Paraphrasing needed for 2 papers

AnasZad

ST10299-FR-Presentation1.pptx

Home >Business & Finance homework help >Paraphrasing needed for 2 papers

Financial Reporting

Anas Alzadjali

ST10299

Roslin Lazarus

Introduction

Analysis of different regulatory framework and governance applicable GIC’s investment strategies and current market operations.

Based on the published annual report of GIC for the year 2019.

ASSUMPTION

GIC consider establishing a joint stock company as a part of its expansion plan

This presentation analysis different regulatory framework and governance applicable to GIC’s investment strategies and current market operations based on the published annual report of GIC for the year 2019, with the assumption that GIC is seriously considering establishing a joint stock company with majority controlling interest in Singapore and India as a part of its expansion plan.

Continuation

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.

Definition

Financial reporting : 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: 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

Notes to the Financial statement

The prospectus

The Management discussion and analysis

Elements Of Financial Statement

The financial statement elements are;

Income Statement : Expenses, Revenues, Purchases and Sales

Balance Sheet: Assets , Liabilities and Capital

Cashflow statement: cashflow from operating activities, investment and financing.

Change in equity.

And notes

Financial statement comprise the critical report of the business that gives financial information which can be used by the stakeholders.

The financial statement elements are;

Income Statement covering expenses, revenues, purchases and sales

Balance Sheet covering assets , liabilities and capital

Cashflow statement covering cashflow from operating activities, investment and financing.

Change in equity showing any change in equity over the period

And notes that gives explanations to the statements.

Financial Reporting Objective

Financial statements have been prepared in accordance with: International Financial Reporting Standards (IFRSs),

Applicable disclosure requirements of the Capital Market Authority (CMA)

Relevant requirements of the Commercial Companies Law.

Their objectives are:

To provide information concerning the financial position, operation, and difference in the economic position of the company.

To aid in meeting the projection of the user and ensures that all the company use the similar regulations.

Assist in predicting the upcoming financial place and cash flow.

Financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs), the applicable disclosure requirements of the Capital Market Authority (CMA) and the relevant requirements of the Commercial Companies Law.

The objectives of the financial statements are

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: Purpose Financial Reporting.

Financial reporting is done to achieve the following purposes;

Provide information for analysis and planning

Provides data to the creditors, investors and debt providers

Provides the information to the shareholder

Provide information concerning the economic resource of the business and comprehend the differentiation of the resource over the period duration.

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.

Other purposes are:

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.

Continuation.

Provides information regarding procurement plan

Provides data concerning the firm’s performance management and its impact

Provides information to the statutory auditors

Offers information on the company’s social welfare

Provides information regarding procurement plan 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.

. Financial Reporting Importance

Ensures adherence with the various regulatory needs and statues

Financial reporting assist during statutory audit

Financial reporting builds support system for the design of decision making, analysis, finance.

It ensures the company contribute to capital growth in the international and local level

The information comprised in the financial reporting aids to carry analysis of the company and the management.

Financial statements achieves the following significance when prepared correctly

Ensures adherence with the various regulatory needs and statues

Financial reporting assist during statutory audit

Financial reporting builds support system for the design of decision making, analysis, finance.

It ensures the company contribute to capital growth in the international and local level

The information comprised in the financial reporting aids to carry analysis of the company and the management.

Regulatory Framework And Governance

According to IFRS, financial statement should be prepared observing its requirement such as:

Fair presentation

going concern

accruals

Consistency

Materiality

According to IFRS, financial statement should be prepared observing its requirement such as:

Fair presentation : requiring that the financial statement should be prepared and presented in the prescribed format

going concern meaning the existence of the business should be viewed to the future even beyond the owners

accruals: all expenses and income should the charges in the year earned and incurred but not during the period of paid or received.

Consistency meaning there should be similarity on the treatment of an item from one accounting period to another.

Materiality in the sense that all material information should be considered in the preparation of the financial statements

Continuation

Governance of financial reporting include:

duties and responsibilities of responsible officers

Regulatory frameworks for incorporated organizations in Oman

meeting user expectations

legislation

Governance of financial reporting are obligations that an organization should meet to be inline with the host nations requirements. They are guided by local regulations on:

duties and responsibilities of responsible officers, Regulatory frameworks for incorporated organizations in Oman, meeting user expectations and legislation.

Users of Financial Statements

Below are the stakeholders utilizing the financial reporting:

Investors

Employees

Public

Customers

Governments

Management of the firm

Government agencies

Debt providers

Financial statements and reporting should be done strictly in accordance with the requirement of IFRS and other applicable regulation due to their reliance not only by the internal users but also external user s such as:

Investors

Employees

Public

Customers

Governments

Management of the firm

Government agencies

Debt providers

Variation in Importance of Financial Reporting for Different Countries (Singapore, India, And Oman)

Singapore

Utilizes financial reporting standard (SFRS) in accordance to international Financial Reporting Standards (IFRS)

Accrual Principles accounting is highly applicable.

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.

There exists variation in importance of Financial Reporting for Different Countries (Singapore, India, And Oman)

Singapore

Utilizes financial reporting standard (SFRS) in accordance to international Financial Reporting Standards (IFRS)

Accrual Principles accounting is highly applicable.

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.

India

Applies Indian accounting standards (Ind AS)

No formal acquisition of the IFRS by the companies.

contrast between IFRS and Indian Accounting Standards

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.

Oman

firms in Oman applies International Financial Reporting standard (IFS).

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.

Oman does not have its local accounting standards thus firms in Oman applies International Financial Reporting standard (IFS).

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.

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

. Learn Accounting: Notes, Procedures, Problems and Solutions. 2020. Top 5 Theories Of Equity. [online] Available at: <https://www.accountingnotes.net/equity/top-5-theories-of-equity/5352> [Accessed 26 December 2020].

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]