Financial reporting in global markets :Unit 13 Financial Reporting

Higher Nationals
Assignment Brief – BTEC (RQF)
Higher National Diploma in Business
Student Name DENISA FIRTU ID HE07394
Unit Number and Title Unit 13 Financial Reporting
Academic Year 2019-20 Cohort April 19 Term Block 6
Unit Leader Syed Ahmed Assessor Joseph Olaniyan
Assignment Title Financial reporting in global markets
Issue Date 13.07.2020
Submission Start Date (Formative) 28.09.2020
Submission Summative 10.10.2020
IV Name Seethalakshmy Nagarajan
IV Date 13.07.2020
Learners Declaration: I certify that the work submitted for this unit is my own and the research sources are fully
acknowledged.
Learners Name: DENISA FIRTU Date: 25.09.2020
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Table of Contents
Introduction:...................................................................................................................................3
LO1: Context and purpose of financial reporting:..........................................................................4
Context of financial reporting:....................................................................................................4
Purpose of financial reporting:...................................................................................................5
LO3 Evaluate financial reporting standards and theoretical models and concepts.......................7
IAS and IFRS Benefits:..............................................................................................................7
Models of financial reporting and auditing:................................................................................9
LO4 Evaluate international differences in financial reporting......................................................10
Conclusion:..................................................................................................................................12
References:.................................................................................................................................13
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Introduction:
The purpose of this research study is to analyze the financial reporting by consigning the
context and purpose of the reporting. It will include the analysis of the different objectives for
which financial reporting is made by the businesses. It will include the assessment of the
difference between the IFRS and IAS that regulates the accounting and reporting practices
within the company. In addition to this, the degree to which the businesses are abiding by the
IFRS and other standards will be analyzed in this report.
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LO1: Context and purpose of financial reporting:
Context of financial reporting:
A report that is used for presenting and revealing the information to the stakeholder of the firm
to make them aware of the performance, financial issues, and other accounting information of
the company (Ankarath et al., 2010). A process of preparing the financial accounts and
developing the statements in the report can be stated as the financial reporting that can be
affected the stakeholder such as shareholders, lenders, management, suppliers, government,
and others. The financial reports must include a statement of the financial position, income
statement, change in equity, and cash flow statement along with financial notes to avail detailed
information to the users (Epstein and Jermakowicz, 2010). The report of the businesses must
be prepared by including the document such as risk management report, report of CEO,
Director’s report, and others. The compliance with guidelines mentioned in the laws and
accounting regulations must be followed by the businesses to prepare a valid report.
The regulations for the reporting are the conceptual framework to govern the process of
preparation of the financial statement and preparing the reports. It creates a strong framework
that is used for preparing the financial stamen in the report and it improves the effectiveness in
the reporting (Ankarath et al., 2010). The regulatory framework includes the law of lend,
conceptual framework, and reporting standards. The regulatory frameworks that have to be
abided by the businesses may include the regulations, guidelines, standards, procedures, code
of conduct, and others.
Law of Land is applied like legislation to govern and regulate the firms for the creation of
recording documents for all the kinds of information and for developing the statements to
publish the information. All the firms incorporated and registered are bound for preparing he
reports for the stakeholder while the firms which are not incorporated are not legally bound that
they must create reports for their self-assessment of financial performance (Louwers et al.,
2015).
Along with this, there are some standards in the compliance framework that has to be
considered by organizations while building up and develop financial reports. These standards
include GAAP, IFRS, IAS, and local accounting standards (Van Greuning et al., 2011). The
functioning and rules in each standard and reporting rules are developed by the IASC and other
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