Financial Reporting and Analysis (doc)
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Added on 2020-11-23
Financial Reporting and Analysis (doc)
Added on 2020-11-23
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FINCNCIAL REPORTING
Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................11. Context and purpose of financial reporting.............................................................................12. Analysis of regulatory and conceptual framework and key principles and qualitativecharacteristics..............................................................................................................................23. Main stakeholders of organisation and benefits from financial information..........................34. Importance of financial reporting for meeting entity's growth and objectives.......................35. Formation of financial statements as per IAS 1......................................................................46. Interpretation of last two year's financial statement of company............................................57. Differences between IFRS and IAS........................................................................................68. Benefits of IFRS......................................................................................................................79. Degree of compliance with IFRS by organisation across the world and with in the nation...7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9APPENDIX....................................................................................................................................10Balance sheet.............................................................................................................................10Income statement......................................................................................................................11Cash flow statement..................................................................................................................11
INTRODUCTIONFinancial reporting is a form of summarising the financial information of an organisationin understandable manner. It assist in analysing required areas of improvement and providesolutions with appropriate financial standards (Ball, Jayaraman and Shivakumar, 2012). As ajunior auditor this report is prepared and submit to line manager subject to provide knowledge ofinternational financial reporting standards. Regulatory framework and key purpose andprinciples are characteristics make financial information more reliable. Financial statements areprepared by following accounting standards of IAS 1. There is an interpretation of financialstatements of Tesco for two years communicated to analyse financial performance oforganisation. Essentialness of international financial reporting standards in organisationalcontext. Degree of compliance is introduced with managerial activities and plans andcoordinated with proper examples. MAIN BODY1. Context and purpose of financial reportingFinancial Reporting Financial reporting is a framework used in organisations to evaluate financial informationand positions. As per International Accounting Standard Board (IASB), providing data aboutfinancial position, execution and changes in financial position of a business is the main objectiveof financial reporting. It is beneficial to an extensive users who keep significant interest with inthe organisation.It is a procedure of tracking financial data for better financial control and management.The IASB characterizes that enterprise needs to form financial statements to provide accuratefinancial information to stakeholders of organisation. it summaries consistently to demonstratethe authenticated status of organization subject to improve investor's interest with in theorganization. It is vital for business to introduce fractional data of organization for betterexecution. The information not only remain useful for stakeholders but also assist the managersto analyse financial plans and strategic planningPurpose of financial reporting To execute the clear data in term of profitability and financial position to investors andstakeholders. 1
To provide data to the board of organization for making effective financial plans andstrategies.To give essential data with respect how an association is utilizing and obtaining diverseassets with in organisation (Mohd Nasir and et. al., 2012). To maintain the ethical practice and control upon financial resources of organisation.Its primary aim is to examine the present market esteem and financial status oforganization for successful execution of financial departments of organisation. Main object is to upgrade social welfare by dealing with potential workers, maintainingthe interest of public and adhering government policies. 2. Analysis of regulatory and conceptual framework and key principles and qualitativecharacteristicsConceptual and regulatory frameworkThe conceptual framework incorporates the subjective and quantitative issues. Thisstructure incorporates the requirements of financial related attributes and valuable financial datafor substantial limits. It characterizes estimation for better execution of financial informationand better financial control (Brown, 2011). It provides revelation and ideas to identify requiredcapital support. Tesco adopts conceptual and regulatory framework to controls set provided bythe IASB. These directions are forced as IFRS. Requirement of IFRS is counted as follows: It assists developing the further IFRS and controlling of existing standard by setting outthe fundamental accounting concepts. To enhance accounting controls and standards IFRS werebeing used for better management and control. It empowers business to improve the reportingtactics.The qualitative characteristics that makes financial information more reliableIFRS are extensively acknowledged by organisations subject to manage internationalfinancial reporting standards and rules (Van Greuning, Scott and Terblanche, 2011). Toaccomplish consistency and similarity in terms of providing financial information wereconsidered essential at international level. The International Organization of SecuritiesCommissions (IOSCO) recognize IFRS for posting purposes in this way organizations thatutilization IFRS for arrangement purpose. Fiscal reports for any securities posting for nationswhich are participative individuals from IOSCO.2
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