Income Statement Of Kingfisher

714 Words 3 Pages
Register to read the introduction… If the user is an investor or potential investor, then he/she will be interested in the Income Statement of Kingfisher. Because there is all the information relied that are relevant to make an investment decision to the company. For example, if the profit or sales revenue of kingfisher is at good value or the earning per share is high, then it shows the picture of a suitable performing company to invest his/her money. Again, the investor can compare the performance of kingfisher by evaluating past year’s share prices with the following year. So that he can decide whether to buy/hold/sold the …show more content…
Kingfisher shows its all the financial information in relevant sections of statements and follows the IFRS standard for full disclosure of assets and liabilities and fair value measurement. If it will show a booming profit through designing the accounts by their own wish or if it will focus more on the company’s short term profit and give less focus or a partial projection on the company’s heavy liabilities, then the statements of kingfisher will fail to give a faithful representation of information. That information is not to be called useful for any kind of users.

Some more qualitative characteristics are able to enhance the usefulness of information that is relevant and faithfully represented. This includes, Comparability, Verifiability, Timeliness and Understandability.

If the information can be compared with the similar information about other entity or same entity for another period, then it will be useful. The information of kingfisher financial statement is useful, because it follows the same accounting principles over times consistently. For example, it uses the Straight Line method for depreciation and follows same method for every year. So that it does not affect the profit to go up in one year or down in

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