Question

Write a ‘Term Paper’ within the broad framework of Financial Reporting
The paper:-
(i) should analyze any accounting issue/topic of your choice
(ii) the issue/topic can be empirical or theoretical, related to general purpose financial reporting
(iii) should be in not more than four (4) type written pages; 12-Times new roman font size
You may wish to organize the paper in the following order:-
Introduction 30%
Theory and Practice (Discussions) 50%
Conclusion or Recommendations 20%

Answer 1

Financial reporting refers to standard practices to give stakeholders an accurate depiction of a company’s finances, including their revenues, expenses, profits, capital, and cash flow, as formal records that provide in-depth insights into financial information.Each of these financial KPIs is incredibly important because they demonstrate the overall ‘health’ of a company – at least when it comes to the small matter of money. These types of KPI reports don’t offer much insight in the way a company’s culture or management structure, but they are vital to success, nonetheless.It’s crucial that financial reports are as accurate as possible – otherwise, any management reports (and ensuing decisions) based on them will be sitting on a shaky foundation. This is where companies can run into trouble, using legacy methods (such as one massive spreadsheet that multiple users have access to) rather than reaping the benefits of financial reporting by utilizing financial dashboards instead.

The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization. This information is used by the readers of financial statements to make decisions regarding the allocation of resources

A main case is of breach of confidentiality:

Suppose a person in an Organisation has full access regarding the working of enterprise and he tries to share such information about the Company to any third party, then is a risk of confidentiality. It will have a huge impact on the financial position, as crucial information has been shared. Hence this will have an impact on the Financial reporting.