THE INTERPRETATION OF FINANCIAL STATEMENTS IN TERMS OF CONTEMPORARY FINANCIAL ANALYSIS

Authors

Keywords
capital market; analytical models; economic value added; interpretation of financial statements

Abstract
The evolution of financial analysis is accompanied by an extensive use of indicators whose calculation is based on data provided both by entities in their financial statements and by financial markets. The analysis of data and indicators generated by the capital market is considered to be of primary importance when studying the financial position of enterprises. This view is supported by a substantial number of analysts and, although not applicable to all enterprises, it raises a number of questions, two of them being whether the new analytical indicators are replacing the classic indicators of financial statement analysis and whether financial statements have retained their fundamental role as a primary source of data in studying the financial position of enterprises. The objective of this paper is to answer these questions by approaching the interpretation of financial statements within the context of some unorthodox views about the evolution of financial analysis.

JEL: M 41
Pages: 11

To view the full text of the article click on the relevant button below.

More titles

  • AN ASSESSMENT OF INFORMATION SYSTEMS FOR THE INDEXATION AND ANALYSIS OF ONLINE PUBLICATIONS

    The article studies the methodological issues related to assessing the information systems for the indexation and analysis of information available on the Internet. The comparative analysis of such information systems can be performed only after we define in advance assessment indicators and experts determine their levels of significance (weighted ...

  • DOES HOST COUNTRY CULTURE AFFECT FOREIGN RETAILER PERFORMANCE?

    Using Hofsede’s framework of national cultural orientation, we examine whether cultural values can explain foreign retailer performance. Our results show that host country individualism and uncertainty avoidance are negatively related while host country indulgence is positively related to foreign retailer performance. We also point to theoretical ...

  • THE CURRENT STATE AND DEVELOPMENT PROSPECTS OF MOBILE AND ELECTRONIC PAYMENTS IN BULGARIA

    Present – day mobile and electronic payment systems, like all innovative solutions, do their best to meet the requirements of the business by being in line with its technological capacity. Online payments have a number of benefits not only for the banks and institutions that implement them but also for the clients and sales companies that use them ...