You work for ABC financial management. What are the consequences for clients of not meeting reporting...

You work for ABC financial management. What are the consequences for clients of not meeting reporting deadlines?

Solutions

Expert Solution

Deadlines for completing accounts and tax returns for example are set by the government - failing to meet these will have you in breach of the law and can result in financial penalties.

Submitting information on a timely basis is also important as accountants have several stakeholders (e.g. shareholders, employees, government, suppliers, customers, investors, banks, and loan providers) who need up-to-date information to be able to make informed decisions. For example, banks will use a business’ latest accounts to determine whether to approve a loan, whilst suppliers may want to see this information before agreeing on credit terms.

Businesses may likewise have contractual obligations which require deadlines to be met, such as for banking and landlord reporting. Failing to do this would be a breach of contract, and in extreme cases can result in the bank recalling their loan or a landlord ending its lease.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

You work for ABC financial management. Your client is XYZ company. The CEO contacts you directly...

You work for ABC financial management. Your client is XYZ company. The CEO contacts you directly on the 1st July, thanking you for the satisfaction of current objectives in line with the financial plan. Current objectives are reporting annual financial reports including preparing the BAS. The client asks that this now ceases as the finance officer will take over the duties. The client asks that you prepare a manual to assist the finance officer in their new duties. The client...

Why is GAAP so important for external financial reporting but not for internal management reporting?

Recently met with your clients, Mr. and Mrs. Smith. During that meeting they gave you a...

Recently met with your clients, Mr. and Mrs. Smith. During that meeting they gave you a lot of information about themselves and their family. They would like your help with financial planning, although they don't really know what specifically they need help with or how you can help them. You are now preparing for another meeting with them. Explain EACH of these topics in enough detail for them to get an overview and an understanding of some of the key...

1. What is the difference between “Earnings Management” and “Financial Reporting Fraud”? Discuss the difference based...

1. What is the difference between “Earnings Management” and “Financial Reporting Fraud”? Discuss the difference based on the definition of Earnings Management by Healy and Wahlen (1999) 2. What is a “big bath” in accounting? Why CEO is inclined to create a big bath?

In financial accounting and rules of financial reporting 1. What are leases? 2. Why is reporting...

In financial accounting and rules of financial reporting 1. What are leases? 2. Why is reporting of them required? 3. What information is disclosed? 4. What does this information tell you about a company?

What are the effects and consequences of inaccurate estimates for project management?

What do you feel is the difference between financial reporting and financial statements? What ratios might...

What do you feel is the difference between financial reporting and financial statements? What ratios might you use to evaluate managements performance, and why is this important?

Management is responsible for devising, executing, monitoring, and reporting on a complete financial plan for a...

Management is responsible for devising, executing, monitoring, and reporting on a complete financial plan for a business that focuses on the following: Profitability—ability to earn a satisfactory net income. Total Asset Management— use assets to maximize revenue. Liquidity—ability to pay bills when due and to meet unexpected needs for cash. Financial Risk – the risk involved in making a loan or investment. Operating Asset Management – using current assets and current liabilities in a way that supports revenue growth and...

The principal goal of financial reporting is... A Providing management with the information necessary to run...

The principal goal of financial reporting is... A Providing management with the information necessary to run their business B Providing investors with sufficient information to allow them to make capital allocation decissions C Providing the SEC with adequate information to perform oversight of company accounting

Accounting 2 - Financial Accounting, Ch. 10: Reporting and Analyzing Liabilities : What factors should management...

Accounting 2 - Financial Accounting, Ch. 10: Reporting and Analyzing Liabilities : What factors should management consider in determining if borrowing funds is a viable solution? In acquiring funds to finance major projects, how should management choose from among the alternatives?

Subjects