Financial Reporting in Global Markets

FINANCIAL REPORTING IN
GLOBAL MARKETS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION 1......................................................................................................................................1
Analyse context of the financial reporting including the regulatory frameworks and
governance of the financial reporting.........................................................................................1
Analyse purpose of FR for meeting organisational objectives, development and growth..........2
SECTION 2......................................................................................................................................4
Task 1..........................................................................................................................................4
Task 2..........................................................................................................................................7
SECTION 3......................................................................................................................................8
Evaluate the key benefits associated with the financial reporting standards..............................8
Examining the theoretical models related with the financial reporting and auditing...............10
Evaluating the key difference and relevance of the financial reporting across varied countries.
...................................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................16
Cash flow statement..................................................................................................................16

INTRODUCTION
Financial reporting (FR) is an effective disclosure of the financial statements and is useful in
providing key associated information to the key stakeholders and the management of the
organization. The financial reporting of the firm helps in evaluating how the organization has
been carrying task for a particular time. FR is useful in providing number of important financial
information which helps the investors, creditors and the creditors to evaluate the key financial
position of company. This study will mainly focus on analysing the key purpose and context of
the financial reporting. This report is useful in examining the theoretical models related with the
financial reporting and auditing. Furthermore, it also evaluates the key benefits associated with
the financial reporting standards. This report mainly focusses on evaluating the key difference
and relevance of the financial reporting across varied countries.
SECTION 1
Analyse context of the financial reporting including the regulatory frameworks and governance
of the financial reporting.
FR includes disclosing the financial information to different stakeholders relating to
financial performance as well as position of organisation over specific period. The stakeholders
are creditors, investors, debt providers, public, government and the government agencies. For
listed public company’s interval of the financial reporting is generally & annual and quarterly. It
is generally considered as final reporting in accounting. Components of the FR includes financial
statements like income statement, balance sheet and the CF statement, notes to statements,
annual and quarterly reports, prospectus and management analysis.
Aim of the FR is of providing information relating to financial performance, position and
the changes in the financial status of organisation which are useful to number of users of
financial information.
Financial frameworks are established by government organisations for assisting IASB in
revising and developing IFRS which are framed over consistent concepts to help the preparers in
developing accounting policies related to the areas not considered by the standards or where
there are choices of the accounting policies and for assisting the parties in understanding and
interpreting IFRS.
Regulatory Frameworks refers to structure that helps the entity in deciding about the
manner of treating items that must be included in financial statements. IAS are set of
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understandable, high quality and the enforceable accounting standard. Regulatory framework
helps to ensure accountant for producing the financial statements that are consistent, comparable
and accurate. Regulatory frameworks ensure that reports are submitted by the management about
financial performance are fair and true that help owners in decision-making. The regulatory
requirements and the governance reduces subjectivity from the accounting. Company have to
prepare financial information following the same set of rules or standards allowing the investors
and owners to access comparable and clear information about financial performance of
organisation.
Reporting requirement as per Companies Act is that if company is registered with either
2000 or more global employees or is having the turnover of £200 million and a balance sheet of
over £2 million at a global level then they require to include statement as part of their Directors
Report. Further all companies are required to prepare a narrative report from the annual reports.
All the companies other than those companies which are defined as small under Companies Act
need to make a strategic report (Company law, 2020). This strategic report lists out all the details
pertaining to operations and working of company.
Governance and regulatory frameworks of financial reporting allows contrast and
comparison of financial performance and condition of the organisations operating in various
countries. Organisations operating in different countries requires to comply with accounting
requirements of every country. The regulatory frameworks related to financial reporting are
moreover similar after introduction of global accounting standards and frameworks that has
reduced the complexity of the accounting reporting.
Regulatory frameworks are essential for preparing FS for reporting the performance of
company. It ensures that users' requirements of the FS have been met with minimum
information. It enables the firms to provide information in relevant economic area is consistent
and comparable both. Reporting frameworks makes the process transparent and increases the
confidence in financial reporting process. Behaviour of the directors and regulators is directed
towards the investors.
Analyse purpose of FR for meeting organisational objectives, development and growth.
FR use fiscal statements for disclosing the financial data indicating the financial
performance and health of the company during specific time period. It provides vital information
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