Financial Accounting and Reporting Assignment Example | Topics and Well Written Essays - 3750 words

Financial Accounting and Reporting - Assignment Example 4). iii. They need the information about the resources of the organization not only to assess the prospects for future organization’s net cash inflows but also to identify how efficiently and effectively the organizations management has discharged or performed their duties and responsibilities in using the existing resources of the organization. For instance, it helps them to portray the results of the stewardship management hence being able to assess the management’s accountability so that their decision making process is influenced for their betterment (Weygandt et al 2010, pg. 4). Q1.2. Regulatory agencies and bodies are basically formed to address the needs of various user groups of financial statements. They usually address these needs by specifying procedures and requirements that should be followed in preparing and presenting financial statements. The different aspects used in addressing these needs include This Framework states the basic concepts that should be followed in preparing and presenting the financial statements particularly for the external users. It addresses the needs of different user because by addressing the reporting of the financial reporting, qualitative characteristics of the useful financial information, and by stating the definition, measurement and recognition of different elements of the financial statements (Alexander & Archer, 2008, pg. 2.20). IAS on the other hand, addresses the needs of the users by detailing the preparation of financial statements and by explaining the accounting treatment of various items in the financial statements, for instance inventories, leases, intangible assets to mention but a few. IFRS on the other hand, are designed in order to make company accounts comparable and understandable across international boundaries because it acts as a common global language particularly for multinational corporations. They specify accounting rules to be followed by accountants in