Financial reporting is a systematic record of the financial activities and position of a business, person, or other entity. It entails the disclosure of financial details to the numerous stakeholders about the financial aspects of the business over a particular period of time. These stakeholders consist of creditors, investors, debt providers, public, governments & government agencies. For listed companies the occurrence of financial reporting is quarterly & annually.
Financial reporting intends to provide information to management of an organization which is utilized for the purpose of planning, analyzing, benchmarking and decision making. Then the information is conveyed to their numerous stakeholders which allows them to make rational and prudent decisions regarding investment, credit issuance etc.
The syllabus commences with the theoretical framework for financial reporting with regards to the characteristics of useful information and the fundamental bases of accounting introduced in the paper F3. It then shifts to a comprehensive examination of the regulatory framework of accounting and how this enlightens the standard setting process. The major areas of the syllabus cover up the reporting of financial information for companies with regards to Generally Accepted Accounting Principles (GAAP). In the end, the syllabus wraps up the analysis and interpretation of information from financial reports.
The financial reporting syllabus assumes understanding obtained in paper F3 Financial Accounting, and is applicable further in greater intensity. It can be recognized as the base paper that leads to papers including Audit and Assurance F8, Strategic Business Reporting SBR and Business Analysis P3.
Key Areas of the subject: Financial Reporting is usually considered as an end product of accounting. The components of financial reporting are as follows:
Discuss and apply a conceptual and regulatory framework for financial reporting
Account for transactions in accordance with International accounting standards
Analyze and interpret financial statements
Prepare and present Financial Statements for single entities and business combinations in accordance with International Accounting Standards
Self-study programs with chapter wise video lectures, study material and practice bank.
Live teaching sessions with recorded facility
Easy access to e-study material including comprehensive study notes, revision notes, summary notes.
Extensive practice bank based on real exam environment
Mock test with marking and review facility from subjects experts
24/7 tutor support
Upon completion of this course student will be able to:
Prepare an entity’s financial statements in accordance with approved structure and content
Prepare and enlighten the contents and purpose of the statement of changes in equity
Discriminate between the primary aims of non-profit, public sector entities and those of profit orientated entities.
Enhance knowledge and skills in understanding and interpreting accounting standards, and the theoretical framework in the making of financial statements of businesses, which includes groups and how to explore and infer those financial statements.