should accounting information provide presentation and disclosure and what are the reasons?

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Accounting information is a data about a business entity’s transactions. Once identified, the information is then classified and recorded, and it eventually finds its way into various reports of financial statements like balance sheet, the statement of cash flows, the income statement, and the statement of stockholders’ equity Such reports from accounting information shall provide presentation and disclosure.

Since Presentation and Disclosures are requirement from IFRSs, to maintain the transparency and standardised reporting format which can easily be compared to the similar companies in same industry, and give the reader enhanced understanding of company's financial position and financial performance.

The reports generated from accounting information also discloses the financial strategies that are being used by the company and reveals things like costs and profits for a certain accounting period. Financial Statement generated from accounting information also inform both current and potential investors of the accounting strategies and methods used.

ekkarill92 answered 1 year ago

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