<P> Investors typically are attempting to understand how much cash the company will generate in the future and its rate of profit growth, relative to the amount of capital deployed . Analysts may modify ("recast") the financial statements by adjusting the underlying assumptions to aid in this computation . For example, operating leases (treated like a rental transaction) may be recast as capital leases (indicating ownership), adding assets and liabilities to the balance sheet . This affects the financial statement ratios . </P> <P> Recasting financial statements requires a solid understanding of accounting theory . Once the cash flow in future years is projected, a discount rate or interest rate will be applied to measure the value of the company and its stock or debt .) </P> <P> Financial analysts typically have finance and accounting education at the undergraduate or graduate level . Persons may earn the Chartered Financial Analyst (CFA) designation through a series of challenging examinations . </P>

What is meant by analysis and interpretation in terms of accounting information