Financial Reporting Of The Chorus Ltd

Financial reports consist of a statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows, notes, directors' declaration, directors' report and the auditor's report. The financial statements need to be prepared in accordance with applicable accounting standards, making the necessary disclosures in order to be transparent and fully inform readers about the activities and financial situation of the entity.

The objective of accounting reports are to provide external and internal users the information that enables them to make improved finanical decisions. Therefore the users of the information are the same for all entities, the types of information they are most concerned with is what differs. Investors, creditors, employees, managers, owners and government agencies are the users of the financial information.

States. Companies should report income, liability, equity, and assets. Many people (stockholders, investors, etc.) who have a stake in the company want to know this information before providing a service. In this paper, International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) will be compared for

Financial statement measures the financial performance, liquidity and strength of the firm, it is important

Financial reporting is extremely important in our everyday life. You have heard of the many

Thus, the objectives of financial reporting are crucial because it’s a way of formally providing reports of financial actions and files within a firm to owners, stockholders, governmental tax authorities. Moreover, they provide a consistent approach for firms in order to be more transparent, avoiding any scams which might takes place within the fiscal (money related) records.

In any business operations, full financial disclosure refers to the provision of the necessary information about a company for better decision making by the people accustomed. It is the financial revelation of a given company. There are some financial disclosures in any business that ensure proper understanding of financial statements to the financial readers, or potential auditors. Examples are the annual financial reports and the financial declarations of the company. The annual financial reports of the enterprise are very useful since they discloses the revenues recognized in the business, and the accountability of the inventories plus the income taxes accounted for during that period of operation. Second, is the disclosure of this financial statements which gives the actual revelation of the company 's stock options, liabilities and the effects of foreign currencies?! This disclosure includes the company 's balance sheet of the year, income statements and also the cash statements flows of that year. This information gives a proper understanding of the financial status users about the effects of inflation and price change on property and inventories (Berger, 2011).

The most common user of general purpose financial reporting is present and potential investors, lenders, and creditors. So the objective of financial reporting is to provide relevant financial information that is useful for users in making decision about buying, selling and providing loans or setting loans. The user needs information about resources of the company as well as also wants to know how efficiently management of the company performs their duties to use resources of the entity. The IFRS framework says that financial reports cannot provide all the information to users that users may need to make decisions. They must need relevant information from other source.

Because financial statements are accounting reports, one of their purposes is to communicate financial information about a business entity to investors and other interested parties. Financial statements provide information on the business' financial position or status as well as financial changes during a period of time. They communicate to investors information about financial decisions that have been made (Woelfel, n.d.).

Financial statements provide information of value to company officers and various external parties, such as investors and lenders of funds. Publicly owned companies are required to publish general-purpose financial statements that include a balance sheet, income statement, and statement of cash flows. Financial statements issued for external distribution are prepared according to generally accepted accounting principles (GAAP).

The traditional financial report is established on the basis of historical cost ignoring the influence and lacking of social contribution. For this reason, it is accepted that the reflection and information from the traditional financial report is not complete (Blair, 1995). Meanwhile, the timely efficiency and forecasting of financial report is lack (Wallman, 1996). For instance, the soft assets including human resource and talent capital are not confirmed and evaluated properly. For this reason, the financial report should have more flexible modes in order to satisfy the shareholders’ requirements. Furthermore, the traditional financial report is shortage of social responsibility in enterprise’s exposure.

1- The Lufthansa Annual Report is financial accounting document as it provides information for external users like consolidated income statement, consolidated balance sheet and consolidated cash flow statement and it gives information about past performance while managerial documents must be up to date information, since it was published so it is conclusive evidence that it is a financial document because managerial documents are prepared for internal users. (1)

Good company reporting is absolutely necessary and vital as it provides valuable information to its shareholders, creditors and other stakeholder groups who may have the interest in knowing the position of the companies and their activities. It is equally important to maintain an equilibrium or balance between the cost of collecting and publishing the information and the cost of finding the information by the respective readers. It does not necessarily mean that adding bulks of information make the report a good one. It is the quality of information that counts. Government is highly dedicated to affirm that reports maintain a certain degree of quality rather than large and unwieldy information. Trade and Industry

Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses are directly related to an organization 's financial position.

A Reporting Entity as per SAC 1(para 40) means, an entity which, regardless of any sector, has stakeholders who rely on the general purpose financial reports, evaluate the performance and financial position of an entity and make decisions regarding allocation of resources. Hence, an entity will be called as an reporting entity, if there are users who would rely on the analysis provided by the GPFR.