State the meaning of Analysis and Interpretation.


Kishore V, SME and ACW at Edumarz

A systematic and critical review of the financial accounts is referred to as analysis and interpretation. 

It not only creates a cause and effect link between the various financial statement elements, but it also shows the financial facts correctly.
The primary goal of Analysis and Interpretation is to convey financial facts in an easily intelligible and self-explanatory way. 

This not only assists accounting users in assessing the financial performance of the organisation over time, but also aids them in decision-making, policy development, and financial planning.


Leave a Reply