Financial Reporting : Assignment

Added on - 21 Jul 2020

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FINANCIAL REPORT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P 1 Analysing the financial reporting, regulatory framework as well as governance of them.1P 2 Analysing objectives of financial reporting for Industrial targets, growth and development................................................................................................................................................2M1 Analysing the efficiency of financial reporting in context with requirements ofstakeholders............................................................................................................................3D1 Regulatory framework and governance of financial reporting to stakeholders will becriticised.................................................................................................................................3TASK 2............................................................................................................................................3P 3 Interpretation of profit and loss, cash flow and balance sheets........................................3P4 Calculation and presentation of financial ratios for industrial performance and investment6M 2 Interpretation of Financial ratios and statements in context with better decision making7D 2 Suggesting organisations as per theories and models in context with solving the financialproblem...................................................................................................................................7TASK 3............................................................................................................................................7P 5 Explaining benefits of IAS and IFRS...............................................................................7P 6 Evaluating models of financial reporting and auditing....................................................8M 3 Critically evaluating Financial reporting with Judgements and Conclusion..................9D 3 Criticised evaluation of IFRS and its application in various countries...........................9TASK 4............................................................................................................................................9P 7 Evaluating the financial reporting across different countries...........................................9M 4 Analysing the factors which influence reporting..........................................................10CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONIn the present report, there will be discussion based on the various terms of financialreporting which an organisation can use to gather profitable investments. However, there will beuse of various statements such cash flow, profit and loss as well as balance sheet which in turnhelps stakeholders to know the actual financial position of such industry. Thus, such reportingwill help business professionals in making the favourable decisions as well as gathering fundsfrom investments through investors. In the present era, there will be analysis based on regulatoryframework of financial reporting, IAS and IFRSA which in context with making the fruitfulgovernance of such reporting used by various industries.TASK 1P 1 Analysing the financial reporting, regulatory framework as well as governance of them.Financial reporting consists with making the statements of an organisation whichcontains all the profit and losses, purchase and sale, revenue generation as well as financialposition of an entity. This information is later provided to various stakeholders such as investors,consumers, organisational heads as to make investment decisions. However, such reportingregulates better corporate decisions (Leuz and Wysocki, 2016). It brings transparency in suchreporting techniques which will help organisation in generating favourable numbers ofstakeholders or investors. Thus, with the help of such reporting techniques there will be bettergovernance in industry as the managers or the operating professional will plan new policies andprocedure to lower down costs or expenses. Hence, for better decision making and thegovernance in the organisational environment, professionals will make the comparison on thebasis of various operations held in previous years as well as the performance of business duringsuch years.Regulatory framework:Financial reporting is based on EU framework which containsBanking regulations under CRR and CRD which in turn helps professionals to follow thetemplates issued by IFRS. Hence, the motive of such regulations' is to make a fixed standard offinancial accounting which in respect with gathering better information as well as recording theauthenticated data (Financial Reporting and Governance,2017). However, with the help of IAS,organisations or individual were guided to follow standardise method of preparing such reportswhich is universally imposed by this group. Thus, such reporting techniques will help theorganisation to have the better supervision over preparation of such financial statements as well1
as better liquidity and capital structure which will fruitful in risk controlling as well asfavourable earning. Hence, there will be difference in financial reporting as well as regulatoryframework. Thus, such reporting technique mainly focuses over gathering the number ofinvestors or paying the creditors. On the other side, regulatory targets the bank supervisors whichin turn help the organisation for having the better interest over r loan, interest rates and thecreditability.Governance:Financial reporting indicates better corporate governance which in turnhelps organisation in resolving industrial conflicts as well as increasing efficiency of firm(CORPORATE GOVERNANCE ROLE IN FINANCIAL REPORTING,2017). However, suchreporting facilitate transparency in statements as well as present such information amongorganisational professionals such as Capital providers, managerial directors and supervisors infirm. Hence, such governance of financial reporting consists with various frameworks such asfinancial reporting environment, statement presentation, reporting actual performance, Assetsand liabilities of organisation and the conceptual framework. These are universal standardswhich are fixed for financial statements. However, in context with analysing such statementsthere need to get the financial ratio analysis and group account transactions which in turnbeneficial for industry to analyse the ability of firm in meeting debts.P 2 Analysing objectives of financial reporting for Industrial targets, growth and developmentWith the help of various techniques, regulatory and governance related with developingthe financial reports, will be beneficial for the organisations in having profitable growth ofindustry. Hence, Business will be benefited with having conceptual framework which are basedon various logical methods of doing such work (Bishop, DeZoort and Hermanson, 2016). Therecan be influence of various external parties such as investors of consumers which in turn makethe profitable judgements for organisation. Thus, such framework considered equity capitalmarkets for making better financing in the organisation which is influenced by government rulesand regulations, bankruptcy, court decisions, income tax as well as legislations. There will beseveral objectives of financial reporting such as:Presenting disclosure of such financial statements among managerial heads of theorganisation in context with having better planning, judgements as well as fruitfuldecision making.2
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