COMPREHENSIVE BUSINESS REPORTING MODEL

A Comprehensive Business Reporting Model: Financial Reporting for Investors

A Comprehensive Business Reporting Model: Financial Reporting for Investors

Introduction

The business reporting model is the way through which the investors perceive what basically business is and what is the plan of the business. The success or the failure of the model depends on its capacity to communicate these activities completely and clearly to the end users. Business continually changes over time by entering into new markets or by leaving the old one. The Businesses are constantly developing new products and leaving the old outdates products. Same is the case with the type and level of service provided.

The company's also make use of the model for attracting new customers and retaining the old customers (Elliott & Elliott, 2008). This gives the company a chance to grow and grow at a good speed. These changes in the business practices over a period require from us that we should make use of model in a way that best meets the requirement. The business model should be up to date and that they should evolve so that it can meet the needs of the investors, this will provide the investors the opportunity to evaluate investment and make financial decisions in the best possible manner.

Discussion and Analysis

New Approaches to the Financial Reporting

There are several opportunities which exist through which improvements can be made in the financial reporting models. These improvements can be made in the models keeping in view the changing financial markets and the changing investment scenarios. In the financial reporting model we have seen that in the last decades there has been a great uproar in the world financial markets for increased transparency due to various scandals (Lee & Humphrey 2006). These scandals have caused billion to the investors and the other concerned parties like suppliers and creditors. Thus, information should be provided by the companies which the management is not willing to supply them. The writer of the report feels that the investor will be best served if the revisions to the financial models are more fundamental rather than the cosmetic changes and other superficial acts (Lee, 2006). As it has been seen that various changes have been witnessed concerning the operation of the business, that is the businesses are now engaged in the other activities like providing services while keeping up with its operations. Thus the writer feels that complete information concerning the company's operations is to be provided to the end users.

The CFA authorities are also advocating for a change, they are saying that the future accounting standards are to be created keeping in view the investors interest. In other words the financial statements of the company are to be created in a way that the interests of the investors are kept on high priority. This is because we have noticed that the investors are the one who suffer the most in case of not providing information.

As the common share holder of the company is ...