Object Finance Analysis Forex

The credit to appear (from Latin Creditum-credere: to believe, have confidence, delivering value to this in exchange for a promise of reimbursement in the future) and extend this to the business of industry and commerce brings resulted in a significant increase in commercial activity. At this stage it does not use the financial statements as a means of credit, were formulated for the information of the owners.

In 1890 he presented a paper before the American Bankers Association, for approval as a prerequisite to lending over a certain amount, the presentation of financial statements of the applicant.

But not until the mid-twentieth century that provides analysis of financial statements as an orderly process of knowledge, as a result of generalization of situations in which people and institutions had to decide on companies not directly controlled. (Before the end of the nineteenth century, banks calculate the customer’s creditworthiness.)

Among the events causing widespread situation, we can cite:

1) The separation of ownership and management of business.

2) The development of capital markets and financial institutions (banks, insurance companies and investment funds) that have to develop a permanent task of investment decision in foreign companies.

3) The size growth companies and the dissemination of such holding company organizational structure.

4) The globalization of money markets and capital.

The analysis of the financial statements is developing rapidly, when accounting professionals assume an important place in the world of business.

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