Provide Financial and Business Performance Information



Provide Financial and Business Performance Information

Task 1 - Part A: Portfolio: Business and Financial information

In today's business, decisions are made on the financial information of the company for the proper conduct of the management process. The financial analysis method allows the company to make effective decision and this decision directly impact on the operations and on the investors. Given the recent events of what can be termed as the biggest bankruptcy of the capitalist world, such as Enron and Worldcom case, has made the current business environment and investors perception changes (Zager K., Zager L., 2006).

Public accountants play an important role, perhaps today more than ever, from different perspectives, either as business accountants, executives, auditors, tax auditors, financial advisors, etc and are called to restore confidence business, information and belief, that anticipates the future, and identify risk factors to prevent situations how are you. However, accountants are exposed to manipulations of management, to present financial information which are often as a convenience, and this is where I draw attention as the figures of the financial statements are the product of management, that is, we reflect the country's business culture (Piotroski J., 2002).

This is why the task of translating and adapting a document issued to the AICPA and the Big Five, which can help in this task of presenting reliable, which counters must be faithful, and should be our creed, and to determine risk factors to help readers of financial statements to obtain all relevant information, to get a clear and complete state of the company at any given time (Business, company and financial information, 2004).

Business and Financial information provide a clear picture of how the role of high-quality financial reports with relevant information to current financial reporting environment can change and impact on the expectation of the client and their objectives. This includes an assessment of risk factors that may be important for preparing financial statements; auditors and audit committees to consider during the current cycle of information. It also offers the suggestions on how each of these important groups can help to improve financial reporting for the benefit of investors (Liang, L. 2010).

In case of sale of a company or a division is necessary to provide a thorough report that the present economic situation - financial assistance to potential buyers. This report is called vendor due diligence. The buyer relies on the vendor due diligence that has an independent view of the business, both from a historical point of view of performance than future plans. To ensure an efficient sales process, the seller must present to potential buyers in their financial information more transparent as possible. An independent analysis provides comfort to the prospective buyer about the quality of business and the soundness of its cash flow. The Vendor due diligence is a thorough report on the health of a company for sale. This allows the seller to maintain more control over the sales process and timing of completion of the transaction ...