FINANCIAL JOURNAL

Financial Journal

Abstract

This study is about the advantages of financial reporting. Every company does financial reporting to external and internal users. The global financial crisis has shaken the economies of all parts of the world. Not only was this, the survival of financial institutions in danger. The after effects of global financial crises are hazardous. The survival of many financial institutions and multinational companies is still in danger. The performance of all the companies directly affects all of its share holders. Because of the regulation of financial reporting, the transparency in business operations is made possible. Integrity is very important in financial reporting and corporate governance. The liquidity position of the company is regulated through regulations of financial accounting. The financial reports of the competitors can be analyzed to see the market standing of the company in comparison with the competitors. Financial reporting affects the corporate governance of the company. Systematic risk can be reduced through principle-based regulation, which focuses on the effective functioning of the financial institutions of the company. Since, there is a chain of interconnectedness among the financial institutions. This research is founded on the resultant data. Secondary research was conducted through a no. of sources, including libraries & the Internet. The securitization process has played a pivotal role to reduce the risk in the financial market. There is still a need to increase transparency in few sectors of the financial system.

Financial Journal

Introduction

This study is about the advantages of financial reporting. This topic is chosen because it has considerable importance. Every company does financial reporting to external and internal users. Therefore, what is financial reporting and which benefits it brings to the company and its users is of importance. This paper is aimed to be submitted to ProQuest. This is because it has identified various journals and peer reviewed expert articles. The articles are placed in the expertise examination before publication. This topic, i.e., financial reporting is important can be added in the financial journals.

Literature Review

The global financial crisis has shaken the economies of all parts of the world. The international financial collapse started in the mid of 2007 and proceeded until 2008. The stock markets have fallen immediately in different parts of the world. Not only was this, the survival of financial institutions in danger. The uncertainty and risks in the business transactions exceeded beyond imagination and, one after another, many businesses failed. Therefore, the governments of all nations had huge pressures to come up with a strategy to reduce the hazardous impact of the financial crises. Not only has this, the after effects of the financial crises still had a profound impact on the global market (Cracknell 2009, 1).

Regulation of Financial Reporting

The after effects of global financial crises are hazardous. The survival of many financial institutions and multinational companies is still in danger. The uncertainties and risks in business transactions are very high, which can have a huge impact on the economies of the nations. Therefore, financial regulations are very essential to track the performance ...