INTERNATIONAL
FINANCIAL STATEMENT ANALYSIS
a)
Analysis
Of International Business Strategy
Analysis of business strategy is an important first step in
the analysis of financial statements. This analysis provides a qualitative
understanding of the company and its competitors related to the economic
environment. The difficulties of analysis of international business strategy:
a.
Availability of information
b.
Recommendations for analysis
Steps in doing evaluation accounting quality of a company is
identify the main accounting policies, analysis of accounting flexibility, evaluation
of accounting strategy, evaluation of the quality of disclosure, identification
of the potential problems, and make adjustments for accounting distortions.
b)
Effect
Of Accounting Analysis Of Inter-State
Financial analysis covers different
areas of jurisdiction. This difference means that a very effective analytical
tool in the region to be less effective in other regions. The analysts also
often face a great challenge to obtain credible information. In most emerging
market countries, financial analysts often have high levels of confidence or of
limited reliability.
c)
Difficulty
Of Obtaining Information International Accounting
In obtaining the data of
International Accounting, there are several difficulties, among others: (1) Depreciation
expense adjustment will affect profits, it is necessary to consider the age of
the functions that must be decided asset management, (2) LIFO to FIFO inventory
adjustment supplies should be converted into the FIFO method, (3) Backup Backup
is the company's ability to pay or cover expenses for removing the load, (4) Financial
Statement Adjustments reformulation of some of the changes after a few
calculations on the points above TSB.
d) Mechanism Differences Between Accounting
Principles Of The State
In addressing the Inter-country differences in accounting
principles can be done by several approaches such as:
-
Some
analysts present the foreign accounting resize according to a group of
internationally recognized principles, or according to other, more general
basis
-
Some
of the Others develop a complete understanding of accounting practices in a
particular group of countries and companies to limit their analysis of
companies located in the State that State.
e) Difficulty Of International Financial
Analysis
Palepu,
Bernard and Healy make a framework useful
basis for analyzing and assessment efforts by using financial statement data.
The basic framework consists of four stages of analysis, namely:
-
Analysis
of Business Strategy
-
Accounting
Analysis
-
Financial
analysis (ratio analysis and cash flow analysis)
-
Prospective
analysis (forecasting and assessment)
f) Website For
Information About Research Company
To Obtain Information Research
Company, many companies do not make optimum use of disclosure of corporate
information via the website, both for financial and corporate sustainability.
Another finding in this study is that many companies can’t provide information
for investors, most of the information presented in the company's website is
about the products or services produced and the many companies that do not update
the information presented.
a. Internet Financial and Sustainability Reporting
a. Internet Financial and Sustainability Reporting
Since 1995, there have been
developments of empirical research related to Internet Financial Reporting
(IFR), which reflects the development of forms of corporate disclosure. Some
studies examine the factors that influence disclosure policy in the company's
website, such as research conducted by Pirchegger and Wagenhofer (1999) and
Saso and Luciana (2008a).
b. Corporate Social Responsibility
b. Corporate Social Responsibility
Understanding and awareness of
business entities to maintain good relations with all stakeholders in an effort
to minimizing negative impacts and maximizing positive impacts of the
operational activities of the company towards the development continuous this
is now understood as a CSR (Corporate Social Responsibility. Strengthening the
sustainable development paradigm and corporate social responsibility
initiatives CSR reporting or making social and environmental performance are
considered as important as the reporting of economic performance. biggest
problem is that the quality of non-financial reports are not yet as good as the
quality of financial reporting. In addition to far adrift age (> 500 vs.
10-20 years), the gap between the two is marked by a degree of formality, the
destination number and interval report.
Gazdar (2007) states there are four things that
make non-financial reporting is why it becomes very important: First, the
company's reputation. Second, serving the demands of stakeholders. Third, help the company make decisions. Fourth, making investors easily understand the performance of the company.
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