27 chapter vi conclusion any decision taken by the

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CHAPTER VI: CONCLUSION
Any decision taken by the stakeholders is based on a set of correct information obtained about
the company. The financial statement shows the firm's business activity as well as financial
performance to the concerned parties. In a country like Nepal, the use of financial statements by
stakeholders is surely on the rise but it still is limited. While financial reports such as income
statements, cash flow statements, balance sheets can be extremely useful for making the right
investment decision, forecasting the future, and identifying the competency of management they
are fairly limited in Nepal. Financial statements help not only the external stakeholders but to
internal management as they can help highlight areas that provide the best return. For investors,
these statements provide a useful picture allowing them to be up-to-date with the company's
financial decision, and growth or change in strategy.
Through the use of financial statements, stakeholders can get information about the plans of the
company. Companies are required to publish basic financial information in their annual reports
and some companies also include recent choices or actions they have taken which allow
stakeholders to know what to expect from business shortly. Furthermore, financial statements can
reveal information about debt, risk investment, and misuse of funds allowing stakeholders to be
wary of the company.
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