essay 2000words Business valuation models utilise the income statement and statement of financial position but these documents in themselves may be...

essay 2000words

Business valuation models utilise the income statement and statement of financial position but these documents in themselves may be misleading.

Required:

Briefly outline how income statements and statements of financial position are utilised in business valuation and critically discuss the usefulness of such statements in business valuation in regard to earnings management and the incomplete reporting of an entity's assets.