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The Context and Purpose of Financial Reporting Assignment

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Added on  2020-10-22

The Context and Purpose of Financial Reporting Assignment

   Added on 2020-10-22

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FINANCIAL REPORTING
The Context and Purpose of Financial Reporting Assignment_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11. Outlining context and purpose of financial reporting..............................................................12. Examining conceptual and regulatory framework with its requirements, purpose and keyprinciples along with qualitative characteristics for reliable financial information....................23. Identifying organization's main stakeholders with reference to financial information............44. Examining value of financial reporting for meeting organizational growth and objectives....55. Presenting main financial statements according to IAS 1.......................................................6a) Income statement ....................................................................................................................6b) Change in equity statement......................................................................................................7c. Balance sheet............................................................................................................................7d. Information that is provided by cash flow statement..............................................................96.Interpretation of financial data..................................................................................................97.Presenting difference between IAS and IFRS........................................................................118. Evaluation of Benefits of IFRS..............................................................................................129. Determination of degree of compliance with IFRS ..............................................................13CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................15
The Context and Purpose of Financial Reporting Assignment_2
INTRODUCTIONFinancial reporting has disclosure of financial information for numerous stakeholderswith reference to financial position and performance of any business entity over specifiedduration. The financial aspects and accounting of every department are traced and reported todifferent stakeholders. The consideration of number of stakeholders are engaged with otherregulatory or statutory requirements, where financial reporting is very essential and criticalactivity of business entity. The present report will briefly discuss about objective of financialreporting, interpreting financial statements along with appropriate evaluation of standards offinancial reporting and theoretical concept and models. This report will reflect internationalvariances among financial reporting. In the similar aspect, it will be representing financialstatements according to IAS 1 and reflect comparison of purpose of cash flow to other financialstatements and will interpret financial performance of Thomas Cook with reference to ratioanalysis.1. Outlining context and purpose of financial reportingFinancial reporting is very essential with reference to world economies. Its mainobjective is to give useful and relevant information to organization's owners with context ofdivision among control and ownership of that particular business entity. Its occurrence is inusually public limited organizations where share capital is pass to public via stock market orexchange system. The shareholders which are diverse and potentially geographically dispersedwhich does not engage in company's management as they appoint directors for performing ontheir behalf. The annual statement had been received through owners for summarising company'sposition and performance for assessing about investment which has been performed duringreporting period (Amiram and et.al., 2018).Financial reports are referred as records and documents which are gathered for reviewand track amount of money created by business or not. Its main objective is to deliverinformation to share owners and lenders for business. The investors and lenders have right forconsidering each information about how money is spent and returns to margin. With absence ofreporting system investors would be inclined less towards contribution of capital withoutmonitoring in effective aspect that hoe business entity is operating through directors andappointed organization's steward who are directly supposed for operating in shareholder's bestinterests.1
The Context and Purpose of Financial Reporting Assignment_3
With context of accomplishing requirements of users of financial statements,organizations directly implement with accounting systems for giving appropriate information. Itis mandatory that system must be regulated for ensuring information provided to particular usersin proper format and is useful for their requirements. It is attained with framework of financialreporting on basis of conceptual framework.2. Examining conceptual and regulatory framework with its requirements, purpose and keyprinciples along with qualitative characteristics for reliable financial informationThe conceptual framework with context of financial reporting has directly underpinnedfinancial statements' preparation as it reflects ideas, principles and concepts with reference toInternational Financial Reporting standards on basis of financial statements. It comprisesobjectives of financial reporting, qualitative features, recognition and measurement of elementsthrough its construction. The concept of capital and capital maintenance along with accruals andgoing concern. The regulatory framework has various elements in accounting. It considersregulatory structure such as National law, Security exchange rules, National financial reportingstandards and market regulations.2
The Context and Purpose of Financial Reporting Assignment_4

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