imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''External.''
| | A forward contract is a binding agreement either to buy or to sell a certain amount of a foreign currency or another traded asset at a predetermined price at a specified time in the future. |
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| Financial reporting is traditionally external.
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| It is concerned with collating and providing information to external stakeholders, the financial markets and the public.
| | Forward contracts are bilateral agreements. |
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| Contrasted with management accounting, which provides information for internal stakeholders.
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| :<span style="color:#4B0082">'''''The objective of financial reporting (International Financial Reporting Standards overview)'''''</span>
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| :The users of financial information need to assess:
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| :*Prospects for future net cash inflows to the reporting entity; and
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| :*Management's stewardship of the entity's economic resources.
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| :Accordingly, financial reporting seeks to provide information about:
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| :*The entity's economic resources (assets), claims against the entity (liabilities) and changes in those resources and claims; and
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| :*How efficiently and effectively management has discharged its responsibilities to use the entity's economic resources.
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| External reporting is mandatory for all limited liability companies, regardless of who owns them.
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| However, smaller and privately owned companies do have relatively lighter (mandatory) reporting requirements.
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| All companies may choose to publish more than the minimum mandatory information.
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| Financial reporting is also known as ''financial accounting''.
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| 2. ''Internal.''
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| The term 'financial reporting' is also used by some organisations in a broader sense, to include internal reporting (as well as external).
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| | One of the parties is contractually obliged to buy the asset, and the other party is similarly obliged to sell the asset. |
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| == See also == | | == See also == |
| * [[Accounts]] | | * [[Bilateral]] |
| * [[Annual report]] | | *[[Contract]] |
| * [[Assets]] | | * [[Deal contingent forward]] |
| * [[Closing exchange rate]] | | * [[Derivative instrument]] |
| * [[Company]] | | * [[Fixing instrument]] |
| * [[Conceptual framework]] | | * [[Foreign exchange risk]] |
| * [[Credit]]
| | * [[Forward market]] |
| * [[Entity]]
| | * [[Forward points]] |
| * [[Environmental profit and loss]]
| | * [[Futures contract]] |
| * [[Equity]]
| | * [[Hedging]] |
| * [[Finance]]
| | * [[Risk management]] |
| * [[Financial accounting]]
| | * [[Risk response]] |
| * [[Financial planning and analysis]]
| | * [[Transfer]] |
| * [[Fiscal]]
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| * [[Incremental]]
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| * [[International Financial Reporting Standards]] (IFRS)
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| * [[International Integrated Reporting Council]] (IIRC)
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| * [[Liabilities]]
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| * [[Limited liability company]]
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| * [[Management accounting]]
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| * [[Management efficiency ratio]]
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| * [[Performance]]
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| * [[Position]]
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| * [[Primary statements]]
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| * [[Private company]]
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| * [[Shareholder]]
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| * [[Small and Medium-sized Enterprises]] | |
| * [[Stakeholder]] | |
| * [[Stewardship]] | |
| * [[Sustainability Accounting Standards Board]] (SASB) | |
| * [[Sustainable Finance Disclosure Regulation]] (SFDR) | |
| * [[Useful financial information]] | |
| * [[Value Reporting Foundation]] (VRF) | |
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| [[Category:Accounting,_tax_and_regulation]] | | [[Category:The_business_context]] |
| | [[Category:Manage_risks]] |
| | [[Category:Financial_products_and_markets]] |