Accounting Articles



Accounting Articles

Introduction

Financial reporting - a set of indicators of accounting, as reflected in the specific form of tables and characterize the movement of assets, liabilities and financial position for the period. Financial reporting is a system of data on the company's financial position, financial results of its operations and changes in its financial position and shall be based on accounting data. The main purpose of financial reporting is to provide information about the financial condition, results of operations and changes in financial condition of the company. Reporting should include information about the company's assets and liabilities, results of operations, events and circumstances that change assets and liabilities.

This information is a wide range of users in making economic decisions. It should be noted that the tasks assigned to the financial statements in different accounting systems are the same. Users of financial statements may serve investors, employees, creditors, suppliers, customers, government agencies and other members of society. All users have different information needs. In this report, I am going to analyze different articles related to strategic accounting and financial reporting issues in business world.

Discussion

Article 1

The first article is “The need to build sustainable value-added reports: Seeking out ways to enhance the Report's Managerial Accounting Information” published in International journal of business and social sciences in May 2012. Accounting's fundamental purpose is to provide information that is useful in making rational investment, credit and overall good business decisions. The issue at hand is financial reporting, its usefulness and its relevance. As such, calls have been made for companies to become more responsive to users, and to move away from the culture of secrecy (Raghunandan, et.al, 2012). In so doing, it provides a lens through which users can perceive and understand the wealth generating activities of a company and the results of those activities. The American Institute of Certified Public Accountants' Special Committee on Financial Reporting (known as the Jenkins Committee), the CFA report and the ACCA have recommended that companies enhance the utility of financial reporting by using a business model that provides investors and creditors with more information than what is currently being reported. It is believed that creditors and investors will be better served in making informed decisions if they are given access to the companies' database that contains operating data, performance measures and forward looking information (Raghunandan, et.al, 2012).

This article addresses some of the financial reporting issues and highlights the Jenkins' Ten elements of the Comprehensive Model of Business Reporting with the aim of focusing on two key areas that are not currently disclosed by management. It also examines the need for sustainable reporting and identifies the “must-haves” of sustainability business reports as recommended by the Waikato Management School (New Zealand). The paper evaluates whether the existing financial reporting requirements of firms within the private sector of Trinidad and Tobago should be more responsive to the needs of creditors and investors given the articulation in the Jenkins Report, which was developed, based on the United States ...