Module 1 - Case

Module 1 - Case

Question 1

The financial information provided by the companies is usually referred to the financial statements of the company. The financial statement of a company is developed for multiple uses for the different stakeholders. Mostly the stakeholders of the financial statement of the company are the shareholders of the company's share, investors who are interested to invest in the company, investors who already have invested in the company, government, financial regulatory authorities and the management of the company.

The financial information provided by the AMD (Advance Micro Devices) could be used for the same reasons that already have discussed in the above paragraph. The financial data share by the Advance Micro Devices assist the investors in many ways. The investors are more concern about the profitability of the company. This information is provided in the financial report of the company. The financial report of the company reflects the progression of the company and the advancement of the company as a business entity. The revenue, expenditure and the profitability of the Advance Micro Devices is presented in the income statement of the company. Whereas the balance sheet of the company represents its assets, liabilities and the owner equity of the company. After 2009, in the next two years the Advance Micro Devices has identified some loss. However, this has been changed in the profits statement made by the company' management in the financial report (Finch, 2010). The Advance Micro Devices financial reports reflects that the investors are advised to avoid more investment in the firm because it needed to be stabilize.

The 10-K form in the financial report also represents the financial risk faced by the company. When considering the investment in the company the investors are mostly concerned with the level of the profitability of ...