About Financial Analysis
The purpose of the financial statement is for A. G. Barr plc. identification and measurement of the economic information that is used to permit the stakeholders to make informed decisions and judgments about the situation. The financial statement is a process of accounting activities that are systematically classified into income statement, cash flow statement, balance statement and statement of equity (Zeff, 2016). These present findings about the financial health and future prospects of the company. The most important factors are transparency of the findings. These enable the stakeholders to make assumptions and future predictions of the company. In this analysis, it will analyse the use of A. G. Barr plc. Company financial statement.
Issues in Reliability of Conducting Financial Analysis
Owing to these factors, companies such as A. G. Barr try to ensure that reliability in the finding is present. The most important factor in the presentation of the financial statement is considering the accounting reliability. This reliability refers to how the financial information or future predictions about a particular stock can be verified. This would enable the stakeholders to use the investors and creditors to consistently verify the results. Owing to these requirements, a classification can be made possible. The three main attributes are used to check the reliable financial information (White, Sondh and Fried, 2005). This is verifiability of the data, faithfulness or credibility of the company along with the neutrality factors. Nebulous presentation of this information would make particular financial statement to be unreliable to those outside the creditors or investors. Hence, the A. G. Barr needs to understand certain important factors in the conducting of the financial analysis.
Owing to this, it can be alluded that the financial analysis is dependent on the credit worthiness and the credibility of the company. The evaluation of these financial methods is detailed in the following.