Financial Accounting Report: IFRS, EFRAG and Business Decisions

This report provides a detailed analysis of financial accounting, focusing on the importance of financial reporting standards like IFRS (International Financial Reporting Standards) and the role of EFRAG (European Financial Reporting Advisory Group). The introduction highlights the significance of financial data disclosure for attracting capital and influencing investor decisions. The report examines various financial statements, including income statements and balance sheets, and their impact on managerial decision-making. It emphasizes the benefits of adhering to IFRS guidelines for global investment and the role of EFRAG in advising and promoting European perspectives on accounting standards. The mission statement underscores the importance of accurate financial information in making business decisions, attracting investors, and fostering corporate communications. The report also includes an overview of EFRAG's organizational structure and its role in addressing financial reporting issues, promoting effective accounting standards, and supporting the financial stability of businesses. The report concludes with a list of relevant references, including books, journals, and online resources.

Financial Accounting

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MISSION STATEMENT................................................................................................................1
REFERENCES................................................................................................................................4

INTRODUCTION
The disclosure of the financial data set will be beneficial for the organisation in context
with acquiring the adequate amount of capital funds gathering. Thus, there will be disclosure of
the various statements such as income statements, balance sheet of the firm as well as ratio
analysis. Hence, which in turn affect the decision making of the shareholders and investors in
context with the investment in the organisation. Hence, it can be said that, with the help of such
reporting techniques a manager will be beneficial in making the adequate decision making which
in turn helpful for the business in enchaining the operational performances of the organisation. In
accordance with the framework and guidelines facilitated by various legal accounting institutions
such as IFRS and IASB with motive of facilitating the adequate information to the users of this
data such as owners, operating managers, employees, consumers, shareholders and other relevant
investors.
However, due to impacts of this legal authorities an accounting professional or the
auditor in organisation will be able to make the adequate data set which denotes that the
statements must be prepared in the universally accepted formate so the inventors from other
countries will be able to make the adequate investments decisions. By considering the framework
facilitated by EFRA group which was established in 2001 with the motive of facilitating the
adequate advises to inventors which helps in enchanting the capital market. Hence, there can be
benefits of such module and managerial skills which in turn benefited the operational activities.
The organisation was established to facilitate and provide adequate advices or business solutions
to Individuals or corporation in context with preparing financial reports in the accordance with
the IFRS formate and framework (Poli, 2017). Hence, they monitored that entity is making use
of such techniques in the right manners or not. Thus, such advices shed lights on the legitimacy
and governance of the financial statement framework which in consideration with European
techniques, ideas and views of leadership.
MISSION STATEMENT
In order to serve the adequate information relevant with the financial capacity of the firm
there is need to monitor operational activities in the firm. Hence, these things will be benefited as
if the company implement the use of various accounting techniques as well as adopt the methods
to present the financial data in the manner of preparing such data set with the help of IFRS,
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EFRA and relevant groups (European Financial Reporting Advisory Group (EFRAG), 2017).
Thus, the motive of such organisation or institution is to have the present the reports with the
adequate informations such as annual turnover of the business, investment by various
shareholders, market value of the firm, share price and the dividend rates of the entity (Maglio,
Agliata and Tuccillo, 2017). Hence, such informations will help managers or directors of firm in
taking the adequate business decisions such as investments in the piece of work as well as
reducing the non fruitful activities.
On the other side such statements will be beneficial in making the proper corporate
communications such as in making investments in the new project, collaboration of the work
with another firms as well as expansion of the business units. Hence, it accordance with the
motive of EFRA is to make the promotion of the European ideas, views and thoughts in context
with the leadership in the accounting standards issued by IASB. Thus, the legitimacy and
governing of the financial standard will be in the consideration of the European methods of
handling such accounts (Gluzová, 2017). However, with the help of such accounting techniques
the managers in the organisation will be facilitated with the adequate information about the
capacity or ability of the business in making further invests or lower down the expenses over
operational activities.
Moreover, the motive of such advisory group is to facilitated the advices in accordance
with the organisations are following the IFRS and IAS module in the correct manner or not or
with full accuracy. Thus, if the entity fails to present the adequate data set in the market which
are based on the rules and regulations ans well as various norms set by such institutions than they
will be advised to make the adequate decisions (Hoinaru and et.al., 2017). Hence, the objective
of such group is to carry out a mission to serve European individual interest throughout the
world. Thus, Group has the organisational framework or the operational criteria such as make the
effective meetings in every Quarter of the years on which various firms or groups of financial
reporting gathered to raise up the major issues which are faced by them in making the disclosure
of accounts (Bensadon and Praquin eds., 2016).
However, such meetings helps to design or represent the effective solutions to such
financial reporting issues as well as enhances the use of such accounting standards. Hence, in
order to make this fruitful organisation more powerful as it will help the various organisation
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throughout the world there will be need to adequate amount if reserves of funding for them
(Onali, Ginesti and Ballestra, 2017). However, which in turn helps in creating the effective
performance of such business. On the other side this institution helps in making the strong
funding and financial structure of the business this are being fruitful in creating identity in the
market (Maystadt, 2017). Hence, it also provokes the market value of the firm. Hence, the
operational structure of this group can be understand with the help of below listed diagram:
Illustration 1: Structure of EFRAG
Source: (EFRAG Today, 2017)
Moreover, with the helps of implication of the activities or advices facilitated by these group a
firm can be beneficial in gathering the required numbers of shareholders as well as it helps in
individual in making the investment in such industry on which the firm is having the adequate
returns (Cascino and et.al., 2016). Once, it can be said that with the help of such tools and
techniques there will be preparation of adequate disclosure of such accounts which in turn helps
in attracting the large numbers of investors.
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REFERENCES
Books and Journals
Bensadon, D. and Praquin, N. eds., 2016. IFRS in a Global World: International and Critical
Perspectives on Accounting. Springer.
Cascino, S. and et.al., 2016. Professional investors and the decision usefulness of financial
reporting.
Gluzová, T., 2017. The Revised Control Concept in the Consolidated Financial Statements of
Czech Companies. In New Trends in Finance and Accounting (pp. 433-441). Springer,
Cham.
Hoinaru, R. and et.al., 2017. Accountancy, Accountability and Practice. Accounting, Economics,
and Law: A Convivium. 7(2). pp.17-29.
Maglio, R., Agliata, F. and Tuccillo, D., 2017. Trend of IASB Project on the Distinction
between Equity and Liabilities: The Case for Cooperatives and Continental European
Firms.
Maystadt, P., 2017. Why and How EFRAG was Reformed. Accounting, Economics, and Law: A
Convivium. 7(2). pp.31-34.
Onali, E., Ginesti, G. and Ballestra, L. V., 2017. Investor reaction to IFRS for financial
instruments in Europe: The role of firm-specific factors. Finance Research Letters. 21.
pp.72-77.
Poli, F., 2017. ‘Different approaches to regulating private company financial reporting’: a
practitioner’s view. Accounting and Business Research. 47(5). pp.503-505.
Online
EFRAG Today. 2017. [Online]. [Available through] :<https://www.efrag.org/About/Facts>.
European Financial Reporting Advisory Group (EFRAG). 2017. [Online]. [Available
through] :<https://www.iasplus.com/en/resources/regional/efrag>.
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