The Chief Financial Officer (CFO) of FBN Holdings, Oyewale Ariyibi, shared some insights on the complexities of investment.
He disclosed these insights to journalists at a knowledge sharing session held over the weekend, while speaking on the theme, ‘Understanding Financial Statement for Business Reporting.’
Ariyibi said, “As an investor, investing in the financial market is not gamble or betting, you need a financial adviser for an investment decision.
“You should invest money you don’t need immediate use, invest for medium and long-term, also invest in stocks that have good fundamentals for capital gains.
“A financial statement represents a formal record of the financial activities of an entity; it reflects the financial effects of business transactions and events on an entity.
“It is prepared by following certain logical and consistent accounting principles; and it is usually audited to ensure accuracy for tax, financing, or investing purposes.
“For Management, it is used for planning, controlling and decision-making process, to evaluate the organisational performance and position, so that the necessary measures are taken for improvement.
“For shareholders and investors, a financial statement can be used to analyse the viability and profitability of their investments and to assess the ability of the business/organisation to pay dividends and determine any future course of action.”