Ensayo

Subjectivity in Financial Statements


This text do not pretend to explain the different types of financial statements, this text pretend to show to the reader how this statements are just a toolon all the process of administrate a business, and the process of studying the financial statements has a subjective part. So we understand this financial statement like photography of the conditionof the business in determinate period of time.

First we need to understand basic in the business then you can take a look of the financial statements of this business. Before this you need to knowwhat is important and what is not. Then you can make your own opinion about the condition of the business in that period of time. All this process implies that you need veridical information, butthis is not a problem, the real problem is the subjective position of the analyst of the financial statements, because this person made his own opinion from his point of view, but maybe it is wrong. Sowe will need to take the best decision and this can be distorted by the subjective point of view of the analyst.

For this reason the correct decisions need the correct persons, this person need tobe prepared to check the financial statements, provides the best conclusions and make the best decisions. This put a subjective factor that is the hardest part in the financial study.

The accountantmust more be the centered and realistic person within a company, since this he must always be faithful to the real results of the same, so an accountant has in his hands the immense responsibility tojustly show clearly and each movement of money that the company has realized. The accountant becomes the key person who connects all the financial activities related to the company, with theadministration of this, is the communication bridge, the translator of as much information, key piece within the operation of each company, becoming a person with great power in its hands, for that reason...