Question

Briefly discuss the objectives of financial reporting and the characteristics that such information should possess.

Answer 1

Objective of The objective analyze and This helps about how Financial reporting : of financial reporting is to track, rebout your business income. you to make informed decisions to manage the business. financial Mebdenting involves the disclosure of financial information to the various stakeholders about the financial performance and financial position of the organisation over a specified preavied of time. Characteristics : j Relevance : Information should be reported that may aid the users in decision making. i Reliability : Reliability make information I useful tan decision making i) Understandability: The quality of information I that enables users to the - herceive its significance. iv) Comparability. The decision maker will make combanisions among alternativess which is facilitated by comparable information. v Neutrality : Neutrality means free from bras ar objectivity vis materiality : materiality concept implies that not - U all information need our should be communicated in rebarts, only. - material information should be ere basted