CFA CFA General Financial Statement Analysis: answer with “most meaningful information”

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Financial Statement Analysis: answer with “most meaningful information”

  • This topic has 1 reply, 2 voices, and was last updated Jul-21 by Zee Tan.
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      Which of the following disclosures regarding new accounting standards provides the most meaningful information to an analyst?

      1. The impact of adoption is discussed.
      2. The standard will have no material impact.
      3. Management is still evaluating the impact

      ANSWER WITH REASON PLEASE

    • Zee Tan
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      Accepted answer

      The answer would likely be A – an analyst would most likely be concerned with any impact of adoption of new accounting standards, so A would provide the most meaningful information.

      In absence of A, B would provide the next most meaningful info.

      C basically states that the impact is still unknown, so there is no meaningful info.

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