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
International Financial Reporting Standards (in short IFRS) are describing contingent assets as “possible assets that arise from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity”. Continue reading
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
No doubt there are generally accepted forms for showing your company’s balance sheet, income statement etc. in your country. They may be state enforced or just used by companies and as such they’ve become sort of generally accepted. Continue reading
As a general rule, comparative information should always be given within the financial statements and its notes. When it comes to comparative narrative information, the same applies – it’s usually given, unless it’s no longer relevant. Continue reading
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