Financial reporting.

Financial reporting: practices that help summarize the financial information of the company and provide a honest and transparent view of its financial situation and performance to the stakeholders.
Stakeholders include owners, managers, employees, investors, institutions and  government who need the valuable information offered by financial reports about investments, credit extensions, cash flow in… to be able to make good informed decisions towards the business.

   Financial statements:
Financial reports include 4 documents called financial statements:
Balance sheet: a statement that shows the value of a company’s assets and its liabilities.
Income statement: a document that shows a company’s profit or loss in a particular period of time.
Cash flow statement: a document that shows the money coming into and going out of a company during a particular period.
Statement of charges in equity:  includes profits or losses from operations.
These various documents serve the objective of looking at the company from different angles to give the reader a complete and well-rounded view of its  financial situation and performance .

The benefits of financial reporting:
. Provides managers with important information for planning and decisionmaking.
. Provides investors, dept providers and creditors with information to help them make rational prudent decisions about investments and dept.
. Facilitate the statutory audit.
. Improve dept management by tracking the assets and liabilities.
. Improve financial efficiency over the time by relying on the accurate and robust data served by the financial reports

The IFRS :

The international financial reporting standards, are some accounting standards issued by the IASB (international accounting standards board) so that financial statements can be consistent, transparent and comparable around the world.
These are the IFRS norms as set by the IASB:
IFRS 1 First-time Adoption of International Financial Reporting Standards

IFRS 2 Share-based Payment

IFRS 3 Business Combinations

IFRS 4 Insurance Contracts

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations

IFRS 6 Exploration for and Evaluation of Mineral Resources

IFRS 7 Financial Instruments: Disclosures

IFRS 8 Operating Segments

IFRS 9 Financial Instruments

IFRS 10 Consolidated Financial Statements

IFRS 11 Joint Arrangements

IFRS 12 Disclosure of Interests in Other Entities

IFRS 13 Fair Value Measurement

IFRS 14 Regulatory Deferral Accounts

IFRS 15 Revenue from Contracts with Customers

IFRS 16 Leases

IFRS 17 Insurance Contracts

IAS 1 Presentation of Financial Statements

IAS 2 Inventories

IAS 7 Statement of Cash Flows

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

IAS 10 Events after the Reporting Period

IAS 11 Construction Contracts

IAS 12 Income Taxes

IAS 16 Property, Plant and Equipment

IAS 17 Leases

IAS 18 Revenue

IAS 19 Employee Benefits

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance

IAS 21 The Effects of Changes in Foreign Exchange Rates

IAS 23 Borrowing Costs

IAS 24 Related Party Disclosures

IAS 26 Accounting and Reporting by Retirement Benefit Plans

IAS 27 Separate Financial Statements

IAS 28 Investments in Associates and Joint Ventures

IAS 29 Financial Reporting in Hyperinflationary Economies

IAS 32 Financial Instruments: Presentation

IAS 33 Earnings per Share

IAS 34 Interim Financial Reporting

IAS 36 Impairment of Assets

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

IAS 38 Intangible Assets

IAS 39 Financial Instruments: Recognition and Measurement

IAS 40 Investment Property

IAS 41 Agriculture

According to the IASB, 144 countries around the world adopt these norms .

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