THE ROLE OF THE STADARTIZED ACCOUNTING INFORMATION IN THE FINANCIAL ANALYSIS OF THE ECONOMIC UNITS

Abstract

There are many reasons for a necessary detailed analysis of financial statements. The financial statements are multi-aim statements. They are prepared to be used by potential groups, state owned agencies and managers. These different groups take decisions which are different from each other; such as, investing (potential shareholder) or lending (potential creditor) or there is also an opportunity to improve the company performance (manager) or if an economic unit is respecting the legal rules of the state (governmental agencies). Each of these decisions requires different information and consequently different analysis. The connections among the units in the income and balance statement or in them both, and the connection among the sums of the following financial statements, are not clear without the financial analysis. The users of the financial statements can be interested to see the progress of a company compared to: a. pre-set standard objectives b. other companies of the same industry c. other investing opportunities The majority of the people who analyse the financial statements, are interested to invest, to borrow, to manage or to take decisions in connection with the respecting of legal rules.