Significance of Financial Reporting

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Written by:

Edward M


Date added:

August 11, 2013








No of pages / words:

6 / 1652


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Investors have started to invest their capital in risk free securities rather than in company stocks. Investors have also started to look with contempt and doubt at a company?┬Žs financial reports because some of these collapses were preceded by financial frauds cleverly covered by the management of such companies...
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Investors have arrived to a stage where they no more trust the financial reports provided by the company. However some of the intellectuals believe that financial reporting is of no significance for investment decisions. The reason being the fact that most of the financial reports are historical and they have already been taken into consideration while deciding the price of the stock of the company and it also does not give an idea about the future position of the company...
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