Conclusion
How to read better financial reporting

When it comes to accounting practices, it should be noted that there are a number of major international trends. These trends are as follows.

• Phasing out the concept of historical cost

  Most assets (excluding property, plant and equipment, intangible assets and inventories) are now valued at market price.

• Evolution of the notion of accounting time

  At the very least, everyone agrees that the amounts to be received or paid in the future should be updated. Here's an example of what's at stake when it comes to information. Having a receivable of one million euros on the balance sheet is useful information for financial analysis. Knowing, moreover, that this receivable, repayable in five years' time, yields 5 or 10% interest annually, is...