Assignment 1

1 Examine the context and purpose of financial reporting, including the regulatory frameworks and governance of financial reporting 1 1 The context of financial reporting 1 1 1 Definition Financial re[.]

1. Examine the context and purpose of financial reporting, including the regulatory frameworks and governance of financial reporting 1.1 The context of financial reporting:

1.1.1 Definition:

Financial report is presentation of the formal record of financial information

of business, including a company’s communication of information or the profit or loss for a particular period.(Cambridge dictionary)

Example of Financial Report:

- Balance sheet

- Income statement

- Cash flow statement

- Statement of shareholders’ equity

1.1.2 The regulatory frameworks and governance of financial reporting:

The regulatory frameworks:

FR must follow the standards:

- IFRS: International Financial Reporting Standard

- IAS: International Accounting Standard

Similar Is the current set of standards that is reflective of

the changes in the accounting and business practices

Differen

t Published in IFRS were publishedafter 2001 IAS were publishedbetween 1973 and

2001

Issued by The International

Accounting Standards Board (IASB), which is

organization

The International Accounting Standards Committee (IASC)

Contradict ion In case of acontradiction, the

principles of IFRS are

consideration

In cases of a contradiction, the IAS

dropped

https://blog.superprofs.com/ifrs/difference-ifrs-vs-ias/

https://askanydifference.com/difference-between-ias-and-ifrs/

1.2 Purposes of Financial Report:

Objects Purposes of Financial Report

Management Show the results of the management's

stewardship of the resources entrusted to it

Users ( such as:

Investors,

government,

shareholders, )

Providing information about the financial position, financial performance and cash flows

of an entity that is useful to a wide range of users in making economic decisions

For example: Providing information to investors use the information to decide whether to invest

2 Analyse the value of financial reporting for meeting organizational objectives and growth

3 Identify the main stakeholders of an organization and assess how the context and purpose of financial reporting meets stakeholder needs and expectations

4 Critically analyze the different regulatory frameworks and governance

of financial reporting for specific stakeholders

5 Give an account of the benefits of international accounting standards (IAS) and international financial reporting standards (IFRS)