Dear Esteem members, Do you think the financial statements although audited are getting alienated from the actual operations of the company? Do you think more information with regards to the operations of the company. Like say for example in the case of a manufacturing company: The Capacities Installed/Utilised costs incurred sales generated and profits earned actual inventory and its valuation (both quantity and value wise) Physical assets cost centre wise depreciation charged. Key input cost analysis and variance analysis with the standards set by the company that shows the efficiency and effectiveness of cost and waste management. and the reconciliation of all of the above with the financial statements of a company along with key financial and quantitative ratios. In India we have a cost audit report which is certified by a qualified cost accountant which provides all of the above details but the same is not a part of the financial statements but all of the above data is provided by the cost accountant for key industries to the central government for which the cost audit has been ordered by the central government. Do you think cost accountants audit report with all the above details and information would be ideal to relate the profits as shown by the company with the operations of that company and such information should also be provided to the investors /shareholders /analysts by way of its inclusion in the financial statements? regards, Dev