Some financial information is better provided, or can be provided only by means of financial reporting other that formal financial statement. Examples include the president’s letter or supplementary schedules in the corporate annual report, prospectuses, reports field with government agencies, news release, management’s forecasts, social or environmental impact statement companies may need to provide such information because of authoritative pronouncement, regulatory rule or custom: or they may supply it because management wishes to disclose it voluntarily
Financial accounting is the process that culminates in the preparation of financial reports on the enterprise for use by both internal and external parties. Users of this financial report include investors, creditors, managers, unions, and government agencies.
Resources are limited. As a result, people try to conserve them and ensure that they are used effectively. Efficient use resources often determine whether a business thrives. This fact places a substantial burden on the accounting profession. Accountants must measure performance accurately and fairly on a timely basis, so that the right manages and companies are able to attract investment capital.
For example, relevant and faithfully represented financial information allows investors and creditors to compare the income and assets employed by such companies. An effective process of capital allocation is critical to a healthy economy. It promotes productivity, encourages innovation, and provides an efficient and liquid market for buying and selling securities and obtaining and granting credit. Unreliable and irrelevant information leads to poor capital allocation, which adversely affects the securities markets and the economy of the country at large. Globalization is occurring rapidly. As economic and other interactions increase among countries, capital markets must provide high- quality financial information. A need therefore existing for high quality financial reporting standards; international financial reporting standards (IFRS) that meet this objective.
Note: This will not change any image colors (logo, icon colors..etc)
