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The statement of financial performance is based on data relating to past transactions and events. Hence the statement of financial performance is of no use to an investor’s decision making process.
Essay specific features
Written by:
Diana V
Date added:
April 12, 2012
Level:
University
Grade:
A
No of pages / words:
2 / 376
Was viewed:
5632 times
Rating of current essay:
Essay content:
Many decisions are based on profit and risk and therefore significant in predicting future profits and getting feedback on decisions. With regular production of statements of financial performance managers are able to compare the performance against budget and identify any problems which they can deal with immediately...
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For example, David Jones was hoping its loss-making Foodchain group would break-even with its competitors (Woolworths and Coles Myer) the following year by opening six more stores around Australia.
The main data in the statement of financial performance are revenues, expenses, and net profit/operating surplus or net loss/deficit of an entity for a certain time period...
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