THE FINANCE GHOST: How to really read an income statement

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So much of what makes a financial statement is either unintelligible, or unnecessary. But there are some numbers you really should care about, writes FinanceGhost.

I studied accounting and I have the coveted CA designation after my real name, so I’m acutely aware, and highly frustrated, that financial statements are nowhere near as easy to read as they could be. International Financial Reporting Standards are incredibly complicated, turning many financial molehills into mountains.

The challenge faced by the profession is that corporate managers tend to push the rules as far as they possibly can, making the financials look better than they really are. Complicated situations call for complicated rules, with the collateral damage being the retail investor who opens a set of financials and has no idea where to even start...

 

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