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Outline one way a financial reporting systems can be used to evaluate organisational performance against agreed...

Outline one way a financial reporting systems can be used to evaluate organisational performance against agreed performance indicators.

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Financial reporting system give overall performance of the organisation to the management and users of financial statement .

Because of financial reporting , management identify profit and non profit areas of organisation and take appropriate decisions by management according to financial reporting system to improve non profit areas of organisation .

Performance indicators are used to internal development of organisation and motivate employees to give their effective and efficient performance to achieve set goals .

Performance indicators give result of only specific part of organisation only not give over all performance of the organisation like financial reporting .

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