Significance of Financial Reporting for Organization's Growth

Financial Reporting

INTRODUCTION...........................................................................................................................4
1. Purpose and Context of financial reporting in UK..................................................................4
2. Regulatory framework of financial reporting and their key principles...................................5
3. The key stakeholders of an organization and their need for financial reports.........................6
4. Significance of financial reporting for attaining the objectives and growth of the
organization.................................................................................................................................7
5. Explaining the meaning and benefits of IAS and IFRS...........................................................8
6. Evaluating financial reporting in an enterprise by applying theories and models...................9
7.Different financial reporting across the globe and the factors that influence these differences.
.....................................................................................................................................................9
8.Evaluating the compliance rules with the IFRS by different firms worldwide......................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Financial reporting is the record of financial activities of the enterprise. It primarily acts
as the function of the accounting. These financial reports are framed for the internal and the
external users of the organization. Financial reporting fulfils the provision of preparation of the
financial statements and the other information relating to the financial matters. Financial
reporting for companies involves a numbers of activities that facilitate the corporate for
recording of the operating data. The aim of financial analysis is to report fair and reliable
statements of accounting on an annual or quarterly basis. The present study is based on Nexia
international, a leading global accounting firm that provides a portfolio of services like audit, tax,
consulting, accountancy and advisory services to their clients. Furthermore, the report describes
the context, purpose and regulatory framework of financial reporting. The study also includes the
details about the key stakeholders of the company and their interest in accounting information. It
also explains the importance of financial analysis and description about IAS and IFRS.
Evaluation of financial reporting and different reporting standards with compliance rules across
the globe are also analyzed under the study.
TASKS
1. Purpose and Context of financial reporting in UK.
Financial reporting plays an important role in the economies of the world. The primary
purpose of reporting is to facilitate useful and relevant information to the promoters and the
owners of Nexia international, as there present a division between the control and the owners in
the company. It runs as an independent network of accounting firm. As it functions its business
globally the diverse and geographically dispersed stakeholders do not participate in the day to
day management of the Nexia international, so they hire the directors for managing the routine
business and to take decisions on behalf of their shareholders (Abbott and et.al., 2016). The
annual report is received by the owners for summarizing the financial position and performance
of the enterprise. By this the owners can assess the performance of the investments made by
them that adequate returns are generated or not during the period of reporting. For evaluating and
determining the effectiveness of the investments made in the Nexia international, financial

reporting is essential. The directors that are appointed for the firm should operate towards the
best interest of the stakeholders.
Accounting systems need to be implement for the purpose providing information that are
required by the users of the statements or other authorities who has a keen interest in the
financial information (Tomy, 2019). For providing information in an appropriate manner that is
useful to informational requirements of the users, financial reporting system is governed and
regulated. Financial reporting is the framework on the basis of which important financial
decisions are taken.
2. Regulatory framework of financial reporting and their key principles.
A framework that regulates the preparation of the financial statements is essential for
several reasons:
To assure that the minimum and the basic informational requirements of the users of the
accounting statements are fulfilled. To ensure that the information provided to the people in the
economic arena is relevant, consistent and comparable. This arena leads to an increasing growth
in the Multinational Corporation and investment globally. This framework is needed to build the
confidence of users in the process of financial reporting (Poole, Rivat and Berger, 2019). It
regulates behavior of directors and the smooth functioning of the Nexia international towards the
investors. The self owned standards of the financial reporting would not be considered s
sufficient for achieving these aims. In addition to these aims there must be present some
regulation in relation to market based and legal. The national regulatory framework acts as the
regulation for the financial reporting.
There are various components to the regulatory accounting environment. A typical
structure for regulatory framework includes:
 National reporting standards
 National law
 Market regulations
 Exchange rules security