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Of course. It give the real face of company. One can judge company on the basis of financial statements only.
yes but it depends on accountants and auditors integrity and analysis
Thanks for invitation,
Of course,the financial statements reflect the actual activities of the organization during the financial period in terms of real figures.
Sure it is the financial statements providing reliable information .
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.
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.
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.