Financial Accounting of Lloyd Banking Group Ltd
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Added on 2020-07-22
Financial Accounting of Lloyd Banking Group Ltd
Added on 2020-07-22
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Financial Reporting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Q1. Financial concept and its use ..........................................................................................1Q2. Evaluation of reporting design........................................................................................2Q3. Determination of stakeholders and its advantage in an organisation ............................3Q4. Value of financial reporting for attaining organisational objectives...............................4Q5. Crucial financial statements.............................................................................................5a) Income statement................................................................................................................5(b) Change in equity statements.............................................................................................5(c) Financial position statement..............................................................................................6Q6. Interpretation of two years financial statements of Lloyd banking group 2016-15........7Q7. Comparison among IFRS and IAS................................................................................10Q8. Advantage of IFRS........................................................................................................10Q9. Determine degrees of compliance with relation of IFRS..............................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................13
INTRODUCTIONFinancial reporting is a crucial aspect of corporate governance. It is essential for companyto attain its long term objectives by using information that is collected from daily operations. It isa primary element that can help investors or other outside stakeholders to make valuable decisionon the basis of financial reports that are being prepared by company (Mackenzie and et. al.,2012). It consists of disclosure of accounting data to management which is performed during thetime. They are mainly issued at quarterly and yearly basis. This particular report provides necessary information about the purpose of financialreporting and evaluation of framework. Role of stakeholders and their advantages to anorganisation are discussedin this report. Understanding of financial statements in order toanalyse the performance of Lloyd banking group Ltd as well as role of IFRS and benefits inreporting are studied here.Q1. Financial concept and its use In any business organisation, whether related to service or manufacturing, there aremultiple departments which operate everyday in order to attain organisation’s objectives. Thefunctioning of all these departments is either dependent or independent, but at closing of theyear, they are connected together as basic threat for accounting and finance administration. Theaccounting aspects of them are recorded and informed to different stakeholders. There are mainlytwo types of reporting such as for stakeholder and management accounting for internaldepartment of an organisation (Rensburg and Botha, 2014). With the help of these two effectivepart of accounting system. In case of listed company's frequency of financial report relies onyearly performance of company. It consists of:The financial statements: It consists of various records such as balance sheet, profit andloss account and statement of stock holders equity.The reporting of notes is required to make financial statements. Quarterly and annual reporting of listed company.Objectives of financial reporting:The purpose of reporting is to provide data regarding financial stability, performance andall those changes essential for financial position of an organisation. It is use for making crucialdecision-making. It will serves mainly two primary objectives. Initially, it will be helpful for1
management to get involve in effective decision-making that are primary concern withobjectives and overall planning of an organisation. The information disclosed in the report can behelpful for managers to determine strengths and weaknesses of company as well as currentposition in the market. Secondly, financial reporting is useful to get information about thefinancial health and events of company that are presented in front of investors as well as otherconcern parties (Flower, 2016).It provides essential information to the owners of Lloyd banking group which is utilisedfor the purpose of planning, setting benchmark and valuable decision-making.Delivering information to external parties and public at a wide scale so that some specificaspects can be analyse in effective manner.It will help company to provide necessary information about allocation of economicresources of an organisation. Data records about roles and responsibilities of managers in supporting ethical operationare analyse by the department. Q2. Evaluation of reporting designThe list of companies is growing at a faster rate. Business and other legal bodies arefollowing reporting systems of an organisation in order to make sustainable environment. Anapplicable financial reporting framework is a set of rules are use as guidelines in preparation ofannual reports. This is use in typically important types of business organisation and where it islocated as per accounting laws. The nature of entity and objectives of financial statements isprepare by using some rule and regulation (Klassen and Laplante, 2012). It is adopted bymanagement where appropriate charges with laws are apply in order to remove any unethicalpractices in recording financial transactions. There are certain examples of using financialreporting frameworks as these are based on GAAP principles and IFRS. Accountants arefollowing these particular rules to record transactions in the books of accounts. There are mainlytwo types of reporting framework such as:Conceptual: It deals with the fundamental reporting problems arises in an organisation.Some of the issues are related with the objectives, users of financial statements as well ascharacteristics that are helpful in making accounting information effective. It provides an ideathat leads to the formulation of a consistent set of standards and obligations. Basically, in2
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