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ABSTRACT
In this paper, I discuss the relevancy and reliability of current financial Statements prepared under the historic cost convention and following the accruals concept, investigating the Strengths and weakness of the financial statements in providing "useful" information to the users (Board OF Directors and Management of the Firm ,Shareholders, Employees , Lenders ,Suppliers , Customers , Government's , The public ) With theoretical discussions and detailed analysis to the elements of the basic (3) Statements, Balance Sheet , Profit and Loss , Cash flow , in terms of relevancy and to whom is it relevant , how far can the figures support decision maker, also how far can these information represent reality and if they can be manipulated to give different results which reflects total different picture then reality presenting how reliable it is , also i will discuss the relation between these statements if there is still a need for the current articulation specially between Balance Sheet and P&L statements, I will support my discussion with references and researches and articles from the internet also a real life cases to support my argue .
Introduction .
Board OF Directors and Management of the Firm ,Shareholders ,Employees , Lenders ,Suppliers , Customers are what a firm deals with in the day to day activates , it is a business fact , when we say dealing , in my opinion , this means "Requesting or Demanding " , "Review Request and Approve", "Action", "Feedback on Action" , for example if the management of the firms decided to penetrate the market with new product that needs new expansion that needs new investment a ?request' will be forwarded to the Owners of t ...