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Financial Management Assignment Report

   

Added on  2020-06-05

7 Pages1347 Words54 Views
Financial Table of Contents
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Question 1........................................................................................................................................1Overview.....................................................................................................................................1Basic objectives of Financial reporting.......................................................................................1Predictive and confirmatory value..............................................................................................1Enhancing qualities.....................................................................................................................2Question 2........................................................................................................................................2Recognition.................................................................................................................................2Measurement:..............................................................................................................................3Disclosure requirement:..............................................................................................................3Going concern concept:...............................................................................................................4Monetary unit:.............................................................................................................................4Periodicity:..................................................................................................................................4Accrual basis:..............................................................................................................................4REFERENCES................................................................................................................................5
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Question 1OverviewInternational Accounting Standard Board (IASB) provides a conceptual framework forFinancial Reporting. This Framework could likewise to face the fundamental question of whyfinancial statements are actually formed (Smets, 2014). The basic answer to that is they are madeto render financial information about reporting entity which is implemented to current andpotential investors, lenders, and other creditors in forming decisions about rendering resources tothe organisation. Financial reporting helps to evaluate the performance of the company by theorganisation in an effective manner. This is the main tool which is used by the organisation inorder to gain the sustainable development.Basic objectives of Financial reportingFinancial reporting is the concept which provides the information about the financialperformance of organisation which is used by the external stakeholders to measure financialposition. Such stakeholders are named as investors, creditors, public, debt providers etc.Objectives of financial conceptProvides information which is further used by the management for planning,benchmarking and decision making.Provides information which is used by the stakeholders to take information baseddecisions for future investment.Helps in determination of the economic resources which are available for organisationIt also helps in ascertainment of the information regarding procurement and use of givenresourcesPredictive and confirmatory valueThese are two important concepts of accounting which is used by the users forimprovement of their decision making. The information which is used in this regarding is said tobe relevant if the users are easily predict the future trends by using of the financial statements.Then it is considered as to be predictive value. On other hand, correcting or conforming theirpast trends helps in ascertainment of conformity value.It has large importance for the users about confirming their prediction and designing oftheir future actions. It helps in achievement of their desired objectives.1
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