A study of the basic accounting concepts and procedures underlying the organization and reporting of financial information.
How and to whom do the financial statements make firms accountable? Demo By Russel Stone Uncategorized January 25, Introduction International accounting policies and practices in financial reporting are adopted to create equilibrium within the global context.
Financial reports are important to both shareholders and investors. Financial reports have special Essay corporate social responsibility 3353 2 and target audiences.
Financial reports have seven user groups including equity investor group existing and potential shareholdersloan creditor groups, employee group, analyst-adviser group, business contact group suppliers, trade creditors, customers and competitorsthe government for tax purposes and regulationand the general public that might have political and economic interests in knowing how a firm performed Alexander and Britton 9.
Understanding the contents of financial reports also varies among these different groups. Despite the differences among different users, their economic decisions are similar Young Hence, financial statements serve the information needs of various groups Young To create financial reports, some standards must be met.
An international accounting standard enables investors to examine companies in different countries from a similar perspective. International accounting standards encourage transparency and ensure relevant information is accessible to anyone who needs it Das, Shil, and Pramanil As a result, the transaction cost of conducting business in any part of the globe is reduced Accounting quality significantly improved the performance of firms that comply with IAS.
A more recent study by the same authors documented how the use of the International Financial Reporting Standards IFRS improved accounting quality and reduced the cost of capital. The accessibility and correctness of financial reports are necessary for investors to enable them to discern the performance of the company and decide whether to invest in them.
They also contributed to the current economic global storm that has crippled many markets. If financial reports were written to consider the limitations of such participants, the lack of appropriate knowledge to make right decisions in investing might not be one of the reasons why many lost their money in the markets Ewer Theoretical Underpinnings of Financial Reporting Accountability Stakeholder Theory Stakeholder theory involves a broader range of other stakeholders such as employees, customers, suppliers, bondholders, and the community, among others Feizizadeh Stakeholder theory is managerial because it guides the manager on how to conduct and manage business rather than addressing management and economic theorists.
Stakeholder theory has two core questions: From the stakeholder theory perspective, Mudrack identified several personality factors that are linked to the perception of rightness in corporate reporting and corporate social responsibility Empirical findings revealed that management supporting the Milton Friedman view of shareholder primacy tends to tweak acceptable ethical standards to promote maximization of shareholder wealth qtd in Mudrack This finding is consistent with Friedman, as respondents had no qualms violating ethical standards as long as the action benefits the organization Financial reports should also reflect how management intends to perform its responsibilities to users of the financial report by providing accurate and appropriate information useful in making economic decisions New Zealand Securities Commission 4.
The inclusion of non-financial information that is also useful for stakeholder decision-making is also necessary.
The study also revealed that intellectual capital reporting is vital to encourage companies to be more transparent about their activities. Moreover, the study respondents also suggested that firms that disclose intellectual capital information should be rewarded with higher share prices The inclusion of non-financial information in financial reporting may be viewed by some as cumbersome and an additional expense for the company.
However, the qualitative value of the company based on non-financial information may provide credible evidence that the firm can maximize shareholder value.
Non-financial information is difficult to quantify. Nonetheless, voluntary disclosures of non-financial information should be present in financial reports. Incorporating stewardship information in the financial report is vital because the report is the best communication medium through which the company interacts with its shareholders and others that might be interested in the activities and performance of the company Lennard Ethical Issues Essay; Ethical Issues Essay.
Words Mar 15th, 14 Pages. Show More. Besides to the social and legal dilemma it creates, elder abuse, neglect or also known as elder mistreatment is a massive health care crisis that can lead to long term health complications and even death (Fulmer & Greenberg, ).
fulfill all of. Shanghai luxury hotels review for business, corporate meetings and fun, and a new 45km Bund trail, by Amy Fabris-Shi, from Smart Travel Asia. Sep 30, · There are some corporate social responsibility initiatives which the firm should take in order to get socially responsible.
There are five main corporate social responsibility initiatives: Philanthropy, Work/Life programs, Community redevelopment, Acceptance of whistle blowers and Environmental protection.
Corporate Social Responsibility Hashim Rizwan MOS Bill Iwrin Corporate social responsibility can simply be identified as a duty, which is not a legal obligation lately, under very much consideration by every multinationals, as well as the growing firm.
SAMPLE EXAM QUESTIONS. SAMPLE FINANCE EXAM 1 1. What effect do some environmental laws have on businesses? A.
corporate stock, certificates of deposit C. grain, gold B. government bonds, corporate stock D. gold, government bonds A primary responsibility of financial-information management is to A.
report financial transactions. Essay Corporate Social Responsibility 2 Words | 11 Pages. Corporate Social Responsibility Hashim Rizwan MOS Bill Iwrin Corporate social responsibility can simply be identified as a duty, which is not a legal obligation lately, under very much consideration by every multinationals, as well as the growing firm.