The Publication of Financial Reports

1572 Words6 Pages
Over the years, annual reporting has undergone drastic changes. It is becoming increasingly important as the readers are not limited only within certain geographical boundary but expanding internationally. With globalization, public listed companies must ensure more transparency and more accurate information. This has led to publication of their reports on their websites making people all over the world easy access to their performance. Today not only financial reporting are becoming important part, but a company has to include non-financial reports as well. Yet, needless to say, interest for most stakeholders in the annual reports have always remained the financial section of the reports. Hence need for more comprehensive reporting arises. Birth of financial reporting took place when many people started contributing small amounts of their money towards a common stock to achieve a common goal. Thus, financial reporting is a sensitive report that can drive the image on success of a business. It displays soundness of their business in globally competitive business world. Thereby, determining the choice of investors to invest their capital in various companies. Financial reports are either guided by the rules and principles of US GAAP or by the accounting standards of IFRS. IFRS being more flexible comparing to US GAAP, is seen to be increasing in its popularity as accounting standards adopted by businesses. Nevertheless, their underlying assumptions have been the same. And
Get Access