Question

1. Research on the Relevance to Financial Reporting.

2. Research on the inmportance of the principles of IFRS,FAS and IFAS for cash flow statements.

3.Research on the inmportance of the principles of IFRS,FAS and IFAS for Income statement.

4.Research on the inmportance of the principles of IFRS,FAS and IFAS for Balance sheet.

Provide references and post should be 2 pages long.

Answer 1

Financial reporting is the language that communicates information about the financial condition and operational results of a company (public or private), not-for-profit organization, or state or local government. Specifically, financial reporting includes the following information: Financial position (balance sheet, statement of net position) Results of operations (statement of revenues, expenses and changes in net position, statement of comprehensive income, etc.), and Disclosures The accounting standards developed and established by the Financial Accounting Foundation’s (FAF) standard-setting Boards—the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB)—determine how those financial statements are prepared. The standards are known collectively as Generally Accepted Accounting Principles—or GAAP. For all organizations, GAAP is based on established concepts, objectives, standards and conventions that have evolved over time to guide how financial statements are prepared and presented. For companies or not-for-profits, GAAP is set with the objective of providing information that is useful to investors, lenders, or others that provide or may potentially provide resources. An additional objective applies to financial reporting for state and local governments: to provide information that enables taxpayers and others who use governmental financial statements to hold governments accountable. GAAP includes principles on: Recognition—what items should be recognized in the financial statements (for example as assets, liabilities, revenues, and expenses) Measurement—what amounts should be reported for each of the elements included in financial statements, Presentation—what line items, subtotals and totals should be displayed in the financial statements and how might items be aggregated within the financial statements Disclosure—what specific information is most important to the users of the financial statements. Disclosures both supplement and explain amounts in the statements.