Financial-Reporting Regulatory Framework
17 Pages4543 Words98 Views
Added on 2021-02-21
Financial-Reporting Regulatory Framework
Added on 2021-02-21
ShareRelated Documents
FINANCIAL-REPORTING
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................31.Context and purpose of financial reporting..............................................................................32. Conceptual, regulatory framework, key principle and qualitative characteristics..................43. Main stakeholders of an organisation and the benefit they get from financial information..54. Value of financial reporting for meeting organisational objectives and growth.....................65. Preparation of main financial statements on the basis of given information..........................76. Interpretation and communication of financial performance..................................................97. The difference between international Accounting Standards (IAS) and if internationalFinancial Reporting Standards (IFRS)......................................................................................148. Advantage of International financial reporting system.........................................................159. Degree of compliance with international financial-reporting standards...............................15CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17
INTRODUCTIONThe financial reporting may be defined as a method of analysing and spreadinginformation of financial position to external and internal stakeholders of companies (Chen,Zhang and Zhou, 2018). This is necessary for companies to prepare financial reports at the end ofa particular financial year. It is so because by help of these reports, external stakeholders canassess the information about financial condition and on the basis of it make investment. As wellas, the external stakeholders can also take many crucial decisions on the basis of informationprovided under financial reports. For better understanding, a large accountancy firm is selectedthat is Glazers Chartered Accountants. This company is located at London, UK and providesfinancial services to a vital range of clients. Under the project, objective of financial reportingand interpretation of these statements are done. In addition, evaluation of financial reportingstandards, models are detailed along with differences in international financial reporting. .MAIN BODY1.Context and purpose of financialreporting.Financial reporting can be defined as preparation of reports on the basis of analysis offinancial statements in an effective manner. This is essential as with the assistance of this,company’s manager can able to evaluate the actual position in context of finance so that as perthis, they can formulate effective decisions (Saccon and Dima, 2015). Moreover, financialreports consist several statements like balance sheet, income statement and many others. Inaddition to this, it is also related with the regulatory framework. Also, the respective reportingincludes accountabilities as well as duties of accountable individuals of organisation. GlazersChartered Accountants formulate this particular report for assessing their financial position andalso for analysing the field where improvement is required. The main purpose of financialreporting is to aids firm to follow various types of regulations.Financial reporting facilitates detailed data in context of firm's financial position.This helps in assuring that companies are applying same regulations.Also, financial reports are vital for enhancing the capital of the organisation. This is sobecause by help of these reports companies can analyse need of future capital toaccomplish the operations and on the basis of it raise the capital.
Therefore, these are the essential financial reporting purpose. Thus, in Glazers CharteredAccountants this particular reporting plays whole all give roles effectively and efficiently. 2. Conceptual, regulatory framework, key principle and qualitative characteristicsConceptual and Regulatory Framework- Financial reporting is defined as preparationof different types of financial data for making better decision and plans to achieve goal andobjectives of organisation (Setia, Abhayawansa, Joshi and Huynh, 2015). The stakeholders suchas customers, suppliers, government, authorities always keep their eyes on respectiveorganisation financial performance in order to do investment accordingly. The term conceptual is associated with process of preparation of various kind of financialreports on particular time period. Eventually, ideal time to prepare and present financial reportsat end of financial year. Regulatory Framework- This is defined as preparing financial report by using properaccounting principles and standards which assist in getting consistency and accuracy forfinancial statements. Glazers Chartered Accountant Company has to follow proper standards,principles and rules of accounting according to international financial reporting. Principals of financial reporting: Materiality- According to this principle, only material and realistic information shouldbe included in financial statement. Glazers Charted Accountant Company has to includesuch principle in their report for correct and accurate outcomes. It is usually implementedin such situation where accounting effect is less than financial reports. As Full Disclosure- According to this principle, it is essential to provide full and completeinformation in financial statements. In case of any hidden or not disclosed information isincluded in report then it leads problems in decision making. The respective organisationhas to included all relevant information while preparing financial statement to achievegoal and objectives of business. The purpose of this is to include all kind of financialinformation as well as transactions that occurs during a particular time period. Qualitative Characteristics of Financial ReportsIn order to prepare financial reports, there are some characteristics which has to be usedby respective organisation. They are described below:
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Financial Reporting of Qualitative Characteristics - PDFlg...
|18
|5012
|257
Context and Purpose of Financial Reportinglg...
|16
|4111
|287
Financial Reporting Assignment Samplelg...
|15
|4303
|39
Conceptual and Regulatory Frameworklg...
|14
|2951
|137
Financial Reporting Solved Assignment - Doclg...
|15
|4799
|44
FINANCIAL REPORTING INTRODUCTION 3lg...
|18
|3630
|500