Deficit and Financial reporting: Difference between pages

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1. ''Pensions - defined benefit schemes.''
1. ''External.''


The excess of liabilities over assets in a funded Defined benefit pension scheme; also known as under-funding.
Financial reporting is traditionally external.


It is concerned with collating and providing information to external stakeholders, the financial markets and the public.


'''Example'''
Contrasted with management accounting, which provides information for internal stakeholders.


Pension liabilities = 100.


Pension assets = 90.


The deficit would be:
:<span style="color:#4B0082">'''''The objective of financial reporting - International Financial Reporting Standards overview'''''</span>


100 - 90
:The users of financial information need to assess:


= 10.
:*Prospects for future net cash inflows to the reporting entity; and
:*Management's stewardship of the entity's economic resources.


(Not to be confused with the percentage ''funding level'' which in this example would be 90 / 100 = 90%.)


:Accordingly, financial reporting seeks to provide information about:


Relevant accounting standards include Section 28 of FRS 102.
:*The entity's economic resources (assets), claims against the entity (liabilities) and changes in those resources and claims; and
:*How efficiently and effectively management has discharged its responsibilities to use the entity's economic resources.




2. ''Public finances.''
External reporting is mandatory for all limited liability companies, regardless of who owns them.


A government fiscal deficit, usually for a particular period, most often a year.
However, smaller and privately owned companies do have relatively lighter (mandatory) reporting requirements.


All companies may choose to publish more than the minimum mandatory information.


3.


Any financial shortfall, whether cumulative or for a single period.
Financial reporting is also known as ''financial accounting''.
 
 
2. ''Internal.''
 
The term 'financial reporting' is also used by some organisations in a broader sense, to include internal reporting (as well as external).
 




== See also ==
== See also ==
* [[Amortisation]]
* [[Accounts]]
* [[Debt]]
* [[Annual report]]
* [[Fiscal deficit]]
* [[Assets]]
* [[FRS 102]]
* [[Audit]]
* [[Funding level]]
* [[Audit, Reporting and Governance Authority]]
* [[Multicurrency cross-border pooling]]
* [[Balance sheet]]
* [[Multicurrency one-country pooling]]
* [[Boilerplate]]
* [[Surplus]]
* [[Cash flow statement]]
* [[Closing exchange rate]]
* [[Company]]
* [[Conceptual framework]]
* [[Credit]]
* [[Entity]]
* [[Environmental profit and loss]]
* [[Equity]]
*[[False accounting]]
* [[Finance]]
* [[Financial accounting]]
* [[Financial planning and analysis]]
* [[Financial Reporting Council]]
* [[Fiscal]]
* [[Income statement]]
* [[Incremental]]
* [[International Financial Reporting Standards]] (IFRS)
* [[Liabilities]]
* [[Limited liability company]]
* [[Management accounting]]
* [[Management efficiency ratio]]
* [[Performance]]
* [[Position]]
* [[Primary statements]]
* [[Private company]]
* [[Shareholder]]
* [[Small and Medium-sized Enterprises]]
* [[Stakeholder]]
* [[Statement of changes in equity]]
* [[Statement of comprehensive income]]
* [[Stewardship]]
* [[Sustainability Accounting Standards Board]] (SASB)
* [[Sustainability reporting]]
* [[Sustainable Finance Disclosure Regulation]] (SFDR)
* [[Useful financial information]]
* [[Value Reporting Foundation]] (VRF)


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Identify_and_assess_risks]]

Revision as of 13:15, 3 March 2022

1. External.

Financial reporting is traditionally external.

It is concerned with collating and providing information to external stakeholders, the financial markets and the public.

Contrasted with management accounting, which provides information for internal stakeholders.


The objective of financial reporting - International Financial Reporting Standards overview
The users of financial information need to assess:
  • Prospects for future net cash inflows to the reporting entity; and
  • Management's stewardship of the entity's economic resources.


Accordingly, financial reporting seeks to provide information about:
  • The entity's economic resources (assets), claims against the entity (liabilities) and changes in those resources and claims; and
  • How efficiently and effectively management has discharged its responsibilities to use the entity's economic resources.


External reporting is mandatory for all limited liability companies, regardless of who owns them.

However, smaller and privately owned companies do have relatively lighter (mandatory) reporting requirements.

All companies may choose to publish more than the minimum mandatory information.


Financial reporting is also known as financial accounting.


2. Internal.

The term 'financial reporting' is also used by some organisations in a broader sense, to include internal reporting (as well as external).


See also

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