Page 5 - FINANCE PART 2 - 7. Analysis And Interpretation Of Financial And Non-financial Information

Overview Analysis And Interpretation Of Financial And Non-financial Information

• The first step towards a better understanding of this

learning unit is comprehension of the objective of financial

analysis and interpretation.

• This objective is to supply the users of an enterprise’s

financial and non-financial information with meaningful

information, to equip them to make informed decisions.

• Users include all stakeholders of the entity, such as the

entity’s own management, investors, financiers, suppliers,

employees, consumers, as well as the government and

general public.

• Decisions made by these users include economic decisions

(the reason for the traditional focus on the analysis of

financial information), but also decisions linked to

sustainability, environmental, social and governance factors
(one of the reasons why, these days, non-financial

information is starting to assume more weight).

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