Page 356 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 19

When performing analysis of financial data, the following must be considered before
forming any conclusions:

 Who is the user? Each user will have a different
objective for analysis.

 What industry/market is the Acceptable results can be industry
entity operating in? specific e.g. current ratios.

 What sources of data are FS from one year to next, FS for 2
available? separate companies, industry
averages, operating segments.

 Any other information required Other FS, further detail re financing
for conclusions? terms, accounting policy details,
breakdown of aggregated FS figures.

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