Journal of Accounting and Management Information Systems (JAMIS)

Conceptual aproaches of a companies financial result

7/2004 ,   p52..56


Keywords:   financial result, economic result, financial performance, profit and loss account,

The result obtained from the account of loses and profit has been considered for a long time, the most important indicator of measuring the financial performance of companies. How relevant is this result for answering the variety of questions asked by the users of financial information? Periods of crisis overcome with difficulty and the options of management for different accounting policies lead to a distorted result that can be misleading. The first step in overcoming this situation is extending the analysis on the financial performance of a company beyond the analysis of just the account of loses and profit to an analysis based on the concept of economic result.