Information Sources for Analysts
Analysts tend to base their financial statement analysis on the company’s audited, annual financial statements to get a relatively accurate picture of its financial position and performance. In this case, the annual financial statements audit must have been done by…
Alternative Financial Reporting System and Developments in Financial Reporting Standards
The goal of global convergence has been advanced by adopting IFRS in many countries outside the US as the required financial reporting standard. However, several differences exist between US GAAP and IFRS that affect how companies report their financial statement….
Importance of Regulatory Filings, Financial Statement Notes, and Supplementary Information
Regulatory Authorities Publicly traded issuers are required to prepare financial reports in accordance with specific securities laws, regulations, and accounting standards set by regulatory authorities. Since corporate reporting standards and securities regulations can vary across jurisdictions, there is a need…
Roles of Financial Statement Analysis
The primary goal of financial statement analysis is to assess a company’s past, present, and potential future performance and financial condition. This involves using the company’s financial reports, along with other relevant information, to make informed investment, credit, and other…
Financial Statement Analysis Phases
Financial analysis is the process of interpreting and evaluating a company’s performance and position in the context of its economic environment. Analysts use financial analysis to make investment decisions and recommendations. As a generic term, the financial statement analysis framework…
Trading Blocs
A trading bloc is a group of countries that have mutually agreed to reduce and progressively eliminate barriers to trade (for example tariffs) and the movement of factors of production among the members of the bloc and may or may…
Types of Trade Restrictions
Governments may enact policies that limit the free exchange of goods and services between countries. Such policies are known as trade restrictions or trade protections and include tariffs, import quotas, voluntary export restraints (VER), subsidies, embargoes, domestic content requirements, and…
Costs and Benefits of International Trade
Most economists agree that the advantages of international trade overweigh the disadvantages. Below are the main benefits and costs associated with international trade. Benefits of International Trade Countries gain from exchange and specialization: Countries receive high prices for exports and pay…
Impact of Geopolitical Risk on Investment
Notably, economic expansion, interest rates, and market volatility are all impacted by geopolitical risk in the capital markets. Geopolitical risk can dictate the suitability of a security or investment strategy for an investor’s objectives, level of risk tolerance, and time…
Tools of Geopolitics
Geopolitical tools refer to methods used by geopolitical actors to pitch their interests before others. These tools ultimately result in geopolitical risk. Tools of geopolitics may be separated into: National Security Tools: Tools for national security are those that are…
