According to Brewer, Garrison, and Noreen (2019), it is easy to see how challenging it is to “accurately predict future financial performance by reviewing the annual report of any publicly traded company” (p. 391).
During this week’s discussion, you will have the opportunity to investigate why actual results may be different from projections. Go to the EDGAR Search Tools for Company Filings (Links to an external site.). Select the most recent annual report of a publicly traded company (make sure to choose one that is different from your peers). Under the Table of Contents on the report, look for Item 1A. Risk Factors and identify reasons that may hinder a company from predicting future financial performance. Share your thoughts on your findings.