Global Journal of Management and Business Research, A: Administration and Management, Volume 22 Issue 8

© 2022. Maria Silvia Avi. This research/review article is distributed under the terms of the Attribution-NonCommercial- NoDerivatives 4.0 International (CC BY-NC-ND 4.0). You must give appropriate credit to authors and reference this article if parts of the article are reproduced in any manner. Applicable licensing terms are at https://creativecommons.org/licenses/by-nc- nd/4.0/. Global Journal of Management and Business Research: A Administration and Management Volume 22 Issue 8 Version 1.0 Year 2022 Type: Double Blind Peer Reviewed International Research Journal Publisher: Global Journals Online ISSN: 2249-4588 & Print ISSN: 0975-5853 Financial Reporting Destined to External Third Parties as a Tool for Analyzing Credit Worthiness: Usefulness and Limitations. The Italian Case By Maria Silvia Avi Abstract- Financial reporting to external third parties is the primary document based on which, at least in theory, a company's creditworthiness should be assessed. Income, capital, financial and sustainability performance should be understood through a thorough analysis of the financial reporting and sustainability report data. Here, we will focus exclusively on Financial reporting. As we will see, Financial reporting intended for the outside world is characterised by an information gap that tends to preserve the company's right to information and privacy. The main objective of Financial Reporting for External Purposes is to ensure that all Financial Reporting prepared by a nation's companies is consistent in structure and thus comparable. The spread of IAS/IFRS makes it no longer a national but a supranational objective. The significant unsolvable problem is that such financial statements, precisely in order to guarantee the privacy of certain information of a strategic nature or the disclosure of which could be detrimental to company management, are characterised by a lack of information that prevents an indepth analysis of the situation with a global company. Keywords: financial reporting, communication, creditworthiness analysis, static and dynamic analysis, disclosure limits of the financial statements for external parties. GJMBR-A Classification: DDC Code: 332.63230973 LCC Code: HG3751.7 FinancialReportingDestinedtoExternalThirdPartiesasaToolforAnalyzingCreditWorthinessUsefulnessandLimitationsTheItalianCase Strictly as per the compliance and regulations of: