BA 3340 Lecture Notes - Lecture 99: Investment, Financial Statement, Going Concern
Document Summary
Three groups (users perspec-ves) that receive guidance from (inside and outside) analyst but with very di;erent views. The purpose of the analysis decides which decision model to apply. The decision model determines which types of informa-on are requested and which (>nancial) ra-os are used in the >nancial statement analysis. It is vital that the user of >nancial data is aware of the data requirements that each decision model is based on. The analyst must comprehend that the use of accoun-ng informa-on may vary depending upon the purpose of. The use of accoun,ng informa,on depends on the purpose of 4nancial statement analysis and the decision model adopted! Example (p. 1): the inventory of a company burns and the company is under-insured, hence a loss must be recognized. If the purpose of the analysis is to predict future trends in pro>tability in order to do.
