Using foreign financial statements

College
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Finance & Accounting
Pages 3 (753 words)
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The article is about a very important field in contemporary financial world,the skills' requirements to read financial statements of foreign companies and extracting information of interest from these financials.The article presents some techniques that organizations usually employ when their financial statements are provided to foreign users.

Introduction

The article is about a very important field in contemporary financial world,the skills' requirements to read financial statements of foreign companies and extracting information of interest from these financialsThe article presents some techniques that organizations usually employ when their financial statements are provided to foreign users. This ranges from doing nothing (in which case the financial statements might be in non-English language with figures shown in local currency and might not follow Generally Accepted Accounting Principles - GAAP, or International Financial Reporting Standards - IFRS) to a completely new set of statements, explicitly prepared for United States. Known as secondary statements, these are developed to provide statements in United States English, with the use of either US GAAP or international standards on Accounting. The purpose is to give users a similar sort of statement that they are used to deal with in United States.The article moves on to identify the differences in financial statements' presentation layout and style that might appear in financial statements of a foreign company based on its particular location, usage of accounting standards, and norms in the country. A CPA or financial analyst must be equipped with relevant skills and necessary expertise to be able to deal with these differences in the financial statements presentations. ...
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