Answer to Question #261998 in Management for stevo

Question

Select one listed company on Bursa Malaysia and access the annual report of the company for the year ended 2019.

Question 1:

Discuss how ‘feedback value’ and ‘forecast value’ may help users to make better decision.

Question 2:

Provide four examples of accounting information from the annual report to support your discussion.

Answer 1

Question 1

A feedback value is a feature of qualitative in information whereby a person can confirm or correct prior prospects. On the other hand, Forecast value is all about the predicting presentation of the company whereby you can determine if what you have forecasted some years ago occurred. Both of the values are important in decision making as a result you can see the financial performance of the business and you can measure if the business is growing year after year from the time you launched the firm. It is also easier to determine if the assessments are done really affected the routine of the business. It is also easy to know if the outcomes are favorable or not. It is hard for a company to predict the future trend of the business omitting evaluation of its prior activities. For instance, if a certain branch has been forecasted to shut down due to poor performance in its prior years and it eventually closes due to what the financial statements are replicating then you can strongly say that your expectations occurred due to the analysis that assisted you in creating that decision. Being users of monetary proclamations, we are able to predict if the business is failing or growing after noting the improvement of its financial statements from the comparisons from previous years.   

Question 2

The statement of profits or loss and other wide-ranging income. This will enable you to come up with feedback value which helps you to know the areas that need improvements.

Statements of financial position. One is able to see the ending balances of every account and assists folks make choices whether there needs a boost or to just dispose of.

Statement of cash-flows. It brings feedback and forecast values because you will be having an idea of which activities needed money.

Statement of changes in equity. This demonstrates the movement of the equality section of balance street.