Financial reporting and Forward contract: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
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.


Financial reporting is traditionally external.


It is concerned with collating and providing information to external stakeholders, the financial markets and the public.
Forward contracts are bilateral agreements.
 
Contrasted with management accounting, which provides information for internal stakeholders.
 
 
 
:<span style="color:#4B0082">'''''The objective of financial reporting (International Financial Reporting Standards overview)'''''</span>
 
: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).


One of the parties is contractually obliged to buy the asset, and the other party is similarly obliged to sell the asset.




== 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]]
* [[Incremental]]
* [[International Financial Reporting Standards]] (IFRS)
* [[International Integrated Reporting Council]] (IIRC)
* [[Liabilities]]
* [[Limited liability company]]
* [[Management accounting]]
* [[Management efficiency ratio]]
* [[Performance]]
* [[Position]]
* [[Primary statements]]
* [[Private company]]
* [[Shareholder]]
* [[Small and Medium-sized Enterprises]]
* [[Stakeholder]]
* [[Stewardship]]
* [[Sustainability Accounting Standards Board]] (SASB)
* [[Sustainable Finance Disclosure Regulation]] (SFDR)
* [[Useful financial information]]
* [[Value Reporting Foundation]] (VRF)


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]

Revision as of 22:13, 26 July 2022

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.


Forward contracts are bilateral agreements.

One of the parties is contractually obliged to buy the asset, and the other party is similarly obliged to sell the asset.


See also