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Financial statement - Assignment Sample

   

Added on  2021-06-15

12 Pages2598 Words24 Views
2017

1By student name ProfessorDate: May 10, 2018.1 | P a g e

2ContentsAssessment Part A...........................................................................................3Assessment Part B...............................................................................................................5Assessment Part C...............................................................................................................6Assessment Part D...............................................................................................................7References....................................................................................................................................102 | P a g e

3ASSESSMENT PART A Any information contained in the financial statement helps an investor or other user in theeconomic decision-making process. However not every and any information can be beneficialfor the users of the financial statement. There are few qualities which this financial informationshould possess to satisfy their purpose of helping the users[ CITATION Eli17 \l 1033 ].The following are all qualitative characteristics of financial statements:●Understandability. The information must be presented in such a way that is easy tounderstand. This basically implies that any user who has a basic business sense and has areasonable knowledge in the field of economic activities and finance would have theability to easily comprehend the information present in the financial statements. Theinformation should be clearly presented so that the user can draw conclusions. Theseconclusions would form the very basis of their financial and investing decisions.Additional information should also be given to provide further clarification in intense andcomplicated matters.●Relevance. The information presented in the financial statements must be relevant to theobjectives of the decision makers and must not be vague. It should be kept in mind thatpresenting a sea of data would be of no importance if they don’t lead to meaningfulinferences and conclusions. Only those data can be considered relevant which influencesthe economic decisions of users. ●Reliability. The information will be considered reliable only when the financialstatements as a whole is free from any error or mistake, most importantly the materialones. The data should be free from any bias and should not be misleading. The3 | P a g e

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