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(pdf) The Context and Purpose of Financial Reporting

   

Added on  2020-12-10

19 Pages5235 Words361 Views
FINANCIAL REPORTING

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Context and purpose of financial reporting........................................................................12. Conceptual and regulatory frameworks of financial reporting with their purpose andrequirements...........................................................................................................................33. Identification of key stakeholder of organisation and their need for financial reports......54. Analysis of financial reporting for meeting organisational objectives and growth............75. Explanation of international accounting standards and international financial reportingstandards with their benefits...................................................................................................86. Evaluating financial reporting in organisation with appropriate theories and model......107. Identification of differences in financial reporting across the world and evaluation of factorswhich influence these differences........................................................................................118. Evaluating the degree of compliance with IFRS by different organisations across the world..............................................................................................................................................12CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15

INTRODUCTIONFinancial reporting is the process of disclosing financial results and information to users(external stakeholder) and to management about performance of company in business market.Company usually issued financial reports on quarterly and annual basis with mainly threestatements that is income statement, balance sheet and cash flow statement (Armstrong and et.al.,2016). Therefore, this assessment will be develop to provide better understanding relates tofinancial reporting where context and its purpose will be discussed. Further, explanation is to beprovided on conceptual and regulatory frameworks of financial reporting with its value to meetorganisational objectives.In this report, international accounting standards and international financial reportingstandard will be explained for evaluating their benefits. Further, with appropriate theories betterunderstanding of financial reporting will be provided. Lastly, degree of compliance is also to bediscussed in this report. Chosen reputed accounting firm of UK in this report is Arnold Hill &Co., which deals in providing effective and responsible financial services to clients whichseeking help relates to personal taxation.MAIN BODY1. Context and purpose of financial reportingFinancial reporting is a vital term and also plays an important role in the world ofeconomies. Its main purpose is to provide information which is relevant and useful for theowners and for external stakeholders of the company. Through this accounting, companies willprovide information based on the result of business operations (Abbott and et.al., 2016).Contextof financial reporting is to comply with regulatory frameworks while preparing financialstatement of the company. These are the proper rules and regulations in order to disclose specificinformation relates to company.Key participants in financial reporting includes management, directors, external auditorsand stakeholders where each participant have personal allotted duty in terms of financialreporting. Management is responsible for preparing financial statement and for businessoperations of company. Directors are responsible to oversee methods which has been taken bymanagement to prepare financial statement. 1

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