eceipts Interactive data visualizations (ADVs) are an increasingly popular metho
ID: 2802243 • Letter: E
Question
eceipts Interactive data visualizations (ADVs) are an increasingly popular method companies use to communicate financial information to investors. Assume that your corporate controller asks three questions for you to address: (1) how will financial statement users benefit if we provide them with an IDV of our current financial statement information, (2) if a financial statement user prefers to search for specific values in the financial statements, what type of format presentation should the user select?, and (3) if a financial statement user is interested in viewing net income trends over time, what type of format presentation should the user select? (9 points)Explanation / Answer
1. IDV's (interactive data vizualisation) of current financial information provides the user with much clear understanding of financial numbers, the way it has been derived and the correlations. Also it helps user to identify the key variables say in sales or some portion of costs / taxes / deprecaiation that had it effect on overall PAT of the company.
2.For specific values in financial statement, data tables can be used. Additionally scatter plots / a spider graph can be used for showing realationships and effects.
3.For viewing net income trends over period of time, we can use a line grpah with value on Y axis and time on x axis.
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