Corporate Reporting in India

Topics: Balance sheet, Financial statements, Annual report Pages: 31 (9437 words) Published: January 15, 2011
REPORTING PRACTICE OF THE CORPORATE SECTOR IN INDIA

Sham Lal & Sonia
Lecturer in Commerce, Guest Faculty, Govt. Bikram College of Commerce, Patiala . Research Scholar, Dravidian University, Kuppum, AP. MA Economics Part II, Punjabi University, Patiala

Abstract
Disclosure is the communication of various details regarding the activities of the business which are to be disclosed either statutorily or otherwise, and it is to convey a true and fair view of the operating results and financial position to the users of financial reports. The study points out that the effective corporate reporting can only be achieved by a voluntary change in the corporate reporting philosophy. In order to achieve high standards of corporate reporting practices, internal pressures such as peers and market competition should be more effective than enforcement by regulating agencies. It is also imperative that the regulators should expand their role and take effective measures to propagate the concepts of best practices in ushering an era of good corporate reporting. In this study an attempt has been made to analyze corporate reporting practices of Indian companies. The study indicates that the disclosure in corporate reporting is the highest in the public sector followed by private sector.

INTRODUCTION
Accountancy is a social force, the primary function of which is to facilitate the administration of the economic activity of an enterprise. It has two fold phases: (i) Measuring and arraying the economic data.

(ii) Communicating the result of this process to the interested parties.
The second phase is performed by means of Finance report, portraying the financial aspects of the activities over a certain period of time. Such information may be statutory or non-statutory. Disclosure can be defined as a process through which a business enterprise communicates with the external parties.

According to the committee on accounting concepts and standards, American Accounting Association (AAA), the primary function of accounting is to accumulate and communicate information essential to an understanding of the activities of an enterprise, whether large or small, corporate or non-corporate, profit or non-profit, public or private. Similarly Welsch and Anthony states: “Accounting is an information system and financial statement constitutes an important communication media.”

CONCEPT
Disclosure is the communication of various details regarding the activities of the business which are to be disclosed either statutorily or otherwise, and it is to convey a true and fair view of the operating results and financial position to the users of financial reports. It is nothing but the communication of financial information of the activities of the undertaking to the interested parties for facilitating their economic decisions. It is the reporting of accounting information of an entity (individual, firm, company, government enterprise etc.) to a user or a group of users.

REVIEW OF LITRATURE
Many studies have been conducted in India and abroad about corporate disclosure practices prevalent indifferent countries by different researchers. Their findings have paved the way for further studies and research. A number of books, research papers, recommendations by various committees and legal journey of corporate disclosure have been studied and the same have been reviewed briefly in this chapter.

N. Dass Gupta (1977) in his published Ph.D. thesis entitled “Financial Reporting in India” has critically examined the financial reporting practices prevalent in India. In his study, he has suggested that the statements of highlights, summarized balance sheets and profit and loss accounts, narrating statements, statistical records, diagrams and charts should be included in the annual reports to make them more informative and to serve the increasing needs of their users. D.R. Singh & B. N. Gupta (1977) in their study “ Corporate...

Bibliography: Avadhani, V.A. | Investment and Securities Markets in India, Himalaya Publishing House, Bombay (1992). |
Bhalla,V.K. | Investment Management, S.Chand and Co., Delhi. |
Chander, Subhash | Human Resources Accounting: A Challenge to Accounting Profession, Udyog Prabandh, Jan. 1986 |
Chander, Subhash | Corporate Reporting Practices in Public and Private Sectors, Deep & Deep Publications, New Delhi, 1992. |
Das Gupta,N | Financial Reporting in India, Sultan Chand and Sons, New Delhi, 1977. |
Devarajan, R. | Corporate Financial Practices in India: Concepts and Current Issues, The Chartered Accountant, June 1991 |
Grandori, Anna | Corporte Governance and Firm Organization, Oxford University Press, 2004 |
Gupta, Kamal | Contemporary Auditing, New Delhi
Gupta, Santosh | Research Methodology and Statistical Techniques, Deep & Deep Publications, New Delhi, 1999. |
Khan,M.Y
Lal, Jawahar | Financial Reporting by Diversified Companies, Sterling, Delhi, 1985 |
Meena, D.D. | Corporate Reporting Practices in Public Enterprises, Ess Ess Publications, New Delhi
Pandey, I.M. | Management Accounting, Vikas Publishing House Pvt. Ltd., New Delhi, 1997. |
Porwal, L.S. | Accunting Theory- An Intrduction, Tata McGraw- Hill Publishing Company Ltd., New Delhi, 1999. |
Rao,C.R. | Balance Sheet-How True and Fair, Brahmi Publishers, Banglore, 1991. |
Rao, P.Mohan | Corporate Social Accounting and Reporting, Deep & Deep Publication Pvt.Ltd, New Delhi, 1999 |
Singh, Avtar | Company Law, Eastern Book Company, Lucknow, 1998. |
Sharma, R.C. | Financial Reporting in Public Enterprises, Tiwari Publications, New Delhi, 1991. |
Sugan C. Jain | New Trends in Corporate Reporting, RBSA Publishers, Jaipur, 2006 |
Singh, Preeti | Investmetn Management, Himalaya Publishing Horse, New Delhi. |
Saeed, M. | Corporate Financial Reporting, Anmol Publication, New Delhi (1990) |
WebSites |
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Corporate Reporting Essay
  • Corporate Financial Reporting System Of Essay
  • Corporate Financial Reporting Summary Essay
  • Essay about Corporate Reporting
  • corporate Essay
  • Advanced Corporate Reporting Essay
  • CORPORATE SOCIAL REPORTING PRACTICES IN INDIA: AN OVERVIEW Essay
  • The Regulation of Corporate Environmental Reporting Essay

Become a StudyMode Member

Sign Up - It's Free