The Disclosure Of The And E Of Financial Reporting Essay

The information found in financial statements outlines the financial activities of that company, and can help managers, creditors, and investors make many important decisions.

As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the

This report is written as a response to the monograph in which the ICAEW published on how financial accounting disclosures can be improved. The aim of this report is to critically discuss and evaluate the worthwhileness of the recommendations made from a financial investor’s perspective. It is done by reviewing recommendations put forward by the ICAEW and analysing if each of the disclosure recommended is worth the effort while putting in perspective what effects these recommendations have on professional investors who are one of the primary users and consumers of financial statements. The report contains information mainly from the ICAEW report and the CFA institute report

This standard outlines the presentation of financial statements for general purpose financial statements, in order to ensure that there is compariablity between the entities reporting periods as well as between other industries reports. The standard discusses the minimum requirement for reporting content and guidelines for the structure in which it is to be set at. Paragraph 117-124 distiguishes the disclosure of accounting policies in relation to judgement. Management’s judgement made in applying accounting policies that may have effected significant amounts found in financial statements and the financial position. Seen in paragraph 125-133 ‘Sources Of Estimation Uncertainty’, it is vital that entities disclose the key assumptions made regarding future prospects and other uncertain estimates that are used in identifying carrying amounts of assets and liabilities. Along side this, the nature and carrying amount must be disclosed at the reporting date.

This paper will analyze these views as they apply to the discloser of segment information for public entities as required by topic 280 of the FASB accounting standards codification, and discussed in Statement of Financial Standards No. 131 (“SFAS 131). The paper is structured as follows: Section II provides an overview of the objective and general purpose of financial reporting and the qualitative characteristics off useful financial information as determined by the Financial Accounting Standards Board (“FASB”), section III introduces the concept of segment reporting and outlines the requirements for disclosures of segment information for public companies, section IV evaluates the relevance of

The purpose of this research report is to understand of two important concepts from the Conceptual Framework for Financial Reporting----the objective of general purpose financial reporting and qualitative characteristics of useful financial information. In this report, Myer Holdings Ltd is as an example to describe these two concepts. This report includes the analysis on whether the disclosure of PPE from Myer Holdings Ltd meets the requirements of AASB 116, especially the requirements of objective

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.

In order to help users of financial statements better understand the public entity 's operations and make more informed decisions about the public entity 's operating matters, publicly-held companies are required to disclose the segments and related information about the different types of activities in which the company engages and the different economic environments in which the company operates. According to FASB Accounting Standards Codification, public entity is a business entity or a not-for-profit entity that issues securities in public market or is required to files financial statements with SEC. FASB provides guidance regarding the disclosure in the notes to financial

According to WebFinance, Inc., the definition of disclosure, in relation to accounting practices, regards “Statutory or good faith revelation of a material fact (or an item of information that is not generally known) on a financial statement or in the accompanying notes (footnotes)” (2015). Furthermore, as per the Financial Accounting Standards Board [FASB], “The purpose of the notes to financial statements is to supplement or further explain the information on the face of the financial statements by providing information relevant to existing and potential investors, lenders, and other creditors . . .” (2013, p. 1). Publicly traded companies fall under regulations that are set forth by governing authorities to assist in bringing concise information to external users. The Starbucks Corporation [SBUX] implements the disclosing of pertinent information in its annual report by expanding within the section named “Notes to Consolidated Financial Statements” (SBUX, 2014, p. 51). The company’s cash and its equivalents, receivables, and inventories are further explained according to data as provided by SBUX.

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 balance sheet and Income statement are the most important financial statements of the company that help conduct current analysis of company and evaluate its trends overtime. The balance sheet represents the company snapshots of its financial position on the last days of accounting period. Apple balance sheets, which represent a snapshot of its ending balances in asset, liability and equity account as of the date stated on the report, are changes each year from 2003 to 2014. On the other hand, the income statement shows its financial performance over 2003 to 2014. Apple basically ends its accounting period in September. Most of the long-term debts are in the form of the bonds. According to appleinsider.com, Apple recently issues a new euro bond worth about $2.26 billion with a maturity date on January 17, 2024 and coupon rate of 1.375% payable annually. The first payment will occur on January 17, 2016. Moody’s recently assigned a rating of Aa to Apple Inc. 's senior unsecured note issuance. Thus, Apple recent capital expenditure amount to 11,488 million according to morningstar.com. The analysis of financial statements is conduct to compare Apple with one of its closest rival Hewlett-Packard and twelve ratio were calculated. From table1 and chart1, the current ratio that determine the company ability to meet its short term obligation shows Apple’s current ratio is higher than that of Hewlett-Package from 2003 to 2014. That is, Apple is solvent than Hewlett Packard. Table

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.

Under this situation, the IIRC announced the relative exposure daft including five chapters from six dimensions to explore the integrated report’s features. This framework attempts to introduce outside strategies, governances, current achievements and advanced prospect to reflect the comprehensive performance of the real company. On this basis of integrated report, the shareholders or investors could obtain more useful information for their corporate thinking and decision making. However, the controversy between the traditional financial report and integrated report has been continued. The following

There are some notable differences between, both, the formats, and the content of financial statements when using SAGE compared the standards required when following IAS1. These differences vary between stating which currency you are using, the contents and layout of items in the statements, rounding, and the terminology used to describe items in the statements and several more. This report aims to compare, critique, and provide suggestion for improvement where necessary regarding SAGE and how it links with IAS 1.

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