This website uses cookies to ensure you have the best experience. Learn more

Describe Financial Reporting And Discuss How It Is Miused.

1190 words - 5 pages

IntroductionFinancial reporting is the issuance of written documents in the form of the financial statements by the companies to the shareholders and other interested parties. 'The objective of these financial statements is to provide information about the reporting entity's financial performance and position that is useful to the wide range of users for assessing the stewardship of the entity's management and for making economic decisions.'To be 'useful,' this information must be 'represented faithfully, should be complete, prudent and free from material errors.' The purpose of imposing regulations on accounting practices and setting standards is to fulfil the objectives of financial statements.Need for Standards and LegislationIt was difficult for investors and other stakeholders to make reasonable comparisons between two or like firms when no legislations were enforced or any standards set. To change this the companies act was introduced and enforced in 1989.The accounting concepts are guidelines which ensure that a firm is able to report it's finances clearly and truthfully, giving an accurate account of the business at at a certain time. The accounting standards that followed the guidelines of this law included the principle of prudence, consistency, accruals and matching, and going concern (approved code of accounting practice). These four concepts ensure that firms now have a foundation to improve their accounts reports. Different users use financial statements for differents things.. 'Financial statements should allow a user to make predictions of future cash flows, make comparison with other companies and evaluate the management's performance.' Firms should provide relevant and reliable information to it's investors if it wants to be able to analyse it's progress and analyse it relating to it's competitors. Comparisons on progress would be distorted and valueless if firms employ accounting policy at random. Financial information is imperative for the government to calculate the amount of tax that each firm should pay this gives firms an incentive to lie about their profit by underestimating it and to evade taxes by using various accounting tools. Many firms are quite big which causes lack of integration between mangement and ownership of the firm, leading to controversial interests between them, this as expected would cause the management to be reluctant to publish any thing bad in order to minimise any threat to their jobs, this arises the need to use regulation to overcome such problems.ScandalsWe have witnessed some of the most horrendous corporate failures, frauds and audit letdowns in the near past by the hands of heartless leaders of some of the most renowned companies in it's field.We've all heard of the failures of the Texan energy giant Enron who faked success by inflating their profits and using cunning fraud and accounting malpractice. The ruthless leader of Enron Arthur Anderson gave the financial company the impression that...

Find Another Essay On Describe financial reporting and discuss how it is miused.

Ethical And Legal Obligations of Financial Reporting

1214 words - 5 pages The FASB, SEC, and PCAOB Ethical financial reporting is critical to ensure consumer confidence within an economy. Accounting entries record cash transactions in the form of financial reports. Financial reporting is used to interpret and analyze business activities for the purpose of investing and efficient management. Misrepresentations, whether intentional or accidental, can send the wrong signal to interested parties resulting in wrong

Describe one process theory of motivation- why is it a process theory? What are the features and how does it apply to the workplace?

806 words - 3 pages behaviour or perceptions.Most subsequent studies, however, have found that predictions from equity theory are supported best in conditions of underpayment, since the threshold for experiencing overpayment is high and feelings of overpayment do not appear to last very long. This is perhaps because we find it easier to rationalize why we should be overpaid than underpaid.Additionally, if enough people in a workplace share the feeling of underpayment

Explain fully why it is essential for organisations to continually train and develop their employees. How can the benefits you describe be measured?

2563 words - 10 pages consumption-orientated production.(P.Teague). This means that instead of having a single product marketed to the whole market we now have a vast selection of different products marketed to niche markets.(S. Birley) It is difficult for niche markets to utilise economies of scale, and there is also a high requirement for flexibility since the company may have to switch the production to an alternative product. As technology advances, new, faster

John Milton, 'Paradise Lost Books One and Two', title - 'Milton's is a highly visual representation of hell. What does he describe? How does he describe it? What purposes do his descriptions serve?'

1937 words - 8 pages Although it has been suggested that Milton's depiction of Satan is unconventional in that it is sympathetic towards him, the same cannot be said for his portrayal of hell. His descriptions, made up of incomparable metaphors, are striking and forceful, yet the interruptions of Satan's speeches of determination allow the readers to explore how it might feel to actually be in hell. Milton puts emphasis on the negative aspects of change through

Describe stream of consciousness and how it relates to the James Joyce stories "Araby" and "Eveline."

