Choose a stance—"financial information should stand alone just like for-profit businesses" or "financial and nonfinancial information...

Choose a stance—"financial information should stand alone just like for-profit businesses" or "financial and nonfinancial information is critical and should be assimilated together"

Expert Solution

Hello Buddy, now the question you ask is a highly subjective one and I don't think there can be any right or wrong about the answer.

My view would be that financial and non-financial information is crictical and should be assimilated together. The reason I say so is because financial statements are prepared so that it's intended users are able to develop a complete view of the workings of the company issuing such finanical information. Even though over the years regulations and laws have been introduced pushing the bar higher for more stricter vigil and disclosures in the financial information, one major portion that escapes the information issued by such companies is the management's intent and further course of actions that they intend to do.

Now yes, one may argue that even such disclosures are required to be made as to what are the management's future plans, however the key lies in what the management does and not what the management says, and there's always difference between the two, as we've always seen.

Hence, both financial as well as non financial information is critical and should always be assimilated together.

I hope the above solution is what you were looking for. For any further queries or doubts in the solution, please feel free to drop a comment. Please do leave a positive feedback, Thank you :)

ekkarill92 answered 1 year ago

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