Essay About Reliability Of Current Financial Statements And Figures Support Decision Maker

Organization Accounting and StewardshipOrganization Accounting and StewardshipABSTRACTIn this paper, I discuss the relevancy and reliability of current financial Statements prepared under the historic cost convention and following the accruals concept, investigating the Strengths and weakness of the financial statements in providing “useful” information to the users (Board OF Directors and Management of the Firm ,Shareholders, Employees , Lenders ,Suppliers , Customers , Government’s , The public ) With theoretical discussions and detailed analysis to the elements of the basic (3) Statements, Balance Sheet , Profit and Loss , Cash flow , in terms of relevancy and to whom is it relevant , how far can the figures support decision maker, also how far can these information represent reality and if they can be manipulated to give different results which reflects total different picture then reality presenting how reliable it is , also i will discuss the relation between these statements if there is still a need for the current articulation specially between Balance Sheet and P&L statements, I will support my discussion with references and researches and articles from the internet also a real life cases to support my argue .

Introduction .Board OF Directors and Management of the Firm ,Shareholders ,Employees , Lenders ,Suppliers , Customers are what a firm deals with in the day to day activates , it is a business fact , when we say dealing , in my opinion , this means “Requesting or Demanding “ , “Review Request and Approve”, “Action”, “Feedback on Action” , for example if the management of the firms decided to penetrate the market with new product that needs new expansion that needs new investment a ‘request’ will be forwarded to the Owners of the Firm to ‘decide ‘ to increase the investment , so a ‘review’ will be held and finally ‘approval’ , now for the action , if the owners will decide to finance the new expansion through a bank loan then a ‘request ‘ will be sent to the bank , the bank will ‘review ‘ and ‘decide’ to ‘approve’ the loan , the bank will feedback the firm board and management with approval and terms and conditions for the loan .

In closing, the Firm as a whole and to a lesser extent the entire management group in itself is composed of individuals who are directly involved in a business as well as their personal relationships for the benefit of themselves.

A Firm with a General Purpose Financial Management Group

The Firm aims to make sure that the Firm as a whole will be able to provide the best financial services and services to its shareholders without requiring them to take a specific position or be completely objective at the same time and without a centralized structure to manage the transactions of the Firm .

Accordingly, from a Firm’s perspective the Firm has a large and broad broad vision which reflects the whole community’s needs . This vision is what makes it so successful in achieving its objectives.

It is interesting to note that when a Firm is making a decision to undertake a financial expansion, it is also a decision to give consideration to the potential impacts of the expansion and the other major projects that it will undertake including, but not limited to, the strengthening of a specific community. For example, if it is to be able to continue and expand its operations into certain areas of the economy and to promote opportunities for growth, the new initiatives will be given the same priority and due consideration should be given to the future growth trajectory as well as its potential impact on the broader market for investment. Even if the initial financial resources are short term, a growing population or a new kind of local sector is also a key factor in the Firm decision being made; furthermore, while a long-term investment in a new medium such as manufacturing that is to be established in a specific part of the country will have its own set of requirements and requirements that apply to it , new mediums and new industries are going to have certain characteristics that are similar to the ones that currently exist in Europe or in some other countries.

As a consequence of this reality the Firm has to be careful with its capital allocation towards projects and the need to allocate capital that is needed and that might be needed before the project. If the financial objectives of the Firm is so important that they were not pursued to its satisfaction, then this capital allocation could increase drastically to more than just the investment level.

In short, it is the responsibility of the Firm to decide what the Financial Action will be, what it can and can’t do on its own and how it will perform in those contexts.

When an entity is making an investment in a new medium, the Firm must ensure that the initial interest paid will be used only on the projects the entity is pursuing as long as the financing is in place. At the same time, the Firm should ensure that investors from the existing companies would have no access to any new ventures for their services which would not be profitable. It must also ensure that investments in new projects such as healthcare, automotive and energy sectors would not be available to the same percentage as those in new ones; additionally, in addition to setting up the financing of its various projects for the purpose of offering new products and services, the Firm must also ensure that certain projects would take into account the financial situation and its investment objectives (as it is possible for firms to grow rapidly ), particularly in light of the financial resources and needs of the future.

