ACC00145-Financial Reporting

According to Wahlen, Jones and Pagach (2012), the main purpose of financial reporting of an entity whether listed or not is to provide relevant financial information. The information provided must be relevant and true for the usefulness to potential investors, lenders, creditors, and other existing investors. Such parties rely on this information in decision making. The financial statements of an entity for a complete financial report must comprise the main four components that are balance sheet, income statements, statements of cash flows and statements of retained earnings to be deemed complete. Ideally, the information in a listed firm should meet the minimum aspects of the conceptual frameworks in full disclosure to the performance of such entity. The management stewardship of the entity’s resources is assessed by the standards of such information presented in the financial reports. The Australian accounting standards board (AASBs) further improves to a high level the measurements of uncertainty in the information provided by setting a common guidelines to be followed when preparing the financial reports. In line with the AASBs policy of incorporating the importance of prudence and recognition, the information provided should be incorporate decision making in financial position perspectives (Henderson ‘et al” 2015).

 

In our social accountability in the AASB conceptual framework, we are going to simply analyze Commonwealth Bank, a listed entity in the ASX and the top in the list of financial companies. Commonwealth bank is in the business of retail and institution banking in Australia has managed to be among the top twenty listed companies due to its excellent performance and financial reporting (Andreaus, Costa and Parker, 2014).

The IFRS recommends that any accounting board should embrace the use of the accounting stands in their daily reporting. The accounting practitioners that is the accountant are guided by the set standards set such bodies. Like any other accounting board, AASB is necessary and important to the regulation and management of the profession in entities for the entity to provide relevant and through information. Accounting standards help the entity to prepare financial statements that provide through the financial information in a manner that any stakeholder can understand clearly (Gruber S. 2014).

Commonwealth Customers Analysis.

Commonwealth Shareholding Analysis    

Commonwealth Dividends Analysis.

The bank financial performance.

Disclosure of information in annual reports.

Effects and impacts of disclosure in the market.

References