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Ali desires to invest in the stock market. He has approached you for some advice as he has no experience in reviewing financial statements or
Ali desires to invest in the stock market. He has approached you for some advice as he has no experience in reviewing financial statements or making investment decisions. Three of the four entities in which he is interested operate in the service industry and hehas commented that their financial statements look quite different from those of the one manufacturing entity that he is considering. Furthermore, he has highlighted a comment made, in the chairman's statement of one of the service entities, that employees are seen as a substantial asset of the business. Discuss why the narrative elements of financial statements are likely to include comments about employees being an asset AND the recognition criteria that prevent employees from being recorded as an asset in the statement of financial position
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