Benefits & Limitations of Published Accounts

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  • Benefits & Limitations of Published Accounts
    • Benefits
      • Produced annually
      • Available for inspection by interested stakeholders when filed with Registrar of Companies
      • Accounts of larger companies are audited by external auditors
        • Audit report included in published accounts
      • Accounting framework ensures that published accounts follow same legal & accounting standards
        • Comparable year-on-year & allows comparison with other companies
    • Limitations
      • Produced annually: fortunes can change significantly in this time
      • PLCs file statutory accounts with RoC within 6 months
        • Accounts are out-of-date
      • Regulatory framework for accounting details requirements for published accounts
        • Companies unlikely to disclose additional info
      • Report on past events: historical
      • No indication of future events
      • Money measurement concept
        • EG quality of management, motivation of workforce, product life cycles ETC
        • means cannot record aspects of company affecting future performance

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