Financial reporting

 

In any industry, whether manufacturing or service, we have multiple departments, which function day in day out to achieve organizational goals.  Financial reporting The functioning of these departments may or may not be interdependent, but at the end of the day they are linked together by one common thread – Accounting & Finance department. The accounting & financial aspects of each and every department are recorded and are reported to various stakeholders. There are two different types of reporting – Financial reporting for various stakeholders & Management Reporting for internal Management of an organization. Both this reporting are important and are an integral part of Accounting & reporting system of an organization. Financial reporting involves the disclosure of financial information to management and the public (if the company is publicly traded) about how the company is performing over a specific period of time. Financial reports are usually issued on a quarterly and annual basis. This is different from management reporting, which is financial information that is disclosed to those inside the company to be used to make decisions within the company. Financial reports are included in a public company's annual report. Financial reporting is the financial results of an organization that are released its stakeholders and the public. This reporting is a key function of the controller, who may be assisted by the investor relations officer if an organization is publicly held. Financial reporting typically encompasses the following documents and postings. If a company’s stock happens to be publicly traded, the information can be widely circulated, ending up in the hands of customers, employees, competitors, and more.  the gap between accounting theory and practice, the Journal of Financial Reporting and Accounting addresses significant issues in this area and promote interdisciplinary and international understanding of factors affecting reporting and accounting.