Financial Reporting vs Corporate Reporting

Author Topic: Financial Reporting vs Corporate Reporting  (Read 779 times)

Offline Shekh Moniruzzaman

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Financial Reporting vs Corporate Reporting
« on: April 26, 2017, 12:09:54 PM »
Meaning of Financial Reporting:
Financial reporting includes not only financial statements but also other means of communicating information that relates, directly or indirectly, to the information provided by the accounting system-that is, information about the enterprises, obligations, earnings etc.

Meaning of Corporate Reporting:
Corporate reports aim to provide information about the resources and performance of the reporting entity to users of such reports.

It includes-
•   Historical financial information regarding their performance
•   Chairman’s reports on the performance and strategy of the company
•   Non-financial information (not mandatory in IFRS) such as environment, employees and society

Usefulness of Corporate Reporting:
•   To satisfy statutory requirements-taxing authority
•   To compare financial information from different entities
•   To be more transparent in their reporting-by providing disclosures in financial statements
•   To make commentary on the performance of the business-disclose the nature of the business as well as the objectives, strategies,
         results, prospects etc.
•   To give the accessibility of the company information to the users
•   To increased disclosure of non-financial information