Why do we need to analyze financial statements of company

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1) Why do we need to analyze the financial statements of companies? Why do we have standards? Although they are standards, does this mean that all companies are analyzed exactly alike? How are we able to analyze the financial statements of companies of varying size, industry, etc.?

2) Why is it so important to understand the notes to financial statements when performing an FSA? Of the major types of notes, which, if any, has a greater impact on the results of an FSA? Why? How are the notes used in conjunction with the financial statements to evaluate company performance? What is the impact of different accounting treatments, such as leases, disclosed in the notes? Why?

Reference no: EM13500168

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