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Financial Reporting Assignment Sample

   

Added on  2021-02-20

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FINANCIAL-REPORTING

Table of ContentsINTRODUCTION...........................................................................................................................3QUESTIONS...................................................................................................................................31. Context and purpose of financial reporting.............................................................................32. Conceptual, regulatory framework, principles and qualitative characteristics. ....................43. Different types of stakeholders and benefits which they get from financial information.......54. Financial reports for meeting organisational growth and objectives......................................65. Presentation of financial statements........................................................................................76. Interpretation of financial statements of a company which is listed in FTSE 100.................97. Comparison of international accounting standard (IAS) and international financialreporting standard (IFRS).........................................................................................................118. Benefits of IFRS....................................................................................................................129. Degree of compliance with IFRS by organisation across the world.....................................12CONCLUSION .............................................................................................................................13REFERENCES..............................................................................................................................14

INTRODUCTIONThe financial reporting can be defined as a process of disclosure of financial results andother information to the all stakeholders so that they may know about performance of company(Perera and Chand, 2015). Basically, presentation of financial reports is very important becausethere are wide range of financial activities in the businesses. In the absence of presentation offinancial reports it can be difficult for the organisations to analyse the actual financial condition.As well as these financial reports are presented in the end of a particular time period which isknown as accounting period. Herein, the project report a large accountancy firm is selectedwhich is Price water coopers (PWC) company is selected. Its headquarter is in London, UK andcompany deals in providing accountancy, tax and regulatory services. In the project report, term financial-reporting is mentioned along with its purpose as wellas financial statements are prepared as per given information. Apart from it, financial-reportingstandards, models and concepts are described. In the end, difference and importance of financial-reports is also mentioned. QUESTIONS1. Context and purpose of financial reporting.Financial reporting- The term financial-reporting can be defined as a method of presenting thefinancial information of company in the form of financial statements. The key objective ofproducing the financial reports is to informing the stakeholders about financial position ofcompany. Eventually, these reports are prepared with the help of financial statements such asprofit & loss account, balance sheet, cash flow etc. Companies who prepare the financial reportson time, helps them in building strong reputation in the external environment. The financialreports are needed to be prepared at the end of an accounting period (Krishnan and Zhang,2014). For example the PWC company prepares the financial reports on time so that theirexternal stakeholders can aware about their financial position. Along with they advice to theirother client companies to prepare the financial reports timely and as per the standards. Objectives of financial reporting: The financial reports are very important for all who are linkedwith the company's operations and activities. Herein, below some objectives are mentionedbelow:

One of the key objective of financial-reports is to helping in taking important decisionsfor future. This is why because financial-reports include a wide range of financialinformation about company that become a basis for decision-making. Like the abovecompany takes the advantage of reports for futuristic decisions.Along with the financial-reports are useful in providing information about net inflowsand outflows of cash during a particular time period. Like the above respective companyassess their liquidity position with help of financial reports.As well as the financial reports helps in providing detailed information about totalcreditors, debtors, total investment etc. With the help of it, the PWC company can trackthe all financial information.So these are the objectives of financial-reports which are helpful for all kind of companies. 2. Conceptual, regulatory framework, principles and qualitative characteristics. Conceptual and regulatory framework: The international accounting standard board isresponsible for developing the conceptual framework (Wolfson, 2014). Basically, the concept offinancial-reporting is linked to preparation of financial reports that contains various financialstatements. As well as there are a wide range of stakeholders who are involved in the financialactivities of companies so it is essential that financial reports should be as per the accountingstandards and as per the structure. The regulatory frameworks are useful for making forecasting for enhancing the efficiencyand effectiveness of financial statements and principles. Like in the above respective companythey implement all the frameworks in the process of financial report preparing. Key principles: There are various kind of principles of financial reporting and some ofthese are mentioned below:Full disclosure of information- As per this principle, it is necessary for companies todisclose all the information in the financial reports. Eventually, this is important toinclude complete financial information so that stakeholders can aware about financialposition. Consistency- As per this principle, the financial reports should be prepared continuouslyyear by year. This is important to prepare the financial reports on a consistence basis sothat previous financial position can be evaluated.

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