Financial Reporting Assignment - M&S Ltd

   

Added on  2020-10-22

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FINANCIAL REPORTING
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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Explaining the content and purpose of financial reporting.....................................................12. Examining the conceptual and regulatory framework with the need and the key principlesand its purpose............................................................................................................................23. Explaining the main stakeholder of the organisation and their benefit from financialinformation..................................................................................................................................44. Explaining the value and importance of the financial reporting in achieving theorganisational growth..................................................................................................................55. The financial statements as per IAS 1....................................................................................5a) Income statement....................................................................................................................5b). statement of equity change....................................................................................................6c) Statement of financial position or Balance sheet....................................................................7d). Explaining the type of information that cash flow presents as compared to incomestatement and balance sheet........................................................................................................76.Interpreting the financial performance of Marks & Spencer plc.............................................77. Explaining the difference between IAS and IFRS..................................................................98. Explaining the benefits of IFRS............................................................................................109. Identifying the various degree of IFRS compliance by organisation across the nations inworld.........................................................................................................................................10CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
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INTRODUCTIONFinancial reporting can be defined as the process which helps in disclosing and providingthe information of the financial results and the financial performance to the management of anorganisation. Financial reporting is concerned as the process of preparation of the financialstatements of the organisation in the specific period of time. These financial statements arecrucial for the stakeholders in evaluating the financial performance and position in a specificperiod of time. As a junior auditor in an organisation the present report is made which will help inunderstanding the importance of financial statements and financial reporting system. The presentreport will help in understanding the important and purpose of preparing financial statementswhich also helps in achieving organisational goals. The importance and different requirement ofconceptual and regulatory framework in accounting. Further, the benefits of financial reportingto the stakeholder is also discuss in file. Present report will also includes different ratios of M&SLtd as per IAS 1. Furthermore, the difference between the regulatory board of accounting will bepresented with their advantages in the financial accounting. MAIN BODY1. Explaining the content and purpose of financial reporting.It can be referred as the process which helps in communicating the financial informationof the company with the help of financial statements. The financial statements of the companyincludes all the financial transaction that can be useful to the management of the company and toexternal users of financial statements (Chen, Zhang and Zhou, 2018). The financial report isessential for the external users such as investors, stakeholder in order to analyse the financialperformance of the company it will assist them in order to make decisions of investing in thecompany or not. It is mandatory for all the company to prepare and publish their financial reportsin a specific amount of time. Financial reports are usually prepared on the quarterly or yearlybasis.Financial reporting content all the information of the financial performance and financialcondition that are essential for the external as well as the stakeholder of the organisation. Thecontent of the financial reporting are as follows:1
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Balance sheet: It is a financial statements that helps in showing the company's total assets andtotal liability at a specific period of time. Balance sheet is the most important financialstatements that helps in showing the company's current financial position of the company.Income statements: It is also an important statements which helps in showing the total revenueand expenses of the organisation in an accounting year (Amiram and et.al., 2018). This reporthelps in getting information about the total sales and other expenditure which shows the netincome of a company.Cash flow statements: it is the report which help in showing the total cash inflow and outflowof a company. This statements helps in knowing the cash flow condition of the company.The purpose of preparing the financial reporting are:To provide the information of the financial condition of the company to its managementand stakeholder so that they can take decision regarding investment in the company.Financial reports essential which helps in getting accurate and timely informationregarding the financial condition (What is Financial Reporting? , 2018). It will help inmaking the planning, budgeting and strategies in order to improve financial performanceof the company.Financial reporting also helps in determining the tax of the particular year.2. Examining the conceptual and regulatory framework with the need and the key principles andits purpose.The accounting conceptual frame working can be defines as the set of objectives andprinciples that has been set up by IASB. The conceptual framework helps in ensuring theuniformity in interpretation and preparation of the financial statements of companies. Theconceptual framework helps in ensuring the detail preparation of financial statements that can beunderstood by the users across the nation (Describe Conceptual Framework of Accounting ,2018). It ensures defining one language of accounting that helps in better comparing andunderstanding of the financial statements of all the companies across nation.The regulatory framework of accounting helps in framing the basic rules for thetreatments of financial transaction in the book of accounts. It helps in ensuring that theaccountant seeks to follow the same set of rules which enables the comparison of the financial2
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