Consequently, financial decisions and corporate valuations in the real world are usually drawn and underpinned by the testimonial figures in a financial statement. This is because the financial statement according to Albrecht et al in 2002 after being prepared by account executives of companies are audited and as found sound will form the usual bundle doled out to bankers, suppliers, and investors to assess the economic strength and weaknesses of a company.
On the other hand, Jamie Pratt in 2003 supposed that a financial report contribute a vital part in speculative ventures, although primarily, the main concern is for stakeholders update on company financials’. For example, companies like Compass Group PLC, Toronto Dominion Bank, Harris Corp, Morgan Stanley, and Boeing Co, whose managers resolved to increase profit, thus, probably achieving economics of scale. This can be done by encouraging investors for additional capitalization. So, the managers will initiate the writing of a company financial statement to show the current economic status of the company. This financial statement will be made up of four collaborative papers such as balance sheet, income statement, statement of retained earnings, and statement of cash flows (Jamie Pratt, 2003).
No comments:
Post a Comment