Ideas for the Analyst

In particular when analyzing companies in emerging marketplace countries, the analyst really should meet usually with management to evaluate their economic reporting incentives and accounting policies. Quite a few businesses in emerging industry nations are closely held, and managers may perhaps not have robust incentives for complete and credible disclosure. Accounting policies in some nations might be similar or identical to IAS (or other widely accepted standards), but managers usually have good discretion in how those policies are applied.

Finally, as noted earlier, new communications technologies (which includes the World Wide Internet) is having an incredible impact on all stages of financial research. A lot of companies and nations now have Net internet sites that make it considerably less difficult for any one interested to collect information. Refer towards the section entitled “Information Access” later in this chapter for a discussion of helpful information and facts sources for accounting evaluation.