Financial Position And Financial Statement Essay

933 WordsDec 2, 20144 Pages
Introduction For a definition, ‘matching’ is a primary function of accounting to accumulate and interact information crucial to our understanding of the activities of a company which often knows accruals concept(The Accounting Review, 1965).In this essay,matching concept would be discuss in statement of financial position and financial statement to compare significant impacts and differentiation,especially income statement in the enterprise’s performance and position . Also associated with some applications indicate matching promote the quality of financial reporting(for instance,pension allocation,income taxes,and general expense). performance in income statement One of the aspects of matching shows the relationship of company value and income statement appealing investors because of demanding regulation based on their needs to make efficient economic decisions and perform control, but also motivate awareness of linking management to generate overall value(Gjerde, Knivsflå and Sættem, 2011)As we all known, the income statement explain some but not all changes in asserts, liabilities, and equity of the firm between two consecutive balance sheet dates,meanwhile, reports on the performance on the firm, the result of its operating activities(Jones, 2013, pp.94-99).In the framework, IASB explains that there is a direct association between the cost incurred and the earning of specific items of income(Weetman, 2010, pp.250- 255). The performance judgment boost to disclose the
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