Report on Users of Financial Statements and their Usefulness

Added on - 06 Jun 2020

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1 X FINANCIALACCOUNTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1Definition................................................................................................................................1Scope......................................................................................................................................1Example..................................................................................................................................1PART 2............................................................................................................................................2Definition................................................................................................................................2Scope......................................................................................................................................3Example..................................................................................................................................3CONCLUSION................................................................................................................................4REFERENCES................................................................................................................................5
INTRODUCTIONTo make the presentation of financial statements of the company's accounts, there arerequirements of preparing and presenting the adequate methods and techniques which arefacilitated by International financial reporting system (IFRS), International accounting standardboard (IASB) etc. In the present report, there will be discussion based on various users offinancial statements and their usefulness.PART 1DefinitionThe role of IASB in presentation of the financial statement is the motive to facilitateauthenticate framework and manner of preparing such data sets (Picker and et.al., 2016).Therefore, in the current scenario, there has been use of such techniques which will be beneficialas the users will rely over the outcomes facilitated by the firm as well as they could make theirprofitable investments in the company.ScopeThe influence of these accounting standards and broads helpful in creating the reliabilityof the financial disclosure. It ensures that there has been use of authenticated data and will bemeasured in the preferable state (Flower, 2016). Therefore, it can be said that influence ofprinciples and format or such institutions will help in validating the outcomes.ExampleThere have been 7 users of such financial information which are being analysed by IASBsuch as:Government:The legal authority in every nation seeks the financial statement of various organisationsin terms of gaining the information relevant with the revenue and gains made by them as well astaxes paid by them. Thus, it helps them in determining the amount of corporate taxes being paidby the organisation.Lenders:1
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