financial position, and changes in financial position that is useful to a wide range of users in making economic decisions.

The purpose of financial statement analysis is to evaluate the past, current, and future performance and financial position of the company for the purpose of making investment, credit, and other economic decisions.

Financial statements are the end results of an accounting record-keeping process that records the economic activities of a company. They summarize this information for use by investors, creditors, analysts and other interested in a company’s performance and financial position.

The key financial statements that are the focus of analysis are the income statements, balance sheet, statement of cash flows and owner’s equity. The income statement and statement of cash flows portray different aspects of a company’s performance over a period of time. The balance sheet portrays the …show more content…

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