Difference between revisions of "Financial Reporting"
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The focus of financial reporting is primarily on clarifying the context of past, current and potential future [[Return | financial returns]] for any external parties that hold claims on the entity. This is achieved by: | The focus of financial reporting is primarily on clarifying the context of past, current and potential future [[Return | financial returns]] for any external parties that hold claims on the entity. This is achieved by: | ||
* explaining the amount, timing and uncertainty of [[Cash Flow]] linked to the entity's operations | * explaining the amount, timing and uncertainty of [[Cash Flow]] linked to the entity's operations | ||
| − | * disclosing (selectively) some aspects of the management of the entity’s economic | + | * disclosing (selectively) some aspects of the management of the entity’s economic [[Resources]] |
Revision as of 13:06, 6 September 2021
Definition
Financial Reporting is the provision (Disclosure) of financial information produced by Financial Accounting activities of a reporting entity. The purpose of that Reporting is to provide useful (e.g., actionable) information to existing and potential investors, lenders and/or other creditors and stakeholders of the organization.
The focus of financial reporting is primarily on clarifying the context of past, current and potential future financial returns for any external parties that hold claims on the entity. This is achieved by:
- explaining the amount, timing and uncertainty of Cash Flow linked to the entity's operations
- disclosing (selectively) some aspects of the management of the entity’s economic Resources
