FINANCIAL ANALYSIS

Contemporary Financial Accounting

[Name of Student]

Contemporary Financial Accounting

Introduction

The study provides a broad and critical review of the analytical techniques utilized in defining the critical accounting methods. The main purpose of the research paper is to highlight the concerns that have been raised by regulators including the Financial Reporting Council (FRC) in the UK and to determine a piece of standard technique which describes the whole picture in a descriptive form. The paper critically analyzes the quality of voluntary narrative disclosure which identifies the future gaps (Abrahamson & AMIR, 1996, pp. 23).

Financial Disclosures at Dixon Plc

Gibbins, Richardson and Waterhouse defines the definite financial disclosure as one of the financial indication and a reason to align it with financial reporting council (FRC) Financial Reporting Council and the financial information which is useful; for the users of these statements, be it qualitative or describe only the qualitative facts and figures. Research on the quality of narrative information is of great interest to users, accounting professionals and regulators. Among other issues, the study of the contents presented currently, usefulness or scalability of information content are important for understanding the factors that enable the solution of the problems of lack of relevance of traditional financial reporting. In this study we sought to determine whether the information submitted by the Spanish companies is likely to meet the demands of users, and if you meet the requirements and recommendations of various regulatory agencies towards achieving its greatest utility. The results are not optimistic. It notes that the information is fundamentally historical and generally is poorly quantified. Moreover, in many cases merely repeats or unimportant data and other documents provided, which not only does not improve the quality of information, but, on the contrary, to reduce its clarity worsens.

Literature Review on Narrative Reporting

Ball and Foster in 1982 analyzed that there is a vacuum in respect of economic theories that underpin research in financial difficulty, noting that the research techniques such as descriptive and in-depth analysis of a company is widely used for the accounting disclosures.

Evidence cited in research Schipper in (1991) suggest that disclouse of the accounting records for a company seems to be its competitive edge in the market using it a company can retain its business relations as well as with all the related stakeholders.Albert and John (1997 and TAFFLER & SMITH, 2000), explained the disclosure as a descriptive analysis of the company reporting which highlights its financial standing as well as make it evident upon the investor that they are maintain the financial records and company reports sales of analysts conclude that the descriptive sections of the annual report (a letter from the president, the discussion management and analysis [MD & A] etc.) provides nearly twice the amount of information than the aforementioned basic financial statements. On average, the narrative sections of annual reports they studied contained no less than 40 percent of the information cited by its analysts.

Bryan in (1997) investigated the association between narrative disclosure of the annual report with the ...