Compare effectiveness of financial information

[silenttearsaries]

Hi everyone,

I am currently studying Master for Finance in the UK and I encountered a difficult essay topic. Could anyone please help me out?

Question: Using the statement of accounts and published performance information for two companies of your choice operating in the same business, compare and discuss the effectiveness of the financial information for a range of users of financial accounts.

At first I thought I would use the ratio to compare the 2 companies but the lecturer said it is just a pure analysis essay without ratio and numbers. I'm quite lost. If you have any idea please help me!

Thank you very much!

 

[geekgirl]

Tidbits you can find in financial disclosures include:
Defaults, Labor negotiations
Business model: you should be able to describe the reason for business growth e.g profitable but cash poor.
Vision of the company- Is management evasive?
Red Flags - late filings with the SEC, change of auditors because of a dispute, resignation of top executives, press releases, litigation exposure
Insider trading
Is industry maturing or falling?
Increasing debt levels with slowing growth