Financial Statement Free Essay, Term Paper and Book Report
Financial Reporting
There are three main objectives of financial reporting which focus on enlightening investors and creditors with the necessary information about the firmÂ’s financial situtation, making investors and creditors analyze their future cash flows in terms of the amount, timing and uncertainity and informing investors about the dependebility of their resources and claims related with the investment. Financial reporting is essential for the continuity of the investments and credits because it is an evidence of the perceived reliability and stability of the company to external parties. Since reliability is based on what have happened in the past these financial accounting reports constitute the most significant and comprehensive source of information. Absence, mishandling and misrepresentation of such financial data in those reports can result in drastic repercussions both for the individual investors and countriesÂ’ economies as can be seen in the Enron case. McNamee suggests that the more detailed these reports are, the more widened the prospects of investors get; and......
Word Count: 321
Page Count: 1.2 (250 words a page / double spaced)
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