Folder:
115 CFA
File:
115.040.01.01 Financial Analysis - Reading 19 - 1. The Roles of Financial Reporting and Financial Statement Analysis

1. The Roles of Financial Reporting and Financial Statement Analysis

a. describe the roles of financial reporting and financial statement analysis;

What is the role of financial reporting?
The role of financial reporting is to provide information about a company's financial position and performance for use by parties both internal and external to the company. Financial statements are issued by management, who is responsible for their form and content.

What is the role of financial statement analysis?
The role of financial statement analysis is to use the financial statements and other information to evaluate the company's past, current, and prospective financial position and performance for the purpose of making rational investment, credit, and similar decisions.


Source:
  • CFA