Financial Statements We See Nowadays Have Gone Through

In this paper I will identify the four basic financial statements, discuss how they are interrelated with each other, and why they are useful to managers, investors, creditors, and employees.

The Board of Directors declared a quarterly cash dividend of $0.20 per share on the company’s common stock. This increase in dividend was payable to shareholders of record on closed of business on May 11, 2016. In the first quarter of this year, the company brought back 1.0 million shares of its common stock at a cost of $50.0 million, with the expectation that it will return its free cash flow to shareholders in this year in the form of dividends and share of repurchases. The Cheesecake Factory knows the importance of success, therefore they schedule conference calls and webcast live on the company’s website throughout May 26, 2016. This ensure stakeholders that the company was not in the red, and continue to profit.

When prepared the financial statement might be ignore this legal case, but this court case at current reporting period, on the basis of the evidence there is a present obligation, the provision should be recognised when the CCA has present obligation and reliable as per AASB137 para10. Legal proceeding is started seeking charge fine US$17million, this liability arise from legal obligation and settlement can be by court and provision should be recognised (Hamodia 2017). Therefore, this risk will make a material misstatement as contingent

This essay will begin to look at the main financial statements used by decision makers in businesses today. This essay will go into detail about the income statement and statement of financial position and whether these two statements provide decision makers with their financial information adequately. This essay will also include the various advantages and disadvantages of each financial statement as well as describing whom the decision makers are and why financial statements are important to them. A conclusion will be present at the end of this essay to demonstrate an overall view of whether financial statements are beneficial to decision makers.

Companies gather various information, including financial statements and other reports as a way to track their performance compared to past years. This information is also used to communicate with stakeholders about various topics depending on the reporting style. One type of such reporting is a business unit reporting where organizations gather information about separate divisions of the company to see if each division is functioning properly. There are separate accounts for each segment, so the company can examine if each division is operating at a loss or profit. By creating separate accounts, business reporting provides accurate reports on a company’s performance, based on the accumulation of all division information, for the

This report is mainly focussed on the topic related to Accounting theory concept in general. There are two articles to elucidate, first article is on Accounting Standards & conceptual framework, which is further discussed in detail about the qualitative characteristics of Conceptual framework. Second article is about Positive Accounting Theory, where we discuss about Accounting theories.

The principles are the result from the accounting practice that has been used and improved over the time. The deeper explanation about the statement is that, accounting standard such as IFRS is created based on the previous accounting practice itself rather the theories. The theories are useful in guiding the other field like finance and economics. There is also evidence that the accounting theory exists after standard has been practiced (Cluskey, Ehlen and Rivers 2007). The father of accounting, Luca Pacioli explained about double-entry booking in one of his studies. The study described the practice and explained to the readers the logic behind it. The research had given birth to dozens of studies made by theorist to further discuss about the accounting practice. By this evidence, the readers can also conclude that not only the standard that exist from accounting practice but in fact, accounting theory also exist to explain the nature of the practice. Back to the purpose of this paper, accounting theory plays no role in the setting of accounting standard is approved by two points: the process of setting accounting standard itself is a political activity and the development of accounting standard is influence by the existing accounting practice not accounting

Nowadays, with the position of accounting becoming higher, accountants should have enough professional abilities to solve problems or make decisions. In addition, high quality accountants must follow a set of guiding principles for preparing financial reports during their careers. Therefore, numerous principles and rules are significant when it comes to accounting. The External Reporting Board (XRB) which called the New Zealand Conceptual Framework (CF) provides the basic principles. Comparing to CF, the rules-based accounting standards includes more detailed rules. Furthermore, the principle-based standards which based on CF provide broad points of departure for users to apply. This essay will critically assess if the principle-based accounting standards assists or hinders the decision making for accountants facing financial statements. Points covered include the principle-based accounting standards ’

Financial statements of a firm has many important pieces to it to make the finally outcome. When a firm does a financial statement they have to include the income statement, balance sheets, and the statement of cash flow. When the statement of finance is complete the results will reveal what the company have been doing from one period to another. Throughout the report information about the financial statements and the different parts that bring it all together will be discussed. The more financial information known about a firm the better it is when time for investors to invest. It’s also a way for owner’s to be aware of the condition the firm is in.

