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The financial reporting disclosure requirements and norms needs to respond according to the changes like breaking down of items in the report to providing more detailed disclosures of the items like disclosure of assumptions, sources of estimation, models used, alternative measurement bases etc. Hence in today’s world disclosures in the annual report have become the balancing item to provide a credible report. The auditors need to disclose the accounting policies used while preparing the report to enable the user of the report to understand the report comprehensively. Majority of these disclosures were derived from the accounting system. There are many types of disclosure which are important, but a majority of them was related to the numbers in the annual report. Discussion Answer 1 With increasing complexity of the financial reporting the financial statements now have to include a variety of disclosures in addition to the traditional disclosures. The following are the list of disclosures which have to be included in contemporary financial statements. Annual report now have to include description of the accounting policies which is adopted by the relevant entity so that it becomes easier to understand the line items of the financial statements and the accounting policies on which it is based upon. ...Show more

Summary

Finance and Accounting Contents Contents 2 Introduction 3 Discussion 3 Answer 1 3 Answer 2 4 Answer 3 6 Conclusion and Suggestion 7 Reference 8 Introduction Financial reporting has evolved over the years to meet the changing needs of the users. With increasing complexity of business and capital markets, the financial reporting needs to get changed…
Author : rippinmarlen
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