Analysis of Corporate Financial Accounting Practices Report

This report provides an overview of financial accounting, emphasizing its significance in the corporate environment. It defines financial accounting as the process of summarizing, reporting, and analyzing financial transactions to provide insights to internal and external stakeholders. The report highlights the importance of financial statements, including the income statement, balance sheet, and cash flow statement, in assessing a company's financial performance and position. It also discusses the role of financial accounting in communicating a company's financial health and its importance to investors and creditors. The report further explores the roles of internal and external stakeholders, such as employees, managers, consumers, and suppliers, and how they are affected by corporate financial performance. The report references the standard set by the Financial Accounting Standards Board (FASB) and other academic sources.

CORPORATE FINANCIAL ACCOUNTING

Financial Accounting
Financial accounting is defined as that field of accounting
that is concerned with the overall summary, reporting and
analysis of the financial transactions which is related to the
business.
This involves preparing of the financial statements which is
available for the use of public.
It is the process of the financial statements which is used by
the companies for showing their financial performances as
well as financial position to the people who are outside the
company which includes investors, creditors, customers and
suppliers.

Financial Accounting
Most of the companies put quarterly as well as annual financial
statements together, which are presented or making available to the
public who are investing and the shareholders. The financial
performance of the company is showed by the four basic financial
statements, which are as follows:
Income Statement- This is also known as profit and loss statements.
This statement covers the particular period of time such as a year or
quarter. In the income statement, net income is generated by deducting
total revenue from the total expenses.
Balance Sheet- This is the statement of the assets as well as the
liabilities. The balance sheet is considered as the financial snapshot at
the specific period of time or at the end of the financial year.

Financial Accounting
Cash Flow Statement- This statement shows the inward and
outward flow of cash to and from the company over the
specific time period.
Statement of Retained Earning- This statement covers the
specific time period and shows the paid dividends from the
shareholders earnings and the company’s retained earnings
Financial statements must confirm to the accounting standards
set by regulator. In the US, financial accounting as well as
reporting standards (GAAP) is established by the Financial
Accounting Standards Board

Role of Financial Accounting in Corporate Environment
Financial Accounting is concerned with the financial statements that
are prepared for the decisions makers that include internal as well as
external stakeholders such as creditors, banks, employees,
stockholders and suppliers.
Financial accounting helps the organization for achieving the
objectives with the help of assembling, organizing as well as
communicating the information about the corporate environment.
Accounting is the way of communicating the financial health of the
organization to the interested parties as well as it is also the method
for assessment of the liabilities, assets and the cash flows or the
company’s future for all the investors that is current and future.

Role of Financial Accounting in Corporate Environment
Internal Stakeholders are the individuals or the parties who
are the part of the organizations such as Employees, Owners,
Managers, Investors and Board of Directors.
External Stakeholders are the stakeholders who are not
within the business such as Consumers, Regulators, Investors
and Suppliers. However, they care about or they are one who
is affected by the affected by the performance of the
corporate.

Reference
Crowther, D. (2018). A Social Critique of Corporate
Reporting: A Semiotic Analysis of Corporate Financial and
Environmental Reporting: A Semiotic Analysis of Corporate
Financial and Environmental Reporting. Routledge.
Lovell, H. (2014). Climate change, markets and standards: the
case of financial accounting. Economy and Society, 43(2),
260-284.
Watson, L., 2015. Corporate social responsibility research in
accounting. Journal of Accounting Literature, 34, pp.1-16.