Refer to the following article, "Earnings season: Who will be the winners?", available at the following link:

https://www.theaustralian.com.au/business/wealth/earnings-season-who-will-be-thewinners/news-story/fcfdc7831d3eeeb744a981d45a7c3bd5

questions:

1. Refer to the following extract and explain it in the context of the benefits associated with the voluntary disclosure of information: "In fact, reporting seasons are mostly about changes to forecasts (and perceptions) rather than what companies have achieved". "Within this framework it remains an open question as to what conclusions exactly can be drawn from company financials and updates when macro developments remain all-important, and unpredictability of events and outcomes high. Companies will be reluctant to provide concrete guidance, but those who do will be rewarded".

2. Refer to the following extract and explain it in the context of the motivations for firms to voluntarily disclose bad news: "Likewise, bad news is not necessarily the equivalent of a fatal blow. Investors are definitely looking forward, in many cases to FY22 which is not one but two years away, which means high tolerance for bad news in the short term, as long as it does not impact on FY22 estimates and derived valuations".

3. Refer to the following extract and explain it in the context of the information content of earnings: "As analysts at Morgan Stanley put it: "Despite investor feedback that earnings 'don't matter' amid the COVID-19 crisis, we think FY20 earnings are important: In a world where guidance has been withdrawn, earnings estimates are stale and earnings dispersion is very wide ... Cash flows, margins, capex and balance sheets can now come back to base."