One of the critical components of financial statements is the audit report. While audited financial statements are not perfect they should be “good enough” that the informed investor, having read the financial statements, has enough data to make knowledgeable decisions based on the firm’s history and its management’s handling of finances.
Tag: accounting standards
This article examines whether a complete change in U.S. accounting standards is likely to happen, and if so, what it will mean to U.S. and foreign firms.
Special Purpose Entities (SPEs) have a useful role in business financing, but there must be transparency, and all parties must understand the risks.
The popular position of “expensing stock options” may not be a panacea to corporate governance.
No longer does one plus one always equal two – in a given reporting period anyway. What artistry.
Some managers are distorting the economic reality of their firm’s performance through “accounting hocus-pocus,” so analyze financial reports carefully!