Here is the synopsis of our sample research paper on Can Investors Rely on Annual Accounts. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 10 page paper considers how reliable the annual accounts of companies can be. The paper look at how annual account can and are used, and the ways that the results may be manipulated with creative accounting. The limitations are also discussed, including how some information may be omitted. The points raised are illustrated by reference to the 2002 Parmalat accounts. The bibliography cites 7 sources.
Page Count:
10 pages (~225 words per page)
File: TS14_TErelyannual.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
many elements within the annual accounts that may not be as interpreted, it is also possible to argue that annual accounts are not giving the information that the shareholders are
seeing. There are many problems with annual accounts. They appear to give a great deal of information, but in reality there are more omissions, and also plenty of opportunities for
the accounts to be manipulated with clues only being seen in the notes, which many investors will not read, or not requiring any declaration at all. This is before a
individual or company start to consider elements of creative accounting and how figures may be manipulated. The first element that needs to be remembered of any set of accounts
is the way they are out together and the time frame. Any set of accounts, will, by their nature, be out of date by the time they are released. This
does not mean they have no value, but it does place them in a different context than current information. The process of annual accounts is to give a record of
the last year pf trading. Once these have been produced they will already be out of date for the company, sometimes making some figures difficult to check. The process of
auditing then has to take place. This also takes up additional time, a set of accounts will therefore be couple of months out of date before they are even
published. Looking at the accounts, there can be value in terms of the trends that are produced as well as the figures that are shown. However, like any form
of information they should not be used in isolation. For example, if we consider the position of Parmalat, the Italian dairy company that operated globally, that has declared bankruptcy and
...