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Financial and Accounting Questions
Finance & Accounting
Pages 6 (1506 words)
PLEASE ANSWER THESE QUESTIONS SEPERATELY Table of Contents Table of Contents 2 SECTION A 3 a.Usefulness of financial statements in decision making process 3 b.Fundamental properties of reporting information identified by the IASB Framework 4 SECTION B 6 a.Liability as Regards to IASB Framework 6 b.Recognition Criteria under IASB Framework 7 c.Disclosure of absence of earthquake insurance by a company 7 References 9 SECTION A a.
include a systematic representation of all the financial transactions carried on by an organization. These financial transactions are first identified, recorded and then communicated to the interested users in the form of financial statements. The users can be either internal managers of the organization or the outsiders like the stakeholders of the company (Kimmel, 2011, p.5-6). Out of many uses of these financial statements to its users, decision making is one of its most crucial aspects. Interpretation and financial analysis of these financial statements facilitates decision making process of a company. Business organizations have to take so many vital decisions on a regular basis. These strategic decisions, whether it is long term or short term, can either make or break a company. A company’s future is dependent the soundness and efficacy of the financial statements. Now in order to facilitate decision making, the financial statements prepared must exhibit relevant information required by the managers to interpret and come to a decision. It includes information regarding relevant costs and revenues associated with it. ...
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