If an investor is only looking at the consolidated statements, how would they know if there...
If an investor is only looking at the consolidated statements, how would they know if there is a part of the business that might bring the overall business down?
Homework Answers
If an investor is looking at the consolidated statements, he must also be checking the notes with those statements, disclosures and audit report in which information which is substantial and can have a material impact on the company is disclosed and no investor will do the investment in the company only by looking at the consolidated financial statements. Hence investor is also going to look the separate financials of each division and if there is a part of business which is going to impact the overall business means affecting the going concern assumption it would have been already be noted and disclosed in the audited reports of the company which are going to be analysed by the investor.
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If an investor is only looking at the consolidated statements,
how would they know if there...
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rate
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Why?
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