International Financial Reporting PDF
Added on 2020-10-04
17 Pages4116 Words358 Views
INTERNATIONALFINANCIAL REPORTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1MAIN BODY ..................................................................................................................................11. Context and Purpose of Financial reporting ..........................................................................12. The conceptual and regulatory framework of an organisation and qualitative characteristicsof financial reporting...................................................................................................................23. The main staekholders of an organisation and benfits of providing them fiancialinformation..................................................................................................................................34. The value of financial reporting for meeting organisational obejtives and growth ...............55. Main fiancial statemenst as per IAS 1.....................................................................................56. Financial statements of Marks and Spencer ..........................................................................87. Difference between IFRS and IAS ......................................................................................108. The benefits of international financial reporting standards..................................................109. The varying degree of compliance with IFRS by organisations and factors in a nation thatmay impact compliance.............................................................................................................11CONCLUSION .............................................................................................................................12.......................................................................................................................................................12REFERENCES..............................................................................................................................13APPENDIX....................................................................................................................................15
INTRODUCTIONFinancial reporting is a method to present the financial information in the reportingformat. Financial reporting helps the firm in identifying the various operations performed b y theorganisation. This information helps in improving the future performance and profitability of thefirm. Financial reporting include profit and loss statements, balance sheet , statements of equityand cash flow statements. This study will include the context and purpose of financial reporting.Furthermore , it will include the conceptual and regulatory framework and the qualitativecharacteristics required to make the financial information reliable. Moreover, it will include themain stakeholders of the organisation and the benefit of providing them financial information.This assignment will provide understanding of the financial statements to determine the variousratios of marks and Spencer. This assignment will include difference between internationalaccounting standards and International financial reporting standard. Also, it will provideunderstanding of the factors that impact on compliance with IFRS.MAIN BODY 1. Context and Purpose of Financial reporting The main purpose of financial reporting is to provide useful and reliable information tothe management of the organisation in order to assist them in making effective decision for theorganisation. Financial reporting is used by organisation and various stakeholders to determinerthe performance and profitability of the firm inn order to compare the performance with itscompetitors and identify the trends of performance of the firm (Alexander, Britton and Jorissen,2014). Also , it helps the firm in determining the cash requirement of the organisation whichhelps them in performing the future activities of the organisation. With the helps of financialreporting the obligation of the company which they have to pay can be determined. The purpose of preparing financial reporting is to serve the information to themanagement and various stakeholders to provide them information about the various activities ofthe company (Chen and Li, 2015). It assists management in identifying the deviations due towhich the goals of the organisation are not achieved which helps them in formulating variousstrategies and planning to improve the performance. The information contained in the financialreporting provide understanding about the liquidity position of the firm and also about theprofitability of the firm and factors which impact on the profitability of the organisation. It helpsthe firm in reducing its expenses and increasing the sources of incomes.1
Financial information is very useful for the firm in order to determine its growth andachieve the business objectives. On the basis of financial reporting firm is able to preparebudgets for future which helps in achieving the performance objective of organisation. Financialinformation provide information to investors and lenders about the performance and profitabilityof the organisation which helps them in making decision about investing their money in the firm(Christiaens and et.al., 2015). This reports consist of profit and loss statements, balance sheet ,and cash flow statements. Profit and loss statements contains the information regarding theincomes and expenses of the firm. Balance sheet provide information about the assets andliabilities of organisation. Cash flow contains the information of the cash inflows and outflowsfor the period.2. The conceptual and regulatory framework of an organisation and qualitative characteristics offinancial reportingThe conceptual framework of financial reporting provide the objectives of generalpurpose of financial reporting. The conceptual framework helps in formulating accountingpolicies when there are no IFRS standards applicable to the particular transaction. It alsoprovides qualitative characteristics which is required to presenting reliable information.Conceptual framework of financial reporting include the definition of assets , liabilities, incomesand expenses (Hadi, Suryanto and Hussain, 2016). Furthermore, it provides measurement basesand guidance to use them. It also provides concepts band guidance for presentation anddisclosure of financial information. The conceptual framework provide fundamental conceptswhich helps the board in developing the IFRS standards. The regulatory framework which is used to govern the financial reporting includes IFRSand IAS. IFRS ans IAS are the standards set by the board to present the financial information inthe reporting format. International financial reporting standards are the standards set by theboard which provide rules and regulation on the basis of which financial statements are preparedby the organisation. International accounting standards are the old standards which were replacedby international financial reporting standards (Kaya and Koch, 2015). Principles of IFRSincludes various standards such as IFRS 4 provided principles for shadow accounting, IFRS 3provide principles for business conmninations. IFRS 2 provide principles for shar basedcompensation and IAS 2 is related to treasury shares. The qualitative characterstics of fiancial reporting 2
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
International Financial Reporting Purposelg...
|18
|4242
|215
The Context & Purpose of Financial Reportinglg...
|21
|4358
|366
Financial Reporting Answers Assignmentlg...
|16
|4490
|68
Assignment on International Financial Reportinglg...
|18
|5292
|135
Financial Reporting Context and Purposelg...
|18
|4021
|212
International Financial Reporting Assignment (Doc)lg...
|15
|4171
|440