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Integrated Reporting Framwork
Finance & Accounting
Pages 5 (1255 words)
Integrated Reporting Framework: Name: Institution: Instructor: Subject: Date: Integrated Reporting - Is it or will it be possible to produce and use an appropriate and acceptable integrated reporting framework? Introduction The tradition method of reporting financial information categorized items in the books of accounts initially under two sections – assets- that were defined as resources or rights that were controlled by an entity and expected to yield a return in the future; and liabilities – which are obligations of an entity at the accounting date to make future transfers of assets or services to other body organisation (Ernest, 2008, 122).
This created the need to improve the financial reporting standards by having in place an improved conceptual framework. The main objective of financial reporting is outlined as providing information that is useful to present and potential investors and creditors in making investment and credit decisions and other users, and also in resource allocation. The previous concept that laid emphasis in providing information to management and owners and others on enterprise performance or profitability in describing how management has performed is lacking enough information. The recognition of every user of financial information is the key for the conceptual framework. IASB recognises the following users of financial information equity investors, loan creditors, suppliers, employees, customers, members’ of public, the government and government bodies. With such robust of potential users it is important to provide financial information in a clear format that benefits all. ...
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