fianancial reporting and analysis

fianancial reporting and analysis Essay example
Masters
Essay
Finance & Accounting
Pages 4 (1004 words)
Download 0
Name: Professor: Course Code: Date of Submission: These standards are created as a unified international business language, so that financial records of organizations can be understood all over the globe. This is because globalization has managed to create an aspect of international shareholding, and international trade…

Introduction

In 2011, the international accounting standard board revised the existing financial standards, and issued a new set of standard for purposes of reflecting the changes in global business practices, economies of the world, and markets. The new rules are, consolidated financial statement (IFRS 10), joint arrangements (IFRS 11), disclosure of interests other entities (IFRS 12), separate financial statements (IAS 27), and revised associates and joint ventures (IAS 28). The consolidated financial statement (IFRS 10) was created for purposes of outlining the presentations of a consolidated financial statement. This rule requires business organizations to consolidate the entities that are under their control, and this includes giving them the rights of variable returns, and the capability of affecting the returns acquired over an investee (ACCA, 2012). On this basis therefore, the rule was created to institute the values that will guide the preparation of consolidated financial statements when one business organization controls one or more business organizations (ACCA study text, 2011). This rule was created for purposes of defining the concept of control of a business entity, and as a basis of consolidation. ...
Download paper
Not exactly what you need?

Related papers

Financial Reporting and Analysis
Favourism on one party over the other which is intentional should not exist concerning the information on financial reports. The financial statements will henceforth, provide a balanced scorecard to all the parties I relation to the effects of the transactions. b) The Board may be required to abandon neutrality and establish standards of reporting that conceals the particular transactions impact…
Financial Reporting and Analysis
NBA franchise and other intangible assets have a value of $164,703 $164702 and $165 035 in years 1996, 1997, and 1998 respectively. This shows that the method of amortisation reflect the pattern of the usage of assets in generation of income. NBA intangible assets are defined in cost less amortisation that has accumulated. Straight line method spread over the useful estimated lives of the…
Financial Reporting and Analysis
The LIFO reserve calculation in inflationary environment where the value of FIFO is higher than the value of LIFO inventory is LIFO Reserve=valuation by FIFO –valuation by LIFO. In a deflationary environment, LIFO Reserve has a possibility of having a negative balance caused by LIFO inventory valuation being higher than its FIFO valuation. LIFO reserve indicates the value which a business entity…
Financial Reporting and Analysis for Decision Making
There appears no true definition under the ordinance or the HKAS. Most cases require the knowledge of the accountant discretion. When companies comply with the Company’s Ordinance the HKAS depicts the situation as true and fair. The moment there appears a problem; the term comes straight from the legislative or the investment discretion (Oporowski, 2005). Hong Kong citizens tend to analyze the…
corporate reporting
It is also about the organization and the recognition of what the economy is now, and what the economy ought to be in the near future. Corporate governance explains the types of processes and the ways in which companies and businesses are controlled and directed. They also indicate the level in which the managerial status of company is and include the information containing the board and its…
Corporate Reporting
Rather, it is important that other key steps and approaches are taken towards the need to harness all the components of corporate reporting. In this respect, research has actually pointed to the fact that the regulation of corporate reporting is the key to achieving such benefits (Lang, Raedy and Wilson, 2006). Generally, a regulated corporate reporting is one that is taken from the institutional…
Financial Reporting Case analysis
The Generally Accepted Accounting Principles (GAAP) also play a major role in the solving of the issues at hand (Epstein and Nach 77). The case involving Philadelphia Communications Inc. first of all presents the issue of disclosures before, during and after an Initial Public Offer. Since Philly had just recently completed an IPO, the SEC, FASB and IFRS requirements require certain disclosures…