A Firm with Financial Agencies and Business Partnerships

A Firm with one or more financial departments or corporate partners, particularly for private parties using its facilities to transact for the benefit of the Firm , is a strong asset or

Based on the previous business Demanding to Action cycles a set of financial reports that present useful information to all the expected users when it comes to making a business decision or a business review in this business cycles is very important, that is why Financial Accounting Standard Board (FASB), agreed about standardizing a generic purpose set of Financing reports that is useful to present and potential investors and creditors and other users in Determining and predicting the balances and availability of short-term financial resources, including cash, also Determining and predicting the cost of Operation , Ability of the Firm or Business entity to generate Cash to meet it’s Obligations (Current and Future ) , and may other measurement figures provided by these Financial Statements.

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In the case of Capital Gains, we consider the ratio of Revenue to Gross Income. We also consider a number of possible payment factors. For example, if we assume the $500,000 or more in gross revenue that we pay a business entity each month to manage that business activity to the current levels, we would expect to get $500,000 in revenue each quarter. However, we are not required to pay any cash from the business entity as required, nor would we expect to require any cash return from the business entity or any payment to either the business entity or any of the business entity’s shareholders or shareholders’ officers for our business reporting activities to be subject to payment of certain capital gains tax treatment.

We are interested in making our reporting in this business cycle, at the discretion of our Financial Accounting Standards Board, a non-confidential information to our creditors to provide information and/or to provide non-confidential assistance, including the creation of a plan by our CFO to report our reporting to our creditors, to the Commission on May 13, 2017. However, we can make reasonable arrangements to disclose certain information or to make a substantial portion of our business data subject to disclosure under applicable business reporting rules.

Financial Statements are reported using an internal accounting system called a GAAP. GAAP’s are used to determine the accounting value, and they also are used to calculate the ratio of cash to income in our business cycles because they are used interchangeably within the same business cycle. The relationship was formed following the adoption of the Dividend Plan, which is a transaction-based financial reporting system, and as we continue to innovate in our accounting processes.

Risk Factors for Dividends and Payables

The following risk factors are expected for our business cycle, if at all, as of December 31, 2017 and 2016:

Annual Cash Expected Earnings to be in the Fiscal Year ending May 31, 2017 Cash Expected Earnings to be in the Fiscal Next Year Ending June 1, 2018 Cash Expected Earnings to be in the Fiscal Year Ending December 31, 2021 Cash Expected Earnings to be in the Fiscal Year Ending November 25, 2018 Cash Expected Earnings to be in the Fiscal Year Ending May 31, 2018 Cash Expected Earnings to be in the Fiscal Year Ending June 1, 2018 Cash Expected Earnings to be in the Fiscal Year Ending December 31, 2021 Cash Expected Earnings to be in the Fiscal Year Ending January 15, 2019 Cash Expected Earnings to be in the Fiscal Year Ending June 1, 2018 Cash Expected Earnings to be in the Fiscal Year Ending December 31, 2021 Cash Expected Earnings to be in the Fiscal Year Ending December 31, 2021 Cash Expected Earnings to be in the Fiscal Year Ending December 31, 2021 Cash Expected Earnings to be in the Fiscal Year Ending January 15, 2019 Cash Expected Earnings to be in the Fiscal Year Ending June 1, 2018 Cash Expected Earnings to be in the Fiscal Year Ending June 1, 2018 Cash Expected Earnings to be in the Fiscal Year Ending December 31—January 15, 2020 Cash Expected Earnings to be

Statement of Financial Accounting main objective is to provide useful decision-making information for investors, creditors, and other users. These “Decision Usefulness” criteria should be based on (2) main facts , which are Relevance and Reliability. The FASB defines relevance of information as “ the information capability of making a difference in decisions to predict, confirms or correct prior expectations”. Reliability is defined as “ the ability to be reasonably free of error and bias and to be represented faithfully ”,As Stated in Leicester Manual

“Relevance The information provided should satisfy the needs of the information users. In the case of company accounts, clearly a wide range of information will be needed to satisfy a wide range of users. What is relevant to one user for one purpose will be less relevant to other users.”

Leicester,2.23“Reliability Information will be more reliable if it is independently verified. The law requires that the accounts published by limited companies should be verified by auditors, who must be independent of the company and must hold an approved qualification.”

Leicester,2.24GAAP financial reporting requirements tend to assure reliability over relevance. The focusing on reliability resulted in ignorance of market value in financial reporting and neglect to current economic reality of a firm. It is this relative emphasis that has caused so much of the attention , which is the aim of this paper to investigate , as I will go through the elements of the basic financial statements (Balance sheet , Profit and loss, Cash flow ) , Showing how relevant and how reliable is it with respect to the users who may need to take a business decision (like a bank that will decide to lend the