Many thanks, Jason, that was a really valuable article and much appreciated.

Just because my expertise is in derivatives/structured products and the accounting impacts of these can be a major component of the statements, even for non financial services companies, I would love to know if you have specific words of wisdom here too.

One thing I would like to add to your article and the string of excellent email responses is the value of looking (and thinking!) carefully about the Risk Factors section in a recent securites prospectus or 10K. The numbers contained in financial statements are, of course, very important but we should never lose sight of the fact that they are a numerical summary of "real" things that are happening to a company in its business. As a manufacturing company simplistic example, it is buying real things, making real things and selling real things: it is not buying, making and selling financial statement numbers, those are a numerical reflection of what it does. In the course of doing these real things, it runs risks -- things related to its core business, as well as those that relate to its financial picture. When we look at the Risk Factors section (above), we see that, out of 30 or so, 27 (e.g.,) are completely generic and applicable to any company (e.g., the risk of competition!), while 3 or so are very specific to that company, what it does and how it does what it does. For example, a pharmaceutical company has a contract with a university to conduct drug research and the continued existence of that contract is a critical risk to the company. Without a pipeline of new patents, it will ultimately die when its existing patents lose their patent protection and generic copies are made. How does the company (could the company) protect itself against that risk? It is well worth spending significant time on Risk Factors, pulling out those that are specific to the company and thinking carefully about their implications.

Thanks again for a great article.

All the best,

Nick.