Archive | Financial Reporting

Financial Reporting Framework

Accounting Assumptions: Underlying assumptions for the preparation and presentation of financial statements are accrual and going concern. Accrual assumption: The effects of transactions and other events are recognised when they occur (and not as cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the financial […]

7 Major Limitations of Financial Reporting

The following points highlight the seven major limitations of financial reporting. 1. The objectives of financial reporting are affected not only by the environment in which financial reporting takes place but also by the characteristics and limitations of the kind of information that financial reporting, and particularly financial statements, can provide. The information is to […]

Financial Reporting and Financial Statements

The upcoming discussion will update you about the difference between financial reporting and financial statements. 1. Financial statements are a central feature of financial reporting. They are a principal means of communicating accounting information to those outside an enterprise. Although financial statements may also contain information from sources other than accounting records, accounting systems are […]

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