Financial reporting and Jurisdiction: Difference between pages

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1. ''External.''
1.  


Financial reporting is traditionally external.
''Law''.


It is concerned with collating and providing information to external stakeholders, the financial markets and the public.
The legal authority of a court to try cases and rule on legal matters within a particular geographic area and/or over certain types of legal cases.


Contrasted with management accounting, which provides information for internal stakeholders.
Jurisdiction is very important for the practical enforceability of legal rights, for example contractual rights.






:<span style="color:#4B0082">'''''The objective of financial reporting (International Financial Reporting Standards overview)'''''</span>
2.


:The users of financial information need to assess:
Similar legitimate rights enjoyed by law enforcement agencies, for example the police of a particular state.


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


3.


:Accordingly, financial reporting seeks to provide information about:
The geographical or other area which is subject to a particular legal system or the authority of its law enforcement agencies, or more usually both.
 
:*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).


For example, a country.




== See also ==
== See also ==
* [[Accounts]]
* [[Capacity]]
* [[Annual report]]
* [[Court]]
* [[Assets]]
* [[Balance sheet]]
* [[Cashflow statement]]
* [[Closing exchange rate]]
* [[Company]]
* [[Conceptual framework]]
* [[Credit]]
* [[Entity]]
* [[Environmental profit and loss]]
* [[Equity]]
* [[Finance]]
* [[Financial accounting]]
* [[Financial planning and analysis]]
* [[Fiscal]]
* [[Income statement]]
* [[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:Compliance_and_audit]]

Revision as of 17:50, 13 March 2015

1.

Law.

The legal authority of a court to try cases and rule on legal matters within a particular geographic area and/or over certain types of legal cases.

Jurisdiction is very important for the practical enforceability of legal rights, for example contractual rights.


2.

Similar legitimate rights enjoyed by law enforcement agencies, for example the police of a particular state.


3.

The geographical or other area which is subject to a particular legal system or the authority of its law enforcement agencies, or more usually both.

For example, a country.


See also