Transcription of FINANCIAL STATEMENT ANALYSIS - Pearson
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INTRODUCTION TOFINANCIALSTATEMENTANALYSISUpon completion of this chapter, you should be able to: Understand the decision emphasis of FINANCIAL STATEMENT analysisand why a comprehensive approach is needed to meet this objec-tive. Indicate who uses FINANCIAL statements and how they use them tomake decisions. Show the importance of generally accepted accounting principles(GAAP) to ANALYSIS , which organizations determine GAAP, whyGAAP differs among countries, and the benefits of harmonizingGAAP. Determine the various concepts of capital maintenance andattributes of asset measurement.
Analysts can find value in all of these information sources, provided they adjust for existing biases. ... investment bank earned over $10 million annually for its services to the North ... be earned through financial analysis. This might lead one to ask, “Why should
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