Ten hard questions to ask or be asked
| 1 | Are expenses properly booked (e.g. not improperly hidden in the balance sheet)? |
| 2 | Is the breakdown between cost of sales and operating costs correct? |
| 3 | How significant is depreciation? |
| 4 | Is the headline net profit figure the most representative profit figure? |
| 5 | What exceptional and extraordinary items are in the account? What are the implications? |
| 6 | What is the origin of non-trading income? How much is recurring? Why? |
| 7 | Are there any unusual items? Why? What are the implications? |
| 8 | Is there other comprehensive income? Why? What are the implications? |
| 9 | If there are discontinued operations, why? |
| 10 | If there has been a change in accounting policies, why? |
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