Review of method that based on modern theory of securities summation (portfolio)

The main objective of financial reporting is to provide appropriate information to decision making by users of financial information. Financial reporting may be performed in the form of financial statements or other tools of information transfer. Except the information that contained in the financial statements, the information that disclosed out of financial statements are largely based on the forecasts and estimates of management. Most of the information provided by the financial reporting includes predictions about future operations. Therefore, it is expected that because of incomplete estimates of managers about future of trading companies, disclosed information through financial statements and out of it, include common errors. This paper is paid to Review a method that based on modern theory of securities summation (portfolio).

Keywords:

Financial reporting , information managers , securities