Financial Statement Analysis and Disclosures

Financial Statement Analysis and Disclosures

Discuss the importance of financial statement analysis, and determine why it is important to investors and creditors.  Imagine you are considering investing in a corporation.  Suggest what key information you would look for in a company’s financial statements, and explain why this information is important to you. 

From the e-Activity, highlight the main elements that primary disclosure accounting policies encompass, and provide at least two (2) examples of the most commonly required disclosures.  Give your opinion on the way in which the disclosures you identified are important to financial statement users.  Provide a rationale for your opinion.

e-Activity

Go to the International Financial Reporting Standards (IFRS) Website to review authoritative guidance on “accounting policy disclosures”, located at http://www.ifrs.org in the search engine type in “accounting policy disclosures”.  Be prepared to discuss.