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FY2021 - Financial Reporting | Individual Report

   

Added on  2020-03-07

5 Pages1539 Words134 Views
Running Head: FINANCIAL REPORTING 1Financial Reporting(Name)(Institutional Affiliation)
FY2021 - Financial Reporting | Individual Report_1
FINANCIAL REPORTING 2Changes and Developments in the Financial Reporting Environment for the Period from 1April 2017 to 31 July 2017.There have been several listed changes that have occurred in the financial reporting sector for the past period. Many reflections have been outlined in regard to the financial environment and some of the changes include the listed below. AuditingAuditing has greatly changed and submitted to a lot of new changes as compared to before.Currently, alot of stress has been put on internal auditing rather than financial reporting. The manner in which such controls have been prepared and recorded has helped in efficiency of internal controls. These new changes have made work easier and reliable by information users.However, there are some difficulties of implementation of this change in the financial environment but many auditors try to make it cost effective and more profitable. (Eckerson, 2009)Digital reportingOver the past years, many investors of various business sectors relied mostly on financial statements purely.However, this has been changing gradually over time and currently, digital reporting of financial positions of companies is being used. Many financial environments have implemented it and access to information by various company investors is done now in a digital way. It is argued that financial statements given to investors to read are not automatically understood by all. (Eckerson, 2009). The statements contain detailed data which may be of no importance to an investor and thus digital reporting puts a person in position of identifying key information they require rather than going through the whole financial statement from the beginning to the end. Specialization of investorsInvestors have specialized in their key area of interest and study only. This development is being used since many think that, studying a whole financial statement would be a waste of resources as well as time. Specialization in their professionalism has been effective and now the majority concentrates only in their fields of interest. Investors get to identify good quality of standards they should provide in a given business entity. (Few, 2011)Length of financial reportsThere has been a progressive change in the size of financial reports printed and issued outby companies. Some time back, the statements were lengthy in nature and this was not effective for users. It is agreed by the majority that, not all financial statement users read the whole large documents to a level of understanding. Even the size would discourage an investor from going through the whole statement up to the end. Arguments on whether to include some information
FY2021 - Financial Reporting | Individual Report_2

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