Techniques of Increasing Comparability and Reliability of Reported Accounting Numbers: Some More Advanced Tools
The first section of this chapter presents analytical adjustments aimed at mitigating the distortions stemming from significant non-controlling interests. Then, adjustments for the effects of long-term contracts (accounted for with the percentage-of-compl
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JACEK WELC
Reading Between the Lines of Corporate Financial Reports
Jacek Welc
Reading Between the Lines of Corporate Financial Reports In Search of Financial Misstatements
Jacek Welc SRH Berlin University of Applied Sciences Berlin, Germany Wroclaw University of Economics Wrocław, Poland
ISBN 978-3-030-61040-1 ISBN 978-3-030-61041-8 https://doi.org/10.1007/978-3-030-61041-8
(eBook)
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Preface
“There are more things in heaven and earth, than are dreamed of…” by financial statement users —William Shakespeare (paraphrased)
Corporate financial reports are involved in so many business and investment activities that it is impossible to overestimate their relevance for managerial decision-making. They are used by both corporate insiders (e.g. managers of corporations), for instance in budgeting and performance evaluation, as well as by external parties (e.g. stock market investors, creditors, suppliers or governmental agencies) which are interested in an assessment of a given company’s achievements and financial position. In fact, financial statements constitute a primary source of information used in an examination of corporate past results, but also in making investigations of a given entity’s long-term perspectives, simulations of its future economic performance and quantification of its business risk exposures. However, even though corporate financial reports constitute an invaluable source of information about an economic performance of co
