Business Management Reports

Qualifi level 4 Diploma in Business
Management

Contents
1.0 INTRODUCTION...........................................................................................................................2
Task 1...............................................................................................................................................3
1.1 Discuss the need for financial information, its purpose, limitations and the main stakeholders
interested in the information..............................................................................................................3
1.1.1 Need for financial information..................................................................................................3
1.1.2 Purpose of financial information...............................................................................................3
1.1.3 Limitations of Financial Information........................................................................................4
1.1.4 Stakeholders interested in the information................................................................................4
Task 1.2. Identify accounting arrangements and conventions used by organisations.........................4
Accounting arrangements..................................................................................................................4
Conventions.......................................................................................................................................5
Task 2...............................................................................................................................................7
2.1 Explain how accounting frameworks and regulation influence accounting and financial
arrangements.....................................................................................................................................7
Accounting frameworks and regulations...........................................................................................7
Influences:.........................................................................................................................................7
2.2: Explain the uses of published financial information...................................................................8
2.3: Explain how an organisation uses management accounting practices.......................................10
Accounting Practices.......................................................................................................................10
TASK 3...........................................................................................................................................11
3.1: Explain the main items commented on and explain their importance.......................................11
3.2: Identify trends in published accounting information.................................................................12
RECOMMENDATIONS..............................................................................................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

1.0 INTRODUCTION
Finance can be defined as the way of managing money and transactions. While Financial
awareness is observed on the 14th of August, it refers to the understanding of finance and
prepare everyone for financial stability and need for information about a business. For a
corporate organization, a financial information is extremely valuable and important. Financial
information is considered for diverse objectives, restrictions, and stakeholders. It entails
gathering and evaluating financial data for the purpose of running a firm in the right way and
making sound financial decisions. As the company's financial director, I have created a report
to provide financial awareness information to the company's chief executive officer.
Financial information is addressed for a variety of objectives, limits, needs, and stakeholders.
This report also identifies the accounting standards utilized by this firm, as well as many
accounting conventions. The major goal of this report is to assist GM Punjabi Ltd with the
financial planning by using the financial data. This report examines the financial or
accounting data in order to comprehend the significance of each of these statements.

Task 1
1.1 Discuss the need for financial information, its purpose, limitations and the
main stakeholders interested in the information.
Financial information: Financial information is a detailed record of an organization's financial
activities. This comprises a variety of papers such as an income statement, cash flow
statement, and balance sheet. This data shows the financial data of an organization's assets
and liabilities, as well as its revenue and expenses.
My current employment as a finance manager at GM Punjabi & Co Ltd, is chosen for this
project report to create a knowledge of the relevance of financial information and financial
awareness. The company is a well-established trading company in terms of home appliances,
tools and equipment. Financial information is considered for a variety of purposes,
limitations, demands, and stakeholders and they are stated above:
1.1.1 Need for financial information
Decision Making - Financial information is made up of facts and data that are gathered,
processed, stored, and used for various reasons in the future. That information is needed to
perform various strategies and decision-making. As a finance manager, I understand that the
company’s profit is based on sales and financial information of total sales is needed to create
budgets for general and administrative spending, capital expenditures, profit planning and
operational costs. Thus, management may use this information to assess the estimated return
on capital expenditures.
Tax Liability - Financial information must be collected and analysed since it aids in
determining the tax liability that must be paid by the firm. The company is one of the largest
and fastest-growing trade companies, with huge profits every year. Therefore, in order to
comply with all legislative requirements, they must calculate their tax due using their
financial data.
Financial Transparency- Financial data is crucial for the company since it ensures financial
transparency. Even the smallest units or values have a significant influence on the balance
sheet, and the accuracy of these statements ensures trustworthy outputs and consequences.
Financial transparency is necessary to defend the interests of other shareholders.
1.1.2 Purpose of financial information
The financial statements' main purpose is to provide information about an organization's
results of operations, financial situation, and cash flows. GM Punjabi prepares financial
information, such as financial statements for a variety of reasons. They are listed below.
Financial Analysis- To analyse an organization's financial situation, financial information
such as statements and accounts is created. This information may be used to assess debt-
paying capabilities, cashflow, and other factors. For example, users may view and
comprehend the assets, liabilities, and equity of a business, in the financial statements. It will
be useful in assessing if a company is making proper use of its financial resources and
whether or not its goals have been met.