Financial Reporting and Its Characteristic : Report

Added on - 21 Jul 2020

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FINANCIAL REPORTING
Table of ContentsIntroduction......................................................................................................................................1Task..................................................................................................................................................11.List of fundamental reporting and its characteristic:................................................................12. Short-term decision making of a firm:....................................................................................2Conclusion.......................................................................................................................................3REFERANCES................................................................................................................................4
IntroductionNowadays, financial reporting is an essential requirement which are needed to becomplied by every organisation in order to render the quality information about the company tothe various stakeholders (Epstein and Jermakowicz, 2010). The investors are relied upon thosefinancial reporting and they made their investment decisions accordingly. These are made as perthe IFRS framework about the common concept which are linked with the proposal of financialstatements for outsiders.Task1.List of fundamental reporting and its characteristic:Financial reporting is the process by which the financial statements are made which couldreveal firm's financial position to administration, investors and the concerned authorities (Nobes,2014). The key objectives of this is to attract the potential investors to invest in the firm afteranalysing financial reporting statements. The potential investors are required to review thesefinancial reporting so that they could get to know about the firmness of the company.International Financial Reporting Standard determine that financial reporting wide objectiveswhich will help out the firm to make the decisions accordingly. Some of them are as follows:The fundamental characteristics of financial reporting:The qualitative characteristics ofreliable financial reporting determine the kinds of information which are most probably be themost useful to the users for framing the decisions related to the reporting firm by way ofinformation in its financial reports (Conceptual Framework for Financial Reporting, 2017). Thequalitative characteristics implement similarly to financial information in common aim financialreports and financial information rendered in other manner. Financial information is beneficialwhen it is useful and represents reliably what it intent to represent. The benefits of financialinformation is improved if it is comparable, reliable, timely and understandable.Fundamental qualitative characteristics:Relevance:This is presumed to be the financial data which is confident of making adispute in the decisions framed by the users. Finance related information is able of establishing adisputes if it has predictive value and confirmatory value of financial related data are inter-linked.1
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