How to interpret the effective information of enterprise financial report

From the perspective of the relationship with enterprises, this paper analyzes the concerns of users of financial reports and finds out the methods and skills to effectively interpret corporate financial reports. Keywords: users of corporate financial reports; Pay attention to the content; Effective information; Method skill 1. Users of financial reports and their concerns Financial reports are documents provided by enterprises that reflect the financial status of enterprises on a specific date and accounting information such as operating results and cash flow in a certain period. When making financial analysis, users of financial statements confirm, compare, study and analyze the data of financial accounting statements, so as to understand and master the financial situation, operating results and cash flow of enterprises, analyze and summarize their operating performance, predict their future development trends, and provide reference and basis for enterprises to make correct decisions. The relationship between users of financial reports and enterprises can be divided into the following categories: 1. Internal direct relations, including shareholders, enterprise managers and employees. 2. External direct relations, including creditors, suppliers and customers. 3. External indirect relations, including competitors, the government and the public. Users with different relationships with enterprises pay different attention to the content and characteristics when analyzing financial reports. For those who are directly related internally, shareholders care about the future profitability and risks of the enterprise, employees care about the future development prospects and salary level of the enterprise, and enterprise managers can be said to care about all aspects of the enterprise. External direct stakeholders pay more attention to the specific content, creditors pay attention to the solvency and profitability of enterprises, suppliers pay attention to the strength of the solvency and profitability of enterprises, and customers pay attention to the sustainable supply capacity and development prospects of enterprises. For external indirect stakeholders, the government always pays attention to some aspects, the public pays attention to some scattered content, and competitors try to dig out any information that is conducive to defeating competitors. In order to interpret financial reports effectively, we can't just confine ourselves to financial accounting statements. Although financial accounting statements are the basis of financial analysis, we should also analyze them from macro factors, industry factors and enterprises' own micro factors. There are many macro factors affecting enterprises, including political factors, economic factors and psychological factors, among which the important economic factors include economic cycle, macro policies (fiscal and monetary policies) and international economic environment. The influence of industry factors is mainly reflected in the type and life cycle of the industry, which can provide horizontal comparison for users of financial reports and help them make correct decisions. Enterprise factor analysis includes enterprise basic quality analysis and financial statement analysis. Basic quality analysis is a qualitative analysis of the potential profitability of an enterprise by defining the most important profit points and the most important risk points of the enterprise, while financial statement analysis is a quantitative analysis and prediction of the financial situation. It is also very important that those who analyze financial statements should meet the following three requirements: 1. General accounting treatment is understood. 2. Make the details clear. 3. The level of accounting theory should be high. As can be seen from the above discussion, a lot of preparatory work needs to be done before analyzing the financial and accounting reports of enterprises. These preparations are in line with whether the financial report can be accurately and effectively analyzed, which can not be ignored. Otherwise, there are problems in the disclosure of enterprise accounting information, which can not be found in time, which will make the analysis of financial accounting reports futile. Third, the specific methods and skills (1) internal direct stakeholders 1. Shareholders are concerned about the future profitability and risks, so when conducting macroeconomic analysis, we must pay attention to the impact of the macroeconomic policies implemented on the industry where the enterprise is located. For example, the policy implementation attitude towards investment in this industry is directly related to the future profitability of enterprises, thus affecting the income and risks of shareholders' investment. It is also important for shareholders to analyze the life cycle of the industry in which the enterprise is located. For example, the same industry will have different investment returns and risks in terms of growth and maturity, so that shareholders can set reasonable expected investment returns for themselves and make reasonable judgments on the quantitative analysis results of financial statements. In addition, when analyzing the income statement, shareholders should pay attention to the source of profits, so as to understand the quality of profits. 2. If employees want to know whether their salary is reasonable, they can compare vertically and horizontally the financial and accounting statements of this enterprise and other enterprises in the same industry for several years, and judge the position of the salary growth and salary level of this enterprise in the same industry. 3. Because enterprise managers have a good understanding of macro factors and industry factors, they should pay more attention to quantitative analysis directly from financial accounting statements to predict the future financial situation of enterprises. Enterprise managers can use financial analysis methods such as comparative analysis, structural analysis, ratio analysis and comprehensive analysis to make reasonable judgments and forecasts on the financial situation, operating results and cash flow of enterprises. (2) External direct stakeholders 1. In order to more accurately understand the solvency of enterprises, creditors should adopt the average solvency of the industry as their expected solvency. At the same time, creditors should also keep abreast of the profitability of enterprises, because only profitability can repay debts. In addition, creditors should pay close attention to the cash flow of enterprises and the profit phenomenon without cash inflow. 2. Suppliers If suppliers care about the payment ability of enterprises, they should pay attention to the cash flow and credit status of enterprises, and also pay attention to the profitability of enterprises to judge whether there is the possibility of continuing cooperation in the future. 3. Customers need to pay attention to the changes in the production capacity of enterprises in a timely manner, which can be obtained from the assets in financial accounting statements and their notes, as well as through media reports and corporate publicity. (2) External indirect stakeholders 1. Competitors, like business managers, have a good understanding of macro factors and industry factors, and should also pay attention to obtaining effective information through the analysis of financial and accounting statements. 2. The government's emphasis on corporate tax payment and environmental protection can be obtained from the financial and accounting reports of enterprises. 3. As a potential investor of an enterprise, the public can decide whether to invest in the enterprise by continuously paying attention to the profitability and risks of the enterprise.