Question

Q2

Identify two (2) pieces of firm-specific information not included in the principal financial statements that you think would be important to someone considering whether to invest in your company. Explain your reasons for believing that this information would be important in making an investment decision.

What does this question mean or asking for? I've been given the entire annual report for Wesfarmers 2018

Answer 1

Apart from the Principal financial statement the below would be firm specific information that would be needed to make any investment decisions

• Management outlook

- How does management look at the company and what are their growth plans in near future, also if there are any changes which management is thinking would be a key factor to decide if one need to invest in the company or not. As the perspective of management is very important in any companies’ growth either in positive way or negative way

• Competitor challenges

- Another important firm specific information that need to considered while making investment decision is our companies growth map compared to our competitor, it very crucial to maintain equilibrium with our competitor as it influences the investor. Hence checking the company positions compared to the competitors is very important for making investment decisions

• Technical Charts

- Investors can also use technical charts and adhering to it can make investment decisions. as techincal charts are used in examining and predicting price movements in the financial markets, by using historical price charts and market statistics