Lack of Consistency, Comparability, And Transparency In Financial Reporting Can Distort Analysis

Few investors will buy a company’s debt or equity without at least a cursory look at its income statement, balance sheet, statement of cash flows, accompanying notes, and the management discussion and analysis. Standard & Poor’s Rating Services believes financial statements too often lack the consistency, comparability, and transparency investors and other financial statement users need for analysis. The reports upon which global financial statement users depend are an amalgam of accounting standards, regulatory mandates, and management discretion, which can result in an unpredictable mix of information–or lack thereof–that makes analyzing financial statements more complicated than we believe necessary. Without an understanding of what financial metrics actually measure, how different industries or comparable companies in the same industry might use those numbers, and how disparate standards can change the disclosures afforded the public, investors risk misunderstanding a company’s financial strength and misallocating their capital.

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The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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