Financial Assessment of the Commercial Bank of Qata - Example

The paper “Financial Assessment of the Commercial Bank of Qatar” is a thoughtful example of a finance & accounting report. Accounting information available to the public assists shareholders, potential investors, and other financial information consumers to make decisions. The efficiency of most global stock markets depends on information flow from managers or directors to the recipient of such information. Stock market regulators such as SEC, London Stock Exchange, and Qatar Stock Exchange establish disclosure limits that determine the amount of financial reporting availed for public consumption.

Positive and normative accounting theories hold different views concerning the quality of accounting information. It is true that sometimes the accounting information presented in financial statements does not reflect the exact picture of a company as viewed in the stock market. In this paper, we examine the financial information of the Commercial Bank of Qatar (CQB) and assess how they assist shareholders to make decisions. Additionally, we considered the key financial ratios and financial structures of CQB during the fiscal years 2006-2009.

From the analysis, it is evident that CBQ is a stable firm whose financial muscle stretches far beyond Qatar. With increasing asset base and total owners' equity, the company enjoys favorable capital adequacy, loan to capital, ROE, profit margin, and ROA ratios among others. With the rapid expansion of the Qatari economy as the Gulf region economic powerhouse, CBQ is abounded to expand, and its share prices, as well as earnings, will be more lucrative in the future than now. I plan to hold onto my existing shares at the firm and buy extra. 1.0 Quality of the Commercial Bank of Qatar (CBQ) Financial ReportsAs a shareholder of the Commercial Bank of Qatar, the quality of financial reports presented for public use is one of my primary concerns.

Some of the important aspects of financial information that have a bearing on my decisions as on whether to sell, hold or buy shares include relevance, timeliness, comparability, verifiability, understandability, the predictive value of confirmatory value.