Financial Awareness: Need, Purpose, and Stakeholders

Financial Awareness

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Discuss the need of financial information, its purpose, limitation and the main
stakeholders interested in the financial information...................................................................2
1.2 Identify accounting arrangements and conventions used by the organizations....................4
TASK 2............................................................................................................................................6
2.1 Analyse that how accounting framework and regulations influence the accounting and
financial arrangements................................................................................................................6
2.2 Evaluate the uses of published financial information...........................................................8
2.3. Usage of management accounting practices by an organisation..........................................9
TASK 3..........................................................................................................................................11
3.1 Explain the above mention term and explain their importance as well..............................11
3.2. Trends in published accounting information......................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Financial awareness related to the financial literacy which is essential for a individual to
have in order to perform their task or accomplish the goals or objectives of the company. It
includes the ability as well as capability to handle financial resources and ensure that on personal
or professional they manage in well manager. In context of organization, individual should have
basic knowledge regarding debit & credit of transaction because in the business all the activities
transaction will be based on these terms so people need to aware about some accounting terms.
In order to manage their financial resources and maintain financial records they need to hire
professional or skilled person (Anees-ur-Rehman and et.al., 2018). Those individuals who have
accounting knowledge and experience of managing money and finance for business point of
view. Main aim of this study is to make learner able to understand the financial system, process
and procedure in the organization. It further helps in proving benefits of having financial
awareness in the business which enhance the performance as well as understanding of financial
resources of business.
This report based on the financial awareness and as a financial director of the company
management need to produce report that is beneficial for the organization and for their
employees as well. For the better understanding of this concept, Brightstar company selected for
the further evaluation. It is American based company which provide the financial solutions to
their client and it is established in 1973. This assessment covers the various topics such as need
of financial information, purpose, limitation, main stakeholders and their interest. Accounting
arrangement or connections used by the business, accounting frameworks & regulations, uses of
published financial information and organization used management accounting practices. In
addition, it includes the trends of publishing accounting information.
MAIN BODY
Overview of the company
Brightstar Corp. is an entity of American origin which is a privately held company. It was
founded in 1973 and offer financial services to their clients. It has large number of customers
which include retailers and enterprises. It is a multinational company that has business in more
than 100 countries. The industry in which it operates in is wireless telecommunication. It is one
of the leading companies in this sector which provides services that of good quality.
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Furthermore, there are different subsidiaries of this company which also deal in IT products
around the world such as Beetel Teletech and Brightstar Device Protection. The headquarter of
the entity is located in Florida, United States. The company understand the importance of
management accounting and to make strong managerial decision.
TASK 1
1.1 Discuss the need of financial information, its purpose, limitation and the main stakeholders
interested in the financial information
Financial information are the records of business transaction which related to the
monetary terms. In context of the organization, management need to record each and every
transaction in structured form which can be easily understood by others (Arhin, 2019). Further
discussion regarding need of financial information, its purpose and stakeholders interest are
mentioned below:
Need of the financial information in context of the organizations:
Financial information arranged in well manner and produce financial statement which
include the income statement, balance sheet, cash flow statement etc. These information used to
evaluate for the analysis of internal or external party. Along with this, accounting information
used to evaluate the various aspect which discussed below:
Profitability: Financial information used for the evaluation of overall profitability of the
company. It further help the management to ensure that how much company profitable for the
specific time period and what further actions required for the improvement in their current
position. Financial director of Brightstar company also need the financial information to produce
various financial statement and with the help of profit & loss account they are able to evaluate
that company's performance (Bazley, Bonaparte and Korniotis, 2019). If they are facing loss then
they have to take necessary actions to improve their performance or generate revenue through
changing their operational policies.
Liquidity: With the help of financial information management evaluate that company
have enough liquidity or not to perform their operational activities. It will be possible through
identifying cash position and ensure that they are able to meet their day expenses of the
operations or not. In order to evaluate these situation, company want financial information and
then further develop strategies in order to maintain the enough liquidity in the organization.
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