Disclosure Of Financial Reporting : Verizon Communications 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

financial statements” (Waxman, 2013, p. xiii). It is the purpose of this paper to discuss some of

The requirements for the accounting policies disclosure are stated in ASC 235, Notes to Financial Statement. ASC 235-10-50-3 requires that the entity should identify and describe the accounting principles it follows and the methods used for the application with respect to the materiality affect. The format and location of the footnote is flexible; however, it should be an integral part of the financial statements.

Another GAAP is the full disclosure principle. This principle states that it is imperative to include all information in a financial statement of an entity that would affect the reader’s understanding of the statements. This principle also includes the reporting of any current accounting policies as well as any changes of them.

Each company must prepare financial statements to provide a comprehensive picture about its past performance and situation for the owners, the managers, the state and other stakeholders as well. In the case of enormous, international public limited companies like Ford and Microsoft these statements and data are public, so anybody can reach them through the internet. Moreover, we can also compute a lot of financial ratios based on these data. If we want to get an authentic frame about the firms, we have to know what these statement and ratios mean. In addition, it’s difficult for the companies that they want to give other picture about their financial status to

Every year, corporations work with designers to create and distribute their most important document of the year: the annual report. If produced effectively, this document, marked by high production values, massive printing expense, and the collective work of designers, corporate communication teams, writers, models and photographers, serves to persuade a shareholder audience that the investment choices they have made are wise, that the company reflects the values of their investors, and that investors should, above all, not divest themselves of the company’s stock. Annual reports serve not only to communicate the financial health of a company to their audience, but act as a bridge between a corporation and a concerned shareholder. And in times of turmoil (such as the economic crash experienced in North America in the fall of 2008), they must be especially effective in communicating a company’s identification and consubstantiality (Burke, 1969) with their audience’s ethos.

In this paper, we analysed the target audience, big and small differences, content, and ways to improve the annual report. The Hershey Company’s Annual Report and 10K have many differences and few similarities, where each document is written to communicate financial statement disclosures to its intended audience.

Leading companies Berkshire Hathaway Inc. and Enron Corporation have both formulated annual reports on the course of their business relations, “To the Shareholders of Berkshire Hathaway Inc.” (2000) and “Outdistance the Competition” (2000), respectively. These annual reports try to appeal to the companies’ audience while also asserting how they will continue to develop their companies to increase profits. The authors of the reports proceed by delving into how the companies have done in the past to build a sort of trust with the reader before explaining what their goals are and how they will accomplish those goals. The authors establish different tones in their reports, but it’s evident that their intended audience is the same –

Ethically, the company must provide any information the SEC seeks, whether the information is positive or negative. The company’s external stakeholders, such as customers and creditors, will value the honesty and transparency reflected in the 8-K filing as well as the forthcoming press release. This company’s reputation can be rebuilt over the course of time with regular, truthful, and accurate corporate communication.

Shareholders: These are the equity holders who have invested in the company. These shareholders are concerned about the returns generated on the investment made by them in the company. These are concerned about the profitability and the strategic decision making of the management. the stakeholders analyze the complete annual report, financial statement and the accompanying notes.

Each quarter we are responsible for an extensive overview of our financial records and we submit those to an outside accounting service to ensure there is no room for error. These reports are then constructed and submitted to our company stakeholders and Wall Street. Organizations that are under pressure to present positive financial results to shareholders, parent companies, banks, creditors and other key stakeholders

The report of the general purpose of financial reporting outlines an importance of ensuring about what companies disclosure on the PP&E in the report in regards to the qualitative characteristics of useful financial information by the general purpose financial reporting. The report investigates how this company meets the disclosures requirements for PP&E as per AASB116 as well as what extents the disclosures on the PP&E contain the fundamental and enhancing qualitative characteristics of useful

In meeting the needs of shareholders versus those of stakeholders many ethical issues can potentially arise. Many of these challenges involve the corporation's roles, duties, and obligations to various stakeholder groups. For example, should a company provide a premium work environment for its employees who have suffered numerous injuries when the cost of doing so far outweighs the benefits? Should a company pay to replace or recall a defect in a car, or simply pay the legal fees that the defect will undoubtedly cause? In regards to shareholders, management may provide an overly optimistic view of business operations. This could mislead individuals to invest in a company such as GM, when it is on the verge of bankruptcy. First, annual reports are the main culprits of this optimistic approach to business operations. By simply glancing at a copy of Chryslers annual report, a potential investor will be inundated with pictures of overly gregarious and jovial individuals (Business, 2011). These pictures often influence investor's mindsets by seeming cheerful and inviting, which in reality is a trap. The letter to shareholders is another opportunity for management to use their marketing prowess instead of their financial acumen. Again, these letters in some circumstances depict an overly optimistic tone which may not accurately reflect the underlying business characteristics of the company. This is unethical as it guides

Financial crises like dot-com bubble in the late 1990s and the housing market crash in the late 2000s prompted investors, and firms, to reconsider the criticality of financial discipline. Transparency would be necessary to entice investors to spend money again, thus a firm’s financial statements became their marketing tools. These examples reinforce the importance of financial statements’ relation to the financial wellbeing of a company. This paper serves as a report on the purpose and aspects of the various financial statements and their applicability to the performance of a firm.

Demands for transparency: stakeholders including customers, suppliers, employees, communities and activist organizations demand for more transparency and corporate disclosure. It is also true that transparency pays, according to Robert Eccles, author of “the value reporting valuation”, the market gives a higher value to