Asked by: Mathilde Friedenthalbusiness and finance business administration
What is the goal of financial reporting?
Last Updated: 17th March, 2020
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Herein, what is the purpose of financial reporting?
According to International Accounting Standard Board (IASB), the objective of financial reporting is “to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.”
Also, what are the benefits of financial reporting? Here are three important ways financial reporting can help your small business.
- Decision-Making Mechanisms. Financial statements give you great decision-making tools.
- Getting Credit When You Need it: One of the Key Benefits of Financial Reporting.
- Financial Reports Help You Remain Compliant.
Herein, what is the objective of financial reporting quizlet?
The Objective of Financial Reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors in decisions about providing resources to the entity.
What are the different types of financial reporting?
There are four main types of financial statements, which are as follows:
- Income statement. This report reveals the financial performance of an organization for the entire reporting period.
- Balance sheet.
- Statement of cash flows.
- Statement of changes in equity.