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Financial Reporting Conceptual Framework - PDF

   

Added on  2020-10-22

6 Pages1161 Words367 Views
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Financial Reporting
Financial Reporting Conceptual Framework - PDF_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1TASK 2............................................................................................................................................2CONCLUSION................................................................................................................................3REFRENCES...................................................................................................................................4
Financial Reporting Conceptual Framework - PDF_2

INTRODUCTIONFinancial reporting is the disclosure of financial statements to its all stake holders includinginternal and external about the performance and business operations of a company. These reportsare basically issued quarterly and annual basis (Nobes, 2014). It used by mangers to makeeffective decisions for the company and increase it market growth and stability resulting in theimprovement of its financial position and take competitive advantage over its competitors. Thisreports contains conceptual framework in order to make financial reports and also explains theobjective of why accounting is important and how it is done. It also explains the differentconcepts which are disclosed in financial reports.TASK 1A conceptual framework is considered as an analytical tool with various contexts andvariations which can be applied to various categories of work when overall picture is needed totake necessary decisions to improve the efficiency of a company and increase its financialpositions and stabilise its growth. The main objective of financial reporting is to provideinformation which is used by different users of financial reports. It also provides the informationregarding the cash flow which states the inflows and outflows of cash from the business andhelps the mangers to take necessary decisions and improve the uses of cash in an organisation.Financial reporting is used by organisation to see its uses of cash and other funds and itsoperations and check its progress and growth. Financial statements are made on the basis ofvarious accounting concepts such as going concern this concept states that a company is a neverending separate entity which have a perpetual succession (Dyreng, Mayew and Williams, 2012).According to this concept the company will remain incorporated for more than one year andkeep on going to provide products and services to its customers. The second concept which isused by companies in making in financial statements is accrual basis this concept say that thecompany should record it losses which it may incur in near future and make necessary provisionsfor those losses. Financial reporting includes the various fundamental qualities which states that thecompany should provide relevance information about its financial statements. It should providerelevant information as investors relay on these information before making any investment in acompany. This information is required by various stakeholders who have direct interest in thebusiness. This information provides actual position of a company. Financial reporting includes1
Financial Reporting Conceptual Framework - PDF_3

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