Question

List and describe (50 to 80 words each) the benefits and application of the methods for presenting and formatting financial data

Answer 1

Answer:

Benefits and Applications of Financial ststements are

Benefits:

Money related explanations, which are bookkeeping reports, fill in as the main strategy for conveying monetary data about a business element or a person to outside gatherings, for example, banks and financial specialists. In a specialized sense, budgetary explanations abridge the bookkeeping procedure and give an arrangement of record titles and measures of cash. Moreover, monetary proclamations report the budgetary position or money related status of a business or a person and also budgetary changes at a specific time or amid a timeframe. The fundamental motivation behind money related articulations is to convey to outside and inner gatherings data about monetary choices that have been made.

The Financial Accounting Standards Board, in its Statements of Financial Accounting Concepts, declared that budgetary detailing incorporates money related explanations as well as different methods for conveying data that relates, straightforwardly or in a roundabout way, to the data given by the bookkeeping framework.

MAJOR FINANCIAL STATEMENTS:

The essential monetary proclamations of organizations incorporate the ,

1) Balance Sheet,

2)income statement,

3) Cash flow statement,

4)The retained earnings statement, and
5)Statement of changes in owner's equity

Components OF FINANCIAL STATEMENTS:

The Financial Accounting Standards Board (FASB) has characterized the accompanying components of monetary proclamations of business endeavors:

• Assests,
• Liabilities,
• Equity,
• Revenues,
• Expenses,
• Gains,
• Losses,
• Investment by owners,
• Distribution to owners, and
• Comprehensive income.

Application:

This Standard applies to:

(a) every element that is required to get ready budgetary reports

as per that of the Corporations Act;

(b) broadly useful budgetary reports of each detailing

substance; and

(c) budgetary reports that are, or are held out to be, general

reason budgetary reports.

This Standard applies to yearly revealing periods starting

on or after 1 January 2005.

[Note: For application dates of sections changed or included by a revising

Standard, see Compilation Details.]

This Standard will not be connected to yearly revealing

periods starting before 1 January 2005.

The necessities indicated in this Standard apply to the

monetary report where data coming about because of their

application is material as per AASB 1031

Materiality.