Financial Reporting Assignment PDF

FINANACIAL REPORTING

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Describing the content and purpose of financial reporting.....................................................1
2. Examining the conceptual and regulatory framework their requirement, purpose and
principles with the qualitative characteristics.............................................................................2
3. Identifying the importance of financial reporting for the stakeholder in achieving their
objectives.....................................................................................................................................3
4. Importance of financial reporting for meeting organisational objectives and growth............4
5. Presenting financial statement as per IAS 1............................................................................4
d). Explaining the type of information which is provided by cash flow in comparison with
balance sheet and income statement...........................................................................................6
6. Interpretation of the financial performance of Marks and Spencer plc..................................7
7. Explaining the difference between International Accounting Standard(IAS) and
International Financial Reporting standard.................................................................................9
8. Evaluating the benefits of IFRS............................................................................................10
9. Determining the degree of compliances with IFRS across the world and the factor that
affect the compliances...............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Financial reporting is the process of presenting and disclosing the monetary performance
and position of the company within a specific time period. It can be refereed as the process
which formatting and disclosing the final accounts or statements to the various stakeholders of
company. The present report will discuss various aspects of financial reporting in organisation.
The context and purpose of preparing will be outlined. It will demonstrate different conceptual
and regulatory framework of reporting with their qualitative characteristics. Importance of
accounting reports to stakeholders and organisation in achieving business objectives will be
discussed. Calculation of Financial statements of Goodwin plc and financial performance of
Marks and Spencer plc will be presented. A comparison on IFRS and IAS will be discussed
along with the benefit of IFRS and degree of compliances in adopting it..
1. Describing the content and purpose of financial reporting.
It can simply be termed as disclosing the monetary information of the company to the
various stakeholders about the company's financial performance and position in a specific period
of time. Financial reporting includes all the financial transaction of the company and
communicates it in the form of financial statements to the internal management and external
users. Financial statements in crucial as it will help in decision making for internal and external
users, for internal management it is beneficial in making strategies to further improve the
financial performance (financial reporting ,2018). For external users it will assist in making
decisions regarding their investment in company.
The content of financial reporting will includes all the feasibility statements which helps
in communicating all the monetary information regarding company’s financial performance. It is
essential for the management of an organisation to get the summarized information about the
performance and monetary position in order to analyse the effectiveness of business operations
in an year.
Financial reporting is an important part of the company as it helps in attracting more
investors and sales holder to invest in company (Council, 2012). The main purpose of financial
reporting are:
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 To provide accurate and timely information regarding the company's monetary
performance to the management which will assist them in planning, analysing, and
decision making process.
 One of the main purpose of the financial reporting is to assist the external users like
stakeholder, investors and creditors to communicate them regarding monetary position of
company which will assist then in making decisions regarding investing their money
(Chen and et.al., 2011).
 To provide information the ways in which company is using its resources.
 To assist the auditors in getting proper information which helps in their auditing
procedures.
2. Examining the conceptual and regulatory framework their requirement, purpose and principles
with the qualitative characteristics.
In financial reporting, conceptual framework can be dined as the theory of accounting
that has been prepared by the standard board. Conceptual framework helps in dealing with
different financial reporting issues such as the characteristics that helps in making accounting
statement useful. Conceptual framework will help in assist the accountant as to how the
treatment of accounting information has to be reported in the financial statement (Nobe, 2014). It
helps in setting the outlines of the financial statements that assist external users in properly
understand the information. conceptual framework set the guidelines for the company in order to
use the accounting standard such as GAAP principles in treating the financial treatment of
transactions.
Whereas, the regulatory framework of financial reporting helps in setting the rules and
guidelines of preparation the financial statement of under the one set of rules. Regulatory
framework has been developed in order to set one common language of accounting which helps
different organisation and investors to understand the monetary statements in order to compare
and make decisions.
The conceptual and regulatory framework is essential that assist the accountant to prepare
the financial statement that will be reliable, understandable and comparable (Rajgopal and
Venkatachalam, 2011). It is important for the internal as well as to the outside users in their
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