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Do you think the financial statements provide reliable information?

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2016/12/25
Syed Bassam Haider
by Syed Bassam Haider , Assistant Manager , Axis Bank

Of course. It give the real face of company. One can judge company on the basis of financial statements only.

Mohamed Mahmoud Azzazy
by Mohamed Mahmoud Azzazy , junior accountant , ARAMEX

yes but it depends on accountants and auditors integrity and analysis

Ashraf E. Mahmoud (PhD)
by Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation, 

Of course,the financial statements reflect the actual activities of the organization during the financial period in terms of real figures. 

Walid Al Maleh
by Walid Al Maleh , Operations Team Leader , Transportation

Sure it is the financial statements providing reliable information .

Ali Hassan
by Ali Hassan , Assistant Finance , Jeffery Travels & Tourism

Financial statement act as reliable source of information for decision making by various stakeholders. for this reason, companies are bound to obtain opinions on the truth and fairness of the financial affairs by independent auditors. 

Ibrahim Akram
by Ibrahim Akram , Senior Specialist ( Budgeting , Costing and Reporting) , Maaden

The reason why financial accounting reporting is being standardized is to interpret the business covering maximum aspects. These standards are principle based So a small risk prevails if the business reporting does not consider specific nature and need of business.

I totally agree due to high evolution of financial standards the financial statements are the main source of reliable information but based on our need some time we have to consider other aspects to mitigate the limitations  of financial statements. 

  1. These are measured in terms of Money.
  2. These are based on estimation,significant accounting policies, judgements etc.
  3. Many aspects are historical, reflections of transactions that occurred already.
  4. only entity transactions are covered , no information of competitors - economic environment.

so for a wide scanning,measurement,and evaluation of a business a comprehensive due diligence is required but here the financial statements are of great source of information but may contain some limitations.