728 words - 3 pages into struggle. The story then goes into the hardships of the characters and how they strive to accomplish the obstacles in their way. Finally, when it seems that they are in the clear, something comes out of the blue and the stories end in sadness or sorrow. The things that they had worked so hard to get would now be diminished which made the character would feel worse.His topics had intertwined with the use of struggle inside the character. With

EDGAR ALLAN POE: LIFE AND WORKS This is about the life and the works of the poet edgar allan poe, i basically describe his life and how it effected what and how he wrote

1341 words - 5 pages symbolic presence, a visitor from the external world and an emblem of the darkness of grief within the speaker's soul."(Bloom 49) It could be something that may remind him of Virginia or an obstacle in his life. The poem represents Poe's need to remember. Silverman explains that:In several details "The Raven" seems to illustrate Poe's own irrepressible need to remember. There is no telling just how much Virginia's progressive illness and his

Discuss what is global warming. And the effects that global warming gives and how to prevent it. And a little history on global warming

1109 words - 4 pages What is global warming, and how is it affecting the Earth and its inhabitants? Global Warming is sometimes referred to as the greenhouse effect. The greenhouse effect is the absorption of energy radiated from the Earth's surface by carbon dioxide and other gases in the atmosphere, causing the atmosphere to become warmer. The greenhouse effect is what is causing the temperature on the Earth to rise, and creating many problems that will begin to

Success and how it is viewed

709 words - 3 pages born with. And we assume that it is those personal qualities that explain how that individual reached the top” (Gladwell 18). Gladwell is right that people do tend to define success by traits of a successful person. America is recognized for defining success by the things that money can buy such as our fancy cars or designer clothes. In life, the true indicator of success is the effectiveness at the task, the joy of profession, and overall making

Guilt and How it is Handled

655 words - 3 pages person feel guilty for being afraid, he uses it to his advantage to avoid the guilt he feels about running away. People should express their emotions and not keep them bunched up inside, or it will lead to their demise. Guilt affects each individual differently and how they react to it can change their life drastically. The individual has to realize that once the event has happened, they can not change it so there is no need to drive themselves

Communication and How Important It Is

930 words - 4 pages these people that you never speak to or look at as a negative sense, has the ability to change your life! So what I say to you is simple, listen to every person that you come across. For whatever reason you have come into contact with this person has an experience that you may have gone through or you may never go through. Either way, they have something to teach you and the possibility of change is at every corner and it is only within yourself to

Lehman Brothers´s Banking Firm and Unethical Financial Reporting

676 words - 3 pages The Lehman Brothers, an investment banking firm filed for bankruptcy in September of 2008 due to poor financial choices. The company made many bad decisions because of their greed and unethical decision to manipulate the books. The lack of success by the Lehman Brothers shows that it is imperative to be self-evident with financial reporting. The bankruptcy shows that they failed to use factual figures by disguising their actual financial

Similar Essays

Describe Selective Attention And Discuss Its Functions, How It Can Be Controlled And Ways Of Investigating It

1155 words - 5 pages Selective attention is very important in our daily lives, but we are often unaware of how it really works. Therefore, it is worthy to explore its characteristics and functions, ways to control it and investigation methods.Selective attention, also known as focused attention, mainly controls our awareness of particular categories or entities in our environment. When it is involved, we focus entirely on one stimulus and ignore others (Elizabeth

Technologies And The Family Genetic Engineering Discuss How Four Types Of Genetic Engineering Can Assist With Human Reproduction. State And Describe How Each Process Is Performed

1590 words - 6 pages background, as does an adopted child? Two major questions, which cause much controversy and derive mainly from the church are, "Should the embryo as a unit be used for research purposes?" and "does the embryo have the right to life?" Many churches, including the Catholic Church have come to accept certain forms of reproductive technology. IVF is not one of them. Most religious groups maintain that IVF is an unnatural process as it interferes with the

• Describe In Detail What Is Meant By The Term “Service Oriented Architecture” And Discuss What Challenges It Presents To A Systems Developer

613 words - 3 pages possibility of implementing similar functionalities across applications, increasing the development effort, code duplication, maintenance and are hard to change. Since these applications are monolithic in nature, it is difficult for them to scale; for instance, if a particular functionality requires more processing power other functionalities that live within the same application, will suffer due to the lack of resources available to them. SOA

Chapter 1 Financial Reporting And Accounting Standards

7652 words - 31 pages , and profit center reporting. 3. Financial statements generally refer to the four basic financial statements: statement of financial position, income statement, statement of cash flows, and statement of changes in equity. Financial reporting is a broader concept; it includes the basic financial statements and any other means of communicating financial and economic data to interested external parties. 4. If a company's financial performance is