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ST10299-FR-Presentation.pptxFinancial Reporting
Anas Alzadjali
ST10299
Roslin Lazarus
Introduction
Financial reporting is the declaration of the financial details to the divergent stakeholders concerning the financial operation and the financial position of the firm for a specified period of time.
Financial reporting standards are the keys that defines the practice standards and financial accounting policies and performs as its basis.
Enhances the financial reporting openness in an international position.
Performs as the accounting end product.
Components of the financial reporting include;
The Financial statement
The Financial statement report
The prospectus
The Management discussion and analysis
The objective of the project is to comprehend the context of the financial reporting levels and the difference of the regulatory structure of financial reporting in Singapore, India and Oman. A few of the stakeholder that might benefit from the details given by financial reporting are government agencies, investors, government, creditors, debt providers and public.
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Discussion: Elements Of Financial Statement
The financial statement elements are;
Expenses
Assets
Equity
Revenues
Liabilities
Income statement, change in equity, income statement, balance statement are added in the financial statement.
Financial statement comprise the critical report of the business that gives financial information which can be used by the stakeholders.
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Discussion: Financial Reporting Objective
Objective: to provide information concerning the financial position, operation, and also the difference in the economic position of the company that is important for the users in choosing critical financial decision (IASB).
Financial reporting aid in meeting the projection of the user and ensures that all the company use the similar regulations.
Financial reporting is important for predicting the upcoming financial place and cash flow.
Discussion: Financial Reporting Purpose.
The financial reporting purpose is as stated:
Provide data to the firm’s management for analysis and planning
Provides data to the creditors, investors and debt providers that can used for making critical decision concerning to investment
Provides the information to the shareholder concerning the firm’s numerous factors.
Provide data concerning the economic resource of the business and comprehend the differentiation of the resource over the period duration.
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Financial Reporting Purpose.
Provides data concerning the procurement plan utilized by the business and the divergent resources adopted.
Provides data concerning the firm’s performance management and how it performs the role in the ethical way.
Provides information to the statutory auditors that profit in the auditing
Improves the social welfare through evaluating the trade union employee.
The financial reporting assist to offer important information of the reason of benchmarking and making decision. The financial reporting is important for providing data to the public concerning the firm data which can aid during making investment.
The financial reporting assists to claim the resources on the basis of equity and the liabilities of the owner. It assists the stakeholders to comprehend how the company’s performance in particular.
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. Financial Reporting Importance
Assist to be certain that there is obedience with the various regulatory needs and statues
Financial reporting shows to and helps the statutory audit
Financial reporting builds the support system for the design of decision making, analysis, finance.
It advantages the company for contributing the capital in the international and local level
The information comprised in the financial reporting aids to carry analysis of the company and the management.
This assist to satisfy the standards of financing through making sure that the financial statement are tabulated with the government. The financial statements require to be audited by statutory auditors for weighing their opinion.
A few of the stakeholders that will gain from the information provided by financial reporting include; government agencies, investors, government, creditors, debt providers and public.
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Financial report stakeholders’ users
Below are the stakeholders utilizing the financial reporting:
Investors
Employees
Public
Customers
Governments
Management of the firm
Government agencies
Debt providers
Financial reporting for the divergent stakeholders and also the management reporting for the firm’s internal management is critical for the company.
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Variation in Importance of Financial Reporting for Different Countries (Singapore, India, And Oman)
Singapore financial reporting standard (SFRS) is utilized
This is in accordance to international Financial Reporting Standards (IFRS)
Accrual form accounting is among the basic principles
There are contrast between IFRS and SFRS.
Contrast between IFRS and SFRS
Accounting for continuous foreign income
(SFRS) FRS 16 allows the one off amend of the assets
Removal of para 14 and 15
Difference in FRS as contrast to IAS 31, IAS 28 and IAS 27.
IAS suggest that accounting of the postponed tax is meant for temporary difference occurrence from continuous foreign income, the SFRS do not require accounting for the amend foreign income if the system is able to contain the reversal period of the slight differentiation.
One off continuous of the assets is allowed in SFRS that happened during 1984-1996 without requiring the continuous practice of the amend model.
One off reevaluation suggests that the occasion in which the PPE aspect is amend just once in 1984-1996.
Removal of para 14 and 15 that suggest that there is extensive economic life of the land and when the title is expected to proceed to the lessees by the tenure term, then the lessee do not overcome the ownership rewards or risk.
The awarding of consolidated financial accounting and statement is also not the same.
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Variation in Importance of Financial Reporting for Different Countries (India)
Indian accounting standards (Ind AS) is utilized
No formal acquisition of the IFRS by the companies there
There are contrast between IFRS and Indian Accounting Standards
Differentiation between Indian Accounting Standards and IFRS
Differentiation in the units of IFRS and Ind AS
Format of the balance sheet
Demonstration of the income statement
Variations in accounting and the accounting policies
The Indian Accounting Standards is established on the IFRS standards.
Ind AS entails profit and loss, cash flow statement, balance sheet, notes of the financial statement, declaration of accounting policies as the aspect. Whereas IFRS entails of profit and loss statement, differentiation of equity statement, financial position statement and cash flow statement for a period of time as aspects.
Ind AS has no any exact format of balance sheet and only entails guidelines, IFRS contains strict direction for the balance sheet format and needs the aspect to illustrate the assets and liabilities and to classify them as non-current and current items
Inds AS has no exact format for the income and only entails directions, IFRS entails two type of presentation: dual statement or single statement format. The single statement comprise of loss and profit though the dual statement entails segregation of the various aspects of the income statement.
Ind AS authorizes the accounting policy to be modified if there usage of divergent accounting policy but IFRS suggest that accounting policy can be modified when it is a must for IFRS and when result in an amplified suitable financial statement.
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Variation in Importance of Financial Reporting for Different Countries (Oman)
International Financial Reporting standard (IFS) is utilized by all the firms in Oman
Implemented absolutely in accordance to the international Accounting standards Board with no variation
Article 30 instructs the accountants to apply international standards
Article 5 instructs the company which have securities in public subscription to establish financial reports quarterly, half yearly or per annum.
Conclusion
The purpose of financial reporting is to provide information concerning the financial performance position and also the difference in economic position of the company that is important for the utilizers in getting critical financial decisions (IASB)
Financial reporting aids in satisfying the expectations of the user and ensure that all the company use the similar regulations
It is the declaration of the financial information to the divergent stakeholders concerning the financial performance and the company’s financial position for a specific period.
Bibliography
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Pwc.com. 2020. [online] Available at: <https://www.pwc.com/sg/en/illustrative-annual-report-2006/assets/3-comparison.pdf> [Accessed 26 December 2020].
2020. [online] Available at: <https://resource.cdn.ical.org/60915asb49580.pdf> [Accessed 26 December 2020].
2020. [online] Available at: <https://ww.ifrs.org/usearound-the-world/why-global-accounting-standards> [Accessed 26 December 2020]
