Revolution in International Financial Reporting

Now, many the companies often do their business in foreign country than in their selves country. Because of the enterprise must provide financial reporting that  can be understood by the universal, so companies require one set of financial reporting standard. This age, we know a single set of rules, called International Financail Reporting Standards (IFRS). The world estimates that by 2013 about the 310 largest global companies will be using IFRS.

Financial statements are the means a enterprise to communicate financial information to those outside company. The financial statements most frequently provided are the statement of financial position; the income statement or statement of comprehensive income; the statement of cash flows; the statement of changes entity.

Each of the objective of financial reporting are general-purpose financial statements to variety of users; capital providers as investors who need the information to know net cash inflows and to assess management’abillity; entity perspective to separate and distinct the enterprise from their owner; decision-usefulness. This objective is to provide financial information that is useful to present equity in making decision.

International Standard-Setting Structure

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: