FINANCIAL REPORTING

Financial Reporting

Financial Reporting

In the United States, it is mandatory for all the publicly-traded firms to report revenue growth, income growth and earnings per share (EPS) every quarter. The reason behind such obligation is to monitor the financial performance of publicly-traded companies and to encourage a transparent accountability mechanism in these firms so as to enable them to implement the best practices model. In recent years, the demand for corporate accountability has increased dramatically (Brigham, 2008).

At the same time that the demand for accountability has increased, the usefulness of traditional financial statements is being questioned. While financial statements ...