基于基本面对银行业绩评价外文翻译.doc

外文翻译 Fundamental Analysis for Evaluating Bank Performance Material Source: Bank Accounting Finance ; Oct/Nov2008, Vol. 21 Issue 6, p17-24, 8p, 5 Charts Author: Cal Christian, Jacquelyn Sue Moffitt and Lynn A. Suberly What variables provide the greatest insight into future earnings? Many analysts and investors focus on a single number—net income (or earnings)—to evaluate performance. When investors attempt to forecast the market value of a firm, they frequently rely on earnings. Many institutional investors, analysts and regulators believe earnings are not as relevant as they once were. Due to nonrecurring events, disparities in measuring risk and managements ability to disguise fundamental earnings problems, other measures beyond net income can assist in predicting future firm earnings. Importance of Earnings in Financial Reporting The following statement from the Financial Accounting Standard Boards (FASB) conceptual framework demonstrates the role of earnings in financial reporting: The primary focus of financial reporting is information about an enterprises performance provided by measures of earnings and its components. Investors, creditors, and others who are concerned with assessing the prospects for enterprise net cash inflows are especially interested in that information. Their interest in an enterprises future cash flows leads primarily to an interest in information about its earnings... For financial institutions, financial reporting that relies heavily on net earnings may not give a full picture of performance. The examination of financial statement variables (often referred to as fundamental analysis) may reduce uncertainties for investors. Purpose of Financial Statements FASBs conceptual framework conveys the purpose of financial statements in the following way: Financial reporting should provide information that is useful to present and potential investors and creditors and other [financial statement] users in making rational investment, cre