Question

Which do you think a shareholder is likely to find more useful- a report on the past (6 marks) or an estimate of the future? Why?

Answer 1

Explanation:

· For the most part, the statement accurately reflects a company's past ... OCI can be found as a line item on a company's balance sheet. ... Important Categories of OCI ... more · Mark-To-Market Losses.

Answer 2

A shareholder is likely to find an estimate of the future more useful than a report on the past.

• A shareholder is an individual who owns the shares of a company. He is basically an owner of a company.
• When a shareholder decides to invest his money in the shares of a certain company, he looks at various metrics and data to find out the best available option to him.
• A report of the past performances of a company is important data. It can guide an investor about how the company has performed historically.
• But, historical performance is not an indication of the future. The future may be a lot more different than the past.
• Estimates of the future are a much better metric to determine if investing in a company is the correct option or not.
• Estimates are also not completely accurate and may differ from reality. But, they still are more useful to a shareholder than a report of past performances.
• But, before investing an individual should take a look at both before coming to any conclusion.

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