Financial Disclosures
Introduction
This research is aim at examining the importance of financial reporting disclosures; as an element of the International Financial Reporting Standards Reporting (IFRS) in small, medium and large companies but before this can be done it is important that some key issues be understood or made simpler from the above topic.
According to investopedia International Financial Reporting Standards (IFRS) it is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board.
It is believed that IFRS, when adopted worldwide, will benefit investors and other users of financial statements by reducing the cost of investments and increasing the quality of the information provided. Additionally, investors will be more willing to provide financing with greater transparency among different firms' financial statements. Furthermore, multinational corporations serve to benefit the most from only needing to report to a single standard and, hence, can save money
Financial reporting plays an essential role when thinking of investment either national or internationally, "financial reporting is a source of communicating economic messages on the results of business decisions and events, insofar as they can be expressed in terms of quantifiable financial data, in such a way as to achieve maximum understanding by the user and correspondence of the Messages with economic reality". Jordan (1970, p. 139) while Bahnson (2009) also expressed similar argument, stating that financial report provides vital information for creditors, investors as well as other key users in decision making.
Financial reporting has had to keep up with these changes, perhaps most significantly with more widespread use of fair value accounting, which often involves more complex and judgmental measurements. Financial reporting also aims to unwrap what
This research is aim at examining the importance of financial reporting disclosures; as an element of the International Financial Reporting Standards Reporting (IFRS) in small, medium and large companies but before this can be done it is important that some key issues be understood or made simpler from the above topic.
According to investopedia International Financial Reporting Standards (IFRS) it is a set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. IFRS are issued by the International Accounting Standards Board.
It is believed that IFRS, when adopted worldwide, will benefit investors and other users of financial statements by reducing the cost of investments and increasing the quality of the information provided. Additionally, investors will be more willing to provide financing with greater transparency among different firms' financial statements. Furthermore, multinational corporations serve to benefit the most from only needing to report to a single standard and, hence, can save money
Financial reporting plays an essential role when thinking of investment either national or internationally, "financial reporting is a source of communicating economic messages on the results of business decisions and events, insofar as they can be expressed in terms of quantifiable financial data, in such a way as to achieve maximum understanding by the user and correspondence of the Messages with economic reality". Jordan (1970, p. 139) while Bahnson (2009) also expressed similar argument, stating that financial report provides vital information for creditors, investors as well as other key users in decision making.
Financial reporting has had to keep up with these changes, perhaps most significantly with more widespread use of fair value accounting, which often involves more complex and judgmental measurements. Financial reporting also aims to unwrap what