ACCT 1A Chapter Notes - Chapter 10: Financial Statement, Financial Institution, S&P Global
Document Summary
People think the communication process between companies and financial statement users as a simple process of making the report available to individual shareholders who read and make investment decisions. Information goes from management either straight to users, or to information intermediaries and then users. Management (primary responsibility): includes ceo, cfo, and accounting staff. Information intermediaries (analysis and advice): includes financial analysts, and information services. Users (analysis and decisions): includes institutional and private investors, lenders, suppliers, customers . Financial analysts receive accounting reports and other information about the company from electronic information services. They gather information through conversations with company executives and visits to company facilities and competitors. The results of their analyses are combined into an analyst"s report. Analyst reports include forecasts of share price and future quarterly and annual earnings per share; a buy, sell, or hold recommendation for the company shares" and explanations for these judgements.
