Most of the information provided by companies to the public consists of detailed financial data. It related to three categories :
Market Data
Market Information is continuously provided by companies, stock exchanges, various electronic data delivery systems and the media. Trading information is provided constantly while stock exchanges are open. Some trading systems allow transactions beyond specific trading hours.
Financial Reporting & Accounting Principles
The most comprehensive sources of company-specific information is the annual report and any interim reports the company may issue. There are some differences in the methods of financial reporting, depending on the purpose, but the underlying theme is that companies should openly disclose their activities. The format of financial reports varies by country and company. Financial analysts bear the burden of this accounting diversity. There is no perfect set of accounting standards for analysts. For one thing, ”no one is trained” to deal with the existing multitude of accounting standards. Accounting may not be a science, but a scientific analysis of each issue will help to construct a coherent set of accounting standards for global financial analysis.
Financial Statement Items
Corporate financial information is routinely made public through annual and interim reports. Most of it is summarized in an Income Statement, Balance Sheet and Cash Flow Statement. A database format for financial statements can be customized for each industry. However, it is clear that a balance must be maintained between the desire to establish a flexible database to optimized analysis and the cost involved.
The rules for preparing and understanding financial statement:
*General Accounting Procedures
*Accounting Principles
*Application of Accounting Principles
*Specific Accounting Policies
*Disclosure and presentation of “insider information”
For complete publication... send your email to CFAR GuestBook and Join as CFAR Member!!
No comments:
Post a Comment