Financial Reporting Report 2022

Running head: FINANCIAL REPORTING
Financial Reporting
Name of the Student
Name of the University
Author’s Note

1FINANCIAL REPORTING
Table of Contents
1. Rationale for the process used for estimating $ 180000 uncollectible accounting......................2
2. Impact of misstatement of funds on income statement and balance sheet..................................2
3. Ethical dilemma and ethical consideration faced along with considering the options and
responsibilities.................................................................................................................................3
4. Identifying key internal and external stakeholders along with the negative impacts for not
following the instructions................................................................................................................3
5. Potential consequences for not complying instruction of supervisor and negative impact.........4

2FINANCIAL REPORTING
1. Rationale for the process used for estimating $ 180000 uncollectible accounting
Uncollectable account is the amount of receivables that has no chance of being paid to the
company. This is the amount that is act as loss to the company as the debtors is unable to pay the
amount to the company. The estimated balance for the allowance is around $ 180000 which
points out the ageing accounts as the period is over which mainly varies between 30 days to 90
days1. As the amount included in the account exceeds the allocated time period, so the amount
would be forwarded to the process of uncollectible accounting. This can be the sum that is act as
misfortune to the company as the indebted individuals is incapable to pay the sum to the
company. Uncollectable account is the sum of receivables that has no chance of being paid to the
company.
2. Impact of misstatement of funds on income statement and balance sheet
Financial statement are the main statement of an organisation as it consist of different areas
where it covers. Financial statement mainly consist of income statement, balance sheet and cash
flow statement which points different aspects of the company. Misstatement of funds impacts
their overall nature and thus provides incorrect information to the management of the company.
Misstatement of funds in income statement would show incorrect amount of profit or loss that
has been earned by the company at the end of the financial year2. Balance sheet would be affect
by wrong financial position which might affect the overall business. Moreover, the flow of cash
might get altered and the company might face financial loss at the end of financial year due to
misstatement of funds. Misquote of reserves impacts their generally nature and hence gives off
1 Riccardi, William N. Auditing: A Journal of Practice & Theory. Nov2019, Vol. 38 Issue 4,
p201-224. 24p. 9 Charts. DOI: 10.2308/ajpt-52406
2 Hong, Hyun A.; Kim, Yongtae; Lobo, Gerald J. Journal of Accounting, Auditing &
Finance. Apr2019, Vol. 34 Issue 2, p258-283.

3FINANCIAL REPORTING
base data to the administration of the company. Adjust sheet would be influence by off-base
monetary position which might influence the in general commerce.
3. Ethical dilemma and ethical consideration faced along with considering the options and
responsibilities
Ethical dilemma that are faced includes the bad work place culture and conflicting goals as the
controller has asked for income for the company as the bottom line is too low. The allowance for
uncollectible accounts has been changed as the amount has increased and those have to be
considered as ethical dilemma. Ethical considerations are the factors that are required to be
followed for a successful process in an ethical way3. The options and responsibilities is to be
considered as it points out the ethical ways for performing tasks that has already been allocated.
4. Identifying key internal and external stakeholders along with the negative impacts for
not following the instructions
Internal stakeholders mainly consist of managers, employees and owners of the company and
they are mainly responsible for looking for the factors that affects the overall profitability of the
company. Internal members also follows the instruction which would be implemented within the
overall business activities and that would enhances its performance4. External stakeholders are
not directly involved with the organisations but care about the performance of the company. It
mainly includes the government, creditors, suppliers and customers. The negative impact might
be the financial loss that would be faced by the company after a certain period of time.
3 Bananuka, Juma; Night, Sadress; Ngoma, Muhammed; Najjemba, Grace Muganga. Journal of
Economics, Finance & Administrative Science.Nov2019, Vol. 24 Issue 48, p266-287. 22p. DOI:
10.1108/JEFAS-11-2018-0120.
4 PERJUCI, Edona; ISMAJLI, Hysen; BUNJAKU, Ardiana. Audit Financiar. 2019, Vol. 17
Issue 153, p124-133. 10p. DOI: 10.20869/AUDITF/2019/153/005

4FINANCIAL REPORTING
5. Potential consequences for not complying instruction of supervisor and negative impact
Complying the instruction would help the supervisor for easy process and some of the employees
does not follow the instructions. This mainly led to some of the consequences along with some
of the negative impact on the organisation. The most important point is that the company might
face lack in their profitability which would hamper their overall business activities. The activities
that are associated with the business might get affected which restricts in performing the other
activities that would be performed by the company.

5FINANCIAL REPORTING
References
Riccardi, William N. Auditing: A Journal of Practice & Theory. Nov2019, Vol. 38 Issue 4,
p201-224. 24p. 9 Charts. DOI: 10.2308/ajpt-52406
Hong, Hyun A.; Kim, Yongtae; Lobo, Gerald J. Journal of Accounting, Auditing &
Finance. Apr2019, Vol. 34 Issue 2, p258-283.
Bananuka, Juma; Night, Sadress; Ngoma, Muhammed; Najjemba, Grace Muganga. Journal of
Economics, Finance & Administrative Science.Nov2019, Vol. 24 Issue 48, p266-287. 22p. DOI:
10.1108/JEFAS-11-2018-0120.
PERJUCI, Edona; ISMAJLI, Hysen; BUNJAKU, Ardiana. Audit Financiar. 2019, Vol. 17 Issue
153, p124-133. 10p. DOI: 10.20869/AUDITF/2019/153/005