Conceptual Framework For Financial Reporting Essay

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

SUMMARY OF STUDY OBJECTIVES 1Identify the sections of a classified balance sheet. In a classified balance sheet, companies classify assets as current assets; long-term investments; property, plant, and equipment; and intangibles. They classify liabilities as either current or long-term. A stockholders' equity section shows common stock and retained earnings. 2Identify and compute ratios for analyzing a company's profitability. Profitability ratios, such as earnings per share (EPS), measure aspects of the operating success of a company for a given period of time. 3Explain the relationship between a retained earnings statement

The purpose of this paper is to define accounting, and identify the four basic financial statements. The paper also explains how the different financial statements are interrelated to each other and why they are useful to managers, investors, creditors, and employees.

What is the future value of $7,540 at the end of 7 periods at 8% compounded interest?

•"General purpose financial report" means a financial report intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs.

The accounting system we use today started in Venice in renaissance period over 520 years ago. The trade business increased hugely during this time and all the financial recordings had to be written down to help people see how their business is doing. During that time in 1494 the first book about was published in accounting by Luca Paciolli and was called “The Collected Knowledge of Arithmetic, Geometry, Proportion and Proportionality”. He was called “The father of Accounting” and most of his described principles have been used up until this day.

For BHP Billiton and ANZ, financial reporting is an integral part of their business, the primary objective is to provide the most useful information for stakeholders in their decision-making; it helps ensure that the companies and organizations are in good financial condition in the industry and that their operations are honest and transparent to follow the rules and regulations under the restriction of the law. Both of these companies comply with the necessary government requirements and disclosure for the sake of their investors, and stakeholders, while managers use this data to make important decisions, adjustment, budgeting and changes needs for their investment.

Financial statement users around the globe use financial statements to evaluate the performance of companies (Fundamentals of Financial Accounting, 2006). In order to locate a company’s reported assets, liabilities, expenses and revenues, statement users rely on four types of financial statements. The four financial statements include: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows (Fundamentals of Financial Accounting, 2006, p. 6). Each of these reports provides different information to the financial statement user. The Balance Sheet reports at a point in time: a company’s assets (what it owns), liabilities (what it owes) and

General Purpose Financial Reports can be defined as a financial report which is made with the intention to meet the need of information common to users who are unable to command the preparation of reports tailored so as to satisfy, specifically, all of their information needs (Statement of accounting concept – 2, Page – 5, paragraph – 4). In simple words, the users who do not have necessary power to demand financial statements from a company specifically depends on the information given in the general purpose financial reports. Under the Conceptual Framework released in 2010, the primary users of the financial reports are mentioned as

The following report is an analysis of the consolidated accounts for Hallenstein Glasson Holdings Ltd (HLG) based on the 2013 financial statements and the ratio analysis is based on the group account figures. The terms of this report is to firstly, determine the strengths, weaknesses and prospects of HLG and secondly, to determine if the shares are favourably priced?

ORL adapts a flexible business model depending on changes of the market. In general, ORL’s strategy is to provide worldwide luxury brands and it focuses on channel of distribution, extension of Asian market and licensed brand.

Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values.

 Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ

Financial reporting being my last module in this course has been quiet rewarding and beneficial as it provides comprehensive guidance for the acquisition of requisite knowledge and skill to appraise my current role as an accountant. The theories, concepts and ideas introduces new areas otherwise would not have been exposed to, for example, potential uses and limitations of Extensible Business Reporting Language (XBRL). It laid solid foundation for the application of financial accounting, financial reporting and corporate governance in the course of my career as well provides a platform to enhance my understanding and competence in areas of financial reporting.