Financial Statements

Conceptual Frameworks and Financial Statements

It has been said that financial statements provide comprehensive information about the reporting entity that is useful to existing and potential stakeholders. While that is generally considered to be true, it is important to address what makes it true. Financial statements are created by the company to which the financial information belongs, so there is some concern that these might not be as accurate as they would be if they were to be completed by an independent party (Hall & McKeith, 2010). This is why some financial statements will be independently verified and that information will be included in the statements. By doing that, the company is putting their information on the line and saying it is clearly correct (Elliot & Elliot, 2011). That can help investors and others when they are trying to make a decision about the financial health of a...
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