A study on constructing the fourth financial statement for the performance prediction and value assessment of internet enterprises in the food industry

• Main Author: ZHANG, Jianxin
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2021
• Subjects: Fourth report; Investment; Internet; Finance; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/etd_coll/371; https://ink.library.smu.edu.sg/cgi/viewcontent.cgi?article=1369&context=etd_coll
• Institution: Singapore Management University

For a long time, industry, financial institutions, PE investment funds, and capital market investors have determined the business performance and market value of a company, usually based on the data of the three audited financial tables provided by the company, and further comprehensive analysis will be carried out the evaluation. Due to the limitations of accounting standards, the three financial tables cannot truly reflect all the business conditions of the enterprise. At the same time, the economic stage with traditional manufacturing as the main body and the economic stage with the digital economy as the main body are concerned with the scope, focus, and focus of financial information. The performance requirements are also very different. More and more listed companies use data that is not accurately defined by accounting standards in their financial reports. At the same time, the issuance review committee and exchanges are also increasingly requiring listed companies and prospective listed companies to further disclose non-listed companies in their audits and inquiries financial data. How to ensure the standardization, consistency, measurability, objectivity, and traceability of these data disclosures has become a more realistic requirement. In 2016, at a seminar held by the Shanghai National Accounting Institute, Deloitte China partners put forward and explained the concept of the company’s fourth report, that is, through non-financial data, with users as the core, establishing a platform that covers users, products and platforms The three-dimensional corporate value evaluation system provides deeper insights for corporate management. We believe that the targeted design and construction of the fourth report in the two dimensions of industry and business model will help to sort out the correlation between business data and financial performance to make the third report in advance. Pre-judge the future performances, discover the potential value enhancement space of the company in advance, to make the correct investment decisions. Through investment case studies and questionnaire surveys, this paper demonstrates in detail the importance of constructing the "fourth report" and its effectiveness in the specific investment process.