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The Importance Of Financial Reporting in Arnold Hill & Co

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Added on  2021-01-01

The Importance Of Financial Reporting in Arnold Hill & Co

   Added on 2021-01-01

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FINANCIAL REPORTING
The Importance Of Financial Reporting in Arnold Hill & Co_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Analysing context and purpose of financial reporting............................................................12. Explanation on conceptual and regulatory framework of financial reporting with principleto assess its requirement..............................................................................................................23. Identification of key stakeholder of organisation and their need for financial reports...........64. Analysing value of financial reporting for meeting organisational objectives and growth....75. Explanation on international accounting standards and international financial reportingstandards with their benefits........................................................................................................86. Evaluation of financial reporting with appropriate theories and models................................97. Identifying differences in financial reporting across the world with the evaluation ofdifferences.................................................................................................................................108. Evaluating degree of compliance with IFRS by different organisations across the world...11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
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INTRODUCTIONIn order to analyse functioning and day to day operations of multiple departments of theorganisation, financial reporting plays an important role. It is the tool which such multipleoperation through reporting in documents of the company (Kimmel and et.al., 2016). Thus, thisassessment will develop to provide better understanding and purpose of financial reporting.Chosen reputed accounting firm in this report is Arnold Hill & Co. which deals in providingfinancial and legal services to clients. Further, conceptual and regulatory framework of thisaccounting will also to be explained by analysing key stakeholder and their need for financialreporting.Moreover, explanation will also to be provided on international accounting standards andinternational financial reporting standards with its degree of compliance across the nation.Lastly, in this report through models and theories better understanding relates to financialreporting will be developed.MAIN BODY1. Analysing context and purpose of financial reportingFinancial reporting is considered as vital term which plays an important role in the worldof economies. Main purpose of this accounting is to provide information which is relevant anduseful for owners and stakeholders of the organisation. This is the way of showing financialability of company in market among shareholders (Henderson and et.al., 2015). Thus, context ofthis reporting is to comply with regulatory frameworks while preparing financial statements ofthe company. Its governance includes duties and responsible of officer where manager isresponsible for preparing financial statement and business operation of company and director isresponsible to oversee such method which adopted by management for preparing suchstatements.Therefore, it can be said that in order to show efficiency and effectiveness of companyand to capture more investors, entity needs to comply with rules and regulations of regulatoryframeworks. This also helps directors and management to develop strategy in the area whichneeds to improve for obtaining better efficiency of work.Purpose of financial reporting:1
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Goal of financial reporting is to meet expectations of shareholders and legislation in orderto evaluate company's performance. This helps investors and shareholders to make effectivedecision to managing business operations. Three main goals of reporting includes:Meet users' expectation and legislation: users and government always in need ofcompany's financial report so that they will able to analyse operations strategies in orderto reinvest cash in business and to analyse how efficiency business is using its capital.Tracking of cash flow: through financial statement, managers and owners of companywill able to analyse flow of money in entity. This information helps to evaluateperformance of company for recovering its debt and to achieve growth (Narayanaswamy2017).Prediction of future financial position and cash flow: through such statements, managersand directors will able to monitor assets, liabilities and owner equity by which they willable to predict future financial position of the company.2. Explanation on conceptual and regulatory framework of financial reporting with principle toassess its requirement2
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