The financial reporting is a process that involves the presentation of an organization final financial report in accordance to the Generally Accepted Accounting Principles (GAAP). Preparation of financial reports is for both external and internal users. Financial reports prepared include the statement of cash flow, income statement and balance sheet. It is a legal requirement for companies to publish its financial reports at the end of every financial period usually at the end of the year and quarterly. We are here to provide you with affordable financial reporting assignment help and also finance assignment help.
Financial reporting is a compulsory field of study for financial accounting assignment help students. Our team is well versatile with different financial reporting standards and has rich experience in academic writing. Our main focus is to provide financial reporting assignment help to students that will assure them good grades at the end of their coursework. Good knowledge of financial reporting is key to solving financial management assignment.
Purpose of financial reporting Assignment Help
The general purpose of financial reporting is to reflect the true financial performance of a company. Management is able to make informed strategic decisions with the aid of financial reports. The management can pinpoint the areas of strengths or weakness and devise appropriate course of action. Third parties like the government, creditors and shareholders also use the financial reports to safeguard the interests of their final decisions. This means that the financial reports control the relationship between the company and outsiders.
Generally Accepted Accounting Principles (GAAP)
According to investopedia website, accountants should adhere to set standards, principals and procedures while preparing financial statements. It is a requirement by the international financial reporting standards that financial reports especially of firms in the same industry should be comparable with each other. GAAP lays down the standards and procedures for use in presenting the financial reports. It is a legal requirement that financial reports preparation of a company are in accordance to Generally Accepted Accounting Principles. There are more than forty GAAP standards, some of the most common include:
Accrual accounting principle
According to this principle, recording of revenues and expenses take place when incurred regardless if payment is done in cash or transaction is made on credit. The objective is to allocate revenue or expense to the period earned or incurred. Common accruals include depreciation, inventory, accruals and prepayments.
Historical cost convention
The historical cost convention requires that recording of original cost of an asset should take place when preparing the balance sheet. This is despite the lifetime of the asset or the accrued depreciation incurred.
Going concern concept
The going concern concept assumes that the company life is continuous at the time of presenting the financial reports. This means that the company is in a position to meet its current debts when they fall due. Violation of this accounting concept will mean that the business will have to undergo liquidation. This happen in order to meet the creditors’ obligation.
Consolidated financial reports
In a case of a group company which is made up of a parent company and a number of subsidiaries, the company statements should be made on consolidated basis. The final financial report combine all the subsidiaries plus the parent company and present it like a single entity.
Annual reports for a company
The annual financial report is made up of three main documents, they include the following;
This forms the first part of any financial report and is inform of a letter from the director to the shareholders. This letter addresses three main issues which are; directors comment on the performance, assessment of the immediate future and company policies and strategies developed to address the future challenges.
The second part of the financial report consists of the financial statements. Each financial statement will come with footnotes or explanations of items contained thereof. The notes provides with a detailed explanation of the company accounting policies and how the company handle different financial items. The main financial statements include:Balance sheet- representing the company financial position at a specific time by reporting capital, assets and liabilities.
- Income statement- showing the income or loss made by the company in that period
- Cash flow statement- this is a report of significant cash flows that have an effect on the company cash balances.
- Audit report
The auditor report is an indication that the financial reports are in order in accordance to the set accounting standards. Also that the financial statements is a reflection of true position of the firm. It’s a requirement to include an auditor report in order to eliminate cases of misleading financial reports.
Financial reporting assignment help
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