Scribd
Upload
38 views4 pages

Tarunbhandari Bcom (Ii) e Ca

The document discusses various types of corporate reports including annual reports, financial statements, and reports on sustainability. It describes key parts of annual reports such as financial statements, messages from company leaders, and reports on social responsibility. The document also compares financial reports and financial statements, and outlines what should be included in board of directors reports and annual reports.

Uploaded by

Psyc Gaming
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
38 views4 pages

Tarunbhandari Bcom (Ii) e Ca

The document discusses various types of corporate reports including annual reports, financial statements, and reports on sustainability. It describes key parts of annual reports such as financial statements, messages from company leaders, and reports on social responsibility. The document also compares financial reports and financial statements, and outlines what should be included in board of directors reports and annual reports.

Uploaded by

Psyc Gaming
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

CORPORATE ACCOUNTING ASSIGNMENT

TARUN BHANDARI
BCOM HONS. II - E
10529888823

Corporate Accounting
20 March 2024

OVERVIEW
Explaining information about a company's finances and other important details to interested
parties is called corporate reporting. There are different types of corporate reports, like financial
reports, reports on how the company is managed, reports on responsibility, and others,
depending on what they are needed for. Annual reports give a big picture of the company,
including finances, employees, and more. But you can also focus on specific areas using reports
like financial statements or reports on sustainability.

None of these reports are better than the others; it's good to use different types. The main goal of
corporate reporting is to show the value a company brings. This includes how it affects people,
the environment, and society as a whole.

Importance
1. Giving information to investors: Accounting information helps analyze and support company
decisions. Financial statements make it easier to look at important money facts and be
responsible.

2. Keeping track of business money: Financial reporting shows everyone involved where money
is coming from and going to in a business.

3. Helping with making decisions: Accounting information is important for analyzing and
supporting decisions in a company. Financial statements provide important facts about money
matters, which help in making accountable decision making

Objectives
1. Giving information to investors: Accounting information helps analyze and support company
decisions. Financial statements make it easier to look at important money facts and be
responsible.

2. Keeping track of business money: Financial reporting shows everyone involved where money
is coming from and going to in a businesses.

Parts of the Annual Report


The annual report contains various sections like financial statements, a summary of the
company's past, why it exists, and its beliefs. It includes messages from the chairman and
managing director, details about the board of directors, the company's business model, a report
from the board, discussions by management, reports on social responsibility, business
responsibility, and corporate governance. It also includes a secretarial audit report, economic
value added details, and a summary of key financial points.

Financial Report vs Financial Statement : Key Differences


1. Purpose
○ Financial Statements: Papers that show how money is used, made, and saved,
made for people outside the company to see.
○ Financial Reports: Detailed papers with money statements, explanations, and
thoughts, used inside and outside the company.
2. Scope and Content
○ Financial Statements: Show money details like balances and incomes, following
accounting rules.
○ Financial Reports: Have money statements, explanations, extra details, and other
important non-money information for a better understanding
3. Audience :
○ Financial Statements: Made mainly for investors and regulators outside the
company.
○ Financial Reports: Used by people inside the company to make decisions and also
by investors, shareholders, and regulators outside.
4. Regulatory Requirements
○ Financial Statements: Mandated by accounting standards and regulations.
○ Financial Reports: Not always regulated; format and content vary based on
company needs.
Contents of Annual Report
1. Sales forecast: This shows where future sales might come from, looking at potential
customers and how likely they are to buy. It helps the business see where it can grow and
make more money.
2. Risk reporting: This tells the business about any possible financial problems that could
happen now or in the future. It helps the business prepare and avoid problems.
3. OKR (Objectives & Key Results) reporting: This talks about future goals and what needs to
happen to reach them. It helps the business stay focused and make plans for the future.
4. Cash Flow Forecast : Cash flow forecast predicts when and how much money will flow in
and out of a business over a specific period, helping plan for financial needs and manage
cash effectively.

Mandatory Disclosure Through Annual Report


1. Purpose: Gives important info about a company's money, how it runs, and how it's
managed.
2. Content: Includes money statements like balance sheet, income statement, and more,
plus explanations from management.
3. Regulatory Requirement: Needed by accounting rules like GAAP or IFRS to be clear and
honest.
4. Audience: Mainly for shareholders, investors, and regulators who want to know how the
company is doing financially.
5. Frequency: Made once a year, covering the company's money activities for that year.
6. Importance: Gives a big picture of how the company is doing financially, its risks, and what
might happen in the future, helping people make smart choices.

Content of the report of the Board of Directors


● Introduction and overview : Provides a brief introduction to the company , it's mission,
and the purpose of the report.
● Corporate Governance : Talks about how the company is managed, including who's on
the board and how they follow rules.
● Board Activities and Discussion : Summarizes what the board did during the time
covered by the report.
● Financial Performance and Strategy : Shows how well the company is doing financially
and what plans it has for the future.
● Risk management and compliance : Explains how the company deals with risks and
follows rules and laws.
● Stakeholder Engagement : Talks about how the company interacts with different people
like shareholders, employees, and customers.
● CSR and Sustainability : Describes what the company does to help the environment and
community.
● Outlook and Future plans : Gives an idea of what the company plans to do in the future.
● Acknowledgement and conclusions : Thanks everyone involved in making the report
and might include a final message from the board or CEO.

XBRL FILING
XBRL filing helps make sharing and understanding financial info easier by tagging data with
standard labels. This makes it simpler to search, analyze, and compare data between companies
and regulators. In short, XBRL filing makes it easier to send financial reports electronically in a
standard way, which helps with better data analysis and comparison, but it also comes with
challenges in how it's used and followed.

You might also like