Inclusion of qualitative factors in reading and measuring of financial statement: A Study
Kanthraja HM, Dr. Shivashankar KC
All the investors use different financial statements and ways to analyze the reports. But most of them fail to go beyond looking at bottom-line numbers. Doing so, they would not get the true picture of how a company is performing. Just because an expense doesn’t produce revenue doesn’t mean it’s not a good investment. Likewise, just because spending boosts sales doesn’t mean it provides the best return on investment. Analyzing both qualitative (non-financials) and quantitative impacts of activities done using relevant data financial data will help you make better management decisions. The companies should make necessary arrangements to disclose the qualitative data along with quantitative data periodically. So that the investment decision makers get to compare both qualitative and quantitative before taking a decision. The present study is the researcher’s own compilation from various sources of the various Qualitative factors under the three categories of financial, social and corporate governance.