Question

Discuss techniques and methods of presenting financial data for non-reporting entities. (Please type up your answer and also need a good paragraph of explanation not just bullet points)

Answer 1

The non-reporting entities while presenting their financial date has to follow the accounting standards to provide a framework of the report, so the outside agency would able to understand and compare the same with the related entities to show their interest either investing or buying the products or services.

The techniques and methods of presenting the financial data by the Non-reporting entities are:

1. Trendy reporting : The non-reporting entities can carry the trend of the past performance to present and estimate the present or the future results. Same trend of the sales growth can be carried forward to come up with present result position.
2. Equity Accounting : The non-reporting entities can use the return on the investment to estimate the financial results of the entity alongwith the desired changes in the share equity investment of the owner.
3. True and Fair view: For non-reporting entities, it is appropriate to present the true and fair view of their financial results without going to extract the actual figures.
4. Cash Flow Statement : The non-reporting entities can present their results through the Cash flow statement and showing the non-cash transactions and unused loan facilities which does not come under the Cash flow statement.

Through the use of above techniques and methods of presentation of results, the non-reporting entities can comply with the data presentation rules.

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