Quality indicators and methods of analysis of financial statements

Abstract

The information option involves the disclosure of information about assets that provide operational, financial and investment activity). The expediency of providing such information in the balance sheet is related to the necessity of control over the expectation of priority at the level of profitability of assets, the importance of monitoring the risk of capital yield, and the provision of comparative characteristics of the profitability of the organization's business in comparison with the competitor.

Financial statements should have a number of quality indicators, which will be discussed in this chapter. It is also possible to find cases where one quality is in conflict with others. For example, financial statements should be easy to understand for users. At the same time, all important information should be reflected in the financial statements. When preparing financial statements as an accountant for a chemical plant, we are faced with two choices: either we separate the raw materials received by chemical name (to meet the materiality requirement), or we can simply record the raw materials received as a whole (to meet the comprehensibility requirement)