What type of information a company may or may not want to share in financial statements that are publicly available. Why or why wouldn't a company want to disclose their product costs at a high level of detail?
SOLUTION:\
The financial statements of the Company, which are made publicly available, include
a. The Financial Position of Company i.e. Balance Sheet
b. The Financial performamce i.e. Statement of Profit or loss (Comprehensive Income and Other CI)
c. Cash Flows i.e Cash flow Statement
The details in the financial statements are mostly in relation to the overall performance of the Company i.e. Total revenue and expenses incurred with tax expense on the same. These details are further given at Schedule level i.e. a stream wise or classification wise.
Also, the details in relation to the assets and liabilities of Company as at period end are given at schedule level.
Further, the details of cash flows of company usually prepared under Indirect method are shown in financial statements.
Examples of few details which a company may not share in publicly available financial statements:
1. Value of future contracts which are in discussion state
2. Procedure for manufacturing a product
3. Technical details of any software product etc..,
A Company would not disclose their product costs at a high level of detail in financial statements as it gives undue advantage to its competitors i.e. more information will be made available to its competitors and they may take undue advantage of the same i.e. lobbying with the suppliers etc..,
What type of information a company may or may not want to share in financial statements...
The notes to the financial statements:
1.
2.
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