Educating Users on the Key Factors that Contribute to the Usefulness of Financial Statement Analysis

DOI

10.2991/iced-18.2018.10How to use a DOI?

Keywords

Usefulness, Financial statements, Decision making, Users of financial statements.

Abstract

Financial statement for decades has been the key source of information for decision makings by several stakeholders. This study seeks to educate users on the key factors that contribute to the sustainable assessment of financial statement. In recent years, many giants companies have collapsed due to wrong information signal from their statement. Hence, this study seeks to provide the prerequisite guide needed in assessment of financial statement for effective decision making. This study offers three key contributions. Firstly, our study provides an overview of the ingredient for financial statement analysis. Secondly, the study educates and expounds on the factors accounting for financial statement’s usefulness. Thirdly, the study highlights the incorrect usage methods of financial statement that often results in negative consequences. Subsequently, the study analysed the three paramount negative outcomes: financial statement fraud, insufficient information and financial Crisis. The study further recommends for adherence to core principles in presenting financial statements as well as regular proper checks and balance in ensuring that the statements provide the requisite information for effective decision making.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Heng-Jie Xu
AU  - Hengjie Xu
PY  - 2018/11
DA  - 2018/11
TI  - Educating Users on the Key Factors that Contribute to the Usefulness of Financial Statement Analysis
BT  - Proceedings of the 3rd Annual International Conference on Education and Development (ICED 2018)
PB  - Atlantis Press
SP  - 61
EP  - 66
SN  - 2352-5398
UR  - https://doi.org/10.2991/iced-18.2018.10
DO  - 10.2991/iced-18.2018.10
ID  - Xu2018/11
ER  -