FINANCIAL REPORTING & ANALYSIS Essay Example | Topics and Well Written Essays - 2000 words

FINANCIAL REPORTING & ANALYSIS - Essay Exampleent by winning into consideration the concepts of capital maintenance and also analyse the general purpose of financial statements while considering the information provided in the key components of financial statements.In a wide systems-based perspective, an organisation is part of a much broader social system the entity is presumed to be persuaded by, and, in effect, to have power on, the society wherein it operates (Rudionien 2006, p. 52). Therefore, an organisation must hand attention to the expectation of specific users of accounting information so as to gratify the interests of all users (customers, employees, suppliers, capital providers, all users, regulators and foreign suppliers and customers) in order to carry information for their decision-making. Stakeholders need truthful and informative accounting information for them to make the accurate decisions (Rudionien 2006, p. 52). Enterprises financial accounting regulation (as an entity of accounting methods, principles and rules utilise for accounting and preparing and presenting financial statements) making process, according to Deegan (2003, p. 19) is vital, not just for the firms management, but for stakeholders, as well, who utilise the financial accounting data. Nevertheless, there is an opposition relation in that stakeholders interests might persuade a firms financial accounting law-making. The key elements of financial accounting law-making, according to Deaconu, Nistor, & Popa (2009, p. 40) atomic number 18 financial accounting polity selection, as well as its full disclosure in financial statements. The full disclosure financial accounting policy in financial statements is significant for stakeholders, as well financial statements must be made, not just for regulators and investors, but also for other significant and non-significant stakeholders in order for a company to feel accountable in the community or society where it performs. Stakeh olders require truthful and informative accounting