Karl Gunnar Myrdal was an economist who belongs to Swedish and lived during the year 1988 till 1987. He contributed towards the theory of markets, economic fluctuation and a very efficient use of the limited resources and got the Nobel Prize for his theories presented. The theory of principles for Financial Theory profile sets out the principles that the Accounting Standards Board considers should bring about the research and demonstration of general purpose financial theories in the field of economics. The basic purpose of articulating such principles is to provide a rational frame of reference to be used by the Board for the improvement and evaluation of accounting standards in economics and by others who act together with the Board through the standard-setting procedure. Such a frame of orientation should explain the conceptual foundation of projected accounting standards and should enable standards to be developed on a steady basis by decreasing the need to discuss fundamental issues each time a standard is reviewed or established (Qiyan Wua, 2014). The economic theory is being published because of the knowledge of the principles should help the users and the preparers of the theories, as well including auditors and others, to appreciate the Board’s line of attack to formulating accounting principles and the nature of the information mentioned in the general purpose financial theories. Economic theories are a very valuable tool in analyzing the company’s economical

Economic and financial decisions are made based on Financial Statements. Financial statement is a statement where it records all the financial activities and position status of a company, person or an entity. In order to ensure that statements are useful, it follows certain framework which are based on accounting principles. Accrual accounting and Going Concern Concept accounting are the two accounting principles amongst various concepts. There are other various accounting concepts such as Consistency Concept, Realisation Concept, Prudence Concept, Business Entity Concept, Materiality Concept, Periodicity Assumption, Historical Cost Principle, Revenue Recognition Principle, Objectivity Concept, Conservatism Concept, Full Disclosure Concept, Cost Benefit Concept. Without these concepts, the rule of accounting will not be visible in making financial statements. It is necessary to have these sorts of concepts so that there can be a proper function in the financial department of any Business. But this document will attempt to explain it’s importance and the pros and cons of only Going Concern and Accrual Basis concepts.

Accounting as a profession or discipline, has always been seen as an information-generating one, which fittingly makes the job of the Accountant to be that of observing economic activities, recording the observations in the prescribed books, analysing the recordings, interpreting his analysis and preparing reports to all users of Accounting Information. The prepared reports are generally referred to as financial statements, which clearly outline or identify the areas of strengths and weaknesses of a business organisation. Various interest groups use the generated Accounting Information in the financial statements as input or guide towards the making of effective decisions

As investors are providers of risk capital to the enterprise, the provision of financial statements that meet their needs will also meet most of the needs of other users. Financial statements do not provide all the information that users may need to make economic decisions since they largely portray the financial effects of past events and do not necessarily provide non-financial information.

The IASB (The International Accounting Standards Board ) issued Exposure Draft ED/2015/3 Conceptual Framework for Financial Reporting on 28 May 2015, which proposes the changes for the Conceptual Framework . The conceptual framework define the objective and the purpose of the financial reporting. Exposure Draft proposed include the revisions of Conceptual Framework such as , the definitions of the financial statements, recognition and derecognition , measurement , presentation and disclosure and items in Other Comprehensive Income . The reason why IASB is improving the Conceptual Framework is because of lack clarity such as : some important topic are not covered , the guidance are unclear and some aspects are out of topic. The objective of this proposal is to develop financial reporting by providing clear and complete concept, depends in some area which are mention or not mention in details. This report include differences between debt and equity in IFRS, approaches that should be included in the Other Comprehensive Income and criticism of lack of clarity and consistency in the framework.

On behalf of the Board of Directors, it is my pleasure to present the Annual Report of Ajinomoto (Malaysia) Berhad for the financial year ended 31 March 2010.