Where to start with personal finance in Canada?

What are the limitations of the financial statement?

Financial Statement Limitations. Financial statement limitations comprise concerns related to fraudulent practice while recording information, dependency on historical costs, lack of comparability, and non-adjustability to inflation that the analysts cannot overlook.

Why do the financial statements not show the value of the business?

Two reasons why the value of a business is not included in the financial statements are: The financial statements are generally based on the company’s past recorded transactions. The value of the business will more likely be based on the perceived future transactions.

Which information is ignored in the financial statements?

Qualitative Information is Ignored
Only quantitative information are included in the financial statements and are expressed in monetary terms.