The Implications of Accounting Rules for Modelers

Abstract

In this chapter, I will discuss an aspect of financial modeling that should never be overlooked, and that is the implications to the financial modeler of presenting financial statements. I mentioned earlier in this book that financial statements are heavily relied upon by various audiences and can have a significant influence on decision-making. While there are rules and regulations anywhere that are specifically aimed at the financial modeler, there are some implied responsibilities that if breached can have serious implications for whoever builds the model.