financial statement forecasts
1. Reply with at least 200 words, reference and citation.
Analysts are encouraged to develop forecasts that are realistic, objective, and unbiased. Some analysts tend to be optimistic, some conservative. Describe the different risks and incentives that analysts face and how these different risks and incentives lead to different biases when predicting uncertain outcomes. Use specific examples to illustrate your ideas. In replies to peers, discuss whether you agree or disagree with their ideas and justify your stance using the topic resources.
2. Reply with at least 200 words, reference and citation.
Explain how the concepts of additivity and articulation apply to financial statement forecasts and discuss how these concepts can help analysts avoid potential forecast errors. Provide an industry example to support your ideas. In replies to peers, provide additional examples to support or refute the ideas presented by peers.