The Use of a Statement of Changes in Financial Position to Interpret Financial Data: An Empirical Investigation |
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Authors: | MICHAEL BRADBURY SONJA NEWBY |
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Affiliation: | Michael;Bradbury, Senior Lecturer in Accounting, University of Auckland, New Zealand. Sonja;Newby, National Director of Professional Practice for Peat Marwick. |
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Abstract: | This study provides empirical evidence on the use of a statement of changes in financial position by financial analysts to interpret and make judgments on information contained in annual reports. Analysts were required to answer five questions developed from claims made in a professional accounting standard about the purpose of the statement of changes in financial position. The results indicate that the statement of changes in financial position does not generally enhance financial analysis. |
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Keywords: | Financial reporting Financial statement analysis Funds statements |
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