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Financial Reporting - Assignment Sample

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Added on  2020-11-12

Financial Reporting - Assignment Sample

   Added on 2020-11-12

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FINANCIAL REPORTING
Financial Reporting - Assignment Sample_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Critical assessment of every concept/assumptions listed under fundamental and enhancingqualitative characteristics............................................................................................................1TASK 2............................................................................................................................................2Illustrating examples about concept and assumptions might be applied to financial statementsthat give quality information to stakeholders..............................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................5
Financial Reporting - Assignment Sample_2
INTRODUCTIONFinancial reporting is known as disclosure of financial outcome along with relatedinformation to external stakeholders and management that how business is performing in specificduration. The present report will discuss critical assessment of every concept under fundamentaland enhancing qualitative characteristics. Simultaneously, this would illustrate their applicationto financial statements for providing quality information to stakeholders.TASK 1Critical assessment of every concept/assumptions listed under fundamental and enhancingqualitative characteristicsThe IASB's conceptual framework develops and revises IFRS on basis of consistentconcepts, to help the preparers with context of developing consistent policies of accountingwhich are not covered through standard or with choice of accounting policy, and assisting everyparty for interpreting and understanding IFRS. The main objective of financial reporting is toprovide information useful in undertaking credit and investment decisions, assessing usefulinformation with prospects of cash flow and helps for present and potential investors to assesbusiness ability for generating net cash inflow (Chychyla, Leone and Minutti-Meza, 2019). Onbasis of fundamental concepts of accounting are stated as recognition, measurement andpresentation of financial statements. Recognition is known as process to incorporate items inincome statement or balance sheet which is probable that future economic benefit is linked withitem which flows from or to entity and cost of value of item could be measured with reliability.Measurement comprises assigning monetary amounts at which financial statements are reportedand recognised (IASB publishes revised Conceptual Framework, 2019). Presentation of financialstatements signifies substance of economic phenomenon rather than showing in legal aspect.Fundamental qualityRelevance: The relevant financial information is capable for creating variation in decisions madethrough users as it represents best understanding about predictive and confirmatory value whichare interrelated. Predictive value provides helps to users for anticipate and predict futureoutcomes and confirmatory value enables users for confirming and checking earlier predictionsor evaluations.Faithful representation: It has requirement of substance of transactions which directly differsthrough legal form and then these transactions must be accountant as per substance and1
Financial Reporting - Assignment Sample_3

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