Our article on ‘Financial Reporting’, offers necessary and precious information about ‘what is financial reporting’, financial reporting requirements, purposes of financial reporting, and the great importance of true and fair financial reporting. Giving proper and elegant financial reporting definition, before proceeding further and deeper, would be greatly welcome!
The Financial Reporting is presenting accurate and proper reports about all financial transactions and dealings made by the company during the specified time period, in order to know and show the true financial status and performance of its business. This financial reporting is essential for evaluating the real performance of any business, and devising policies and strategies for further development and growth. In general, any corporate financial reporting for the given time period, covers four main categories of financial accounting reports. These are the Balance Sheet, Statement of Profit and Loss, Statement of Cash Flows, and Equity Statement. At international level, such financial reporting is to be made in accordance with the International Accounting Standards Board (IASB).
Periodic and regular financial reporting is compulsory for the best possible financial management, and the overall management of all business activities, policies, and growth strategies. The financial reporting and statement must reflect true and fair view of all financial and business affairs of the company or corporation. Such financial reporting offers clear understanding of company’s business to the potential investors, shareholders, and clients and customers, for unflinching trust and fortified reliability. Again, all financial reporting statements must be made in strict and close compliance with all concerned regulating laws under the pertinent jurisdictions. Our organization is one of the worldwide prominent service providers to the corporate and profession sectors, and provides well-rounded services and advice to them. So, we essentially offer exquisite services for financial reporting, together with expert and discerning financial reporting analysis, in India and other countries of the world. All the laws and regulations associated with financial reporting are dealt with in the below section.
The financial reporting is governed and regulated by the statutory and common law, accounting and taxation regulations and guidelines, industry practices, and corporate policies, and must be prepared in accordance with the recognized ethical standards. For international dealings and transactions, these financial reports and documents must be made as per the recommendations of the Securities Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB). The most important characteristics of standard financial reporting are - clear understandability, inducement to reliability, elevated relevance, and easy comparability.