Category Archives: 4.1 Annual Report

Importance of financial reporting

Importance of financial reporting arises from the needs of the investors, employees, suppliers and other stakeholders of the company; it arises from the needs of those who are somehow dependent on the performance of the entity. It may not be dependence how you’ve accustomed to see it, i.e. without the company they could not exist, however its dependence in the way that they have results, their everyday life depending on how your company is doing.  Continue reading

Information that comes available after year-end but before submitting the Annual Report

I don’t know why accountants think that if the year is closed, it’s closed. It has happened quite often that I have to explain that if the information becomes available after the year-end but before you’ve submitted the Annual Report, this information is to be included within if it’s relating to the previous year.

It’s not only to be included within the report, but also in the financial statements if need be – depending on the information that become available.  Continue reading

When it isn’t offsetting?

On the face of balance sheet and income statement there are certain items which are never considered as offsetting for certain items (something that’s not allowed on most cases as we’ve pointed out in one our posts about offsetting), but compulsory to be included within certain line item groups. If anything, it’s called netting.  Continue reading