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  • This is Michael.

  • Michael is a rookie investor.

  • He received an email with the suggestion to invest into a very attractive business in

  • Vanuatu to secure a share in a growing company.

  • This investment was supposed to be a quick and easy way to make a lot of money.

  • Michael took a chance, got a bank loan, pledged his apartment, andlost all his money.

  • Now he is hiding from creditors and no longer answers phone calls.

  • To make an informed investment decision and assess his risks, Michael should have checked

  • the company's solvency first.

  • Financial statements are the most reliable source for such information.

  • Financial statements show a company's overall financial state, its solvency and performance

  • during a certain period.

  • Financial statements are essential for making important decisions like purchasing capital

  • shares or taking legal action to collect debts.

  • Financial statements usually include information about:

  • Assets, financial liabilities and capital stock

  • Revenues and expenses, profits and losses Cash flow and equity changes

  • Different countries have different requirements concerning compilation, publication and the

  • content of financial statements.

  • All limited liability and public companies in Europe are obliged to compile and publish

  • financial statements, according to the Directive 78/660/EEC from 25 July 1978.

  • Depending on the company's size, number of employees and participation in stock exchange,

  • the amount of information can be different.

  • Furthermore, financial statements compiled by major and public companies must be reviewed

  • by an external auditor.

  • In most offshore jurisdictions companies do not report or publish their financial statements.

  • This is why negotiating risky deals requires extreme caution.

  • Unfortunately, Michael was not aware of any of this.

  • Michael turned to Schmidt & Schmidt and received an in-depth consultation.

  • Now he knows how to properly check a company's financial state and minimize his investment

  • risks.

  • When Michael earns enough money, he will definitely invest it again.

  • Next time he will definitely check the company's financial reports first, with the help from

  • the experts at Schmidt & Schmidt.

  • Schmidt & Schmidt assists in providing financial statements from more than 60 countries of

  • the world.

This is Michael.

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B1 US financial schmidt michael company investment publish

What are financial statements?

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    Teach posted on 2020/07/19
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