The Importance and the Objectives of Corporate Reporting: Financial Reporting
In every industry, there are a number of departments available which include the service and the manufacturing industry, and all these departments work towards achieving organizational goals of the company. These different departments may or may not have interdependence, but they are all linked together through one common thread that is the Accounting and Finance department. The financial, as well as accounting statements,are stated to the stakeholders.
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Types of financial reporting
Both these types of financial reporting are very important and are considered to be very important for reporting as well as maintenance of accounting system of an organization. There are a number of regulatory and statutory requirements of an organization and also a number of stakeholders present for whom these financial reports are of immense importance.Financial reporting is actually a very important aspect of corporate governance.
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Components of financial reporting
Company’s financial statements which include profit and loss account, cash flow statement, and balance sheet and also statement of changes present in the equity of the stockholder.
Objectives of financial reporting
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