Financial Statements

Comp ar and contrast the types of information and its value to users, currently provided by the published profit and loss accounts and cash flow statements of UK companies. fiscal statements, as defined by the Oxford Business Dictionary are the annual statements summarising a companys activities over the one-time(prenominal) year... These statements include, but are not limited to the Cash stream Statement, the Profit and Loss Statement (Income Statement), and the Balance Sheet. According to the FASB (The financial Accounting Standards Board), the financial statements of a firm should provide qualified information to be useful to all stakeholders for example investors and creditors. fiscal statements are prepared periodically in accordance with a set of standards known as the generally accepted write up principles (GAAP). These standards provide the framework of guidelines for financial explanation. It includes the standards, conventions, and rules accountants follow in put down and summarizing transactions, and in the preparation of financial statements. GAAP are compel on companies so that investors have consistency in the financial statements they use when analyzing companies for investment purposes.

It covers such things as revenue recognition, equilibrium sheet item classification and outstanding share measurements. Companies are expected to follow GAAP rules when reporting their financial selective information via financial statements as the principles are geared at diminution variations in methods or principles used by the different companies by maintaining a level of comparability. They also ensure that there is expert disclosure of all prepared materials and also that the information produced is finished and meaningful. The mission of the FASB (Financial Accounting Standards Board) is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. Accounting... If you want to develop a full essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.