Through financial statements, an organization’s management communicates the true economic picture of their business to external users of financial reports. However, management has superior information about the underlying economic reality of the implemented accounting policies. Due to noise from estimation errors or a distortion from management’s accounting choices (earnings management), the financial statements might not depict a true and fair view. To enable users of financial statements to make substantive assumptions in forecasting an organization’s future performance, an in-depth examination of the financial statements is essential.
“Successful investing is anticipating the anticipations of others”John Maynard Keynes (05/06/1883 – 21/04/1946), British economist
Van Clamsfield International Ltd. provides a robust sensitivity analysis in order to assess the validity of the financial statements, thereby employing:
After the construction of the above-mentioned framework, Van Clamsfield International Ltd. renders an attestation on the value of an organization and constructs a meaningful forecast of the organization’s future performance. Business valuation analysis and forecast has proven to be useful in several business application contexts:
Van Clamsfield International Ltd. comprehends management’s accounting and disclosure policies and therefore has the ability to extract inside information from public data in order to meet the information needs of investors, who wish to establish an organization’s incumbent and future performance.