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In the world of finance, financial reporting includes external finance statements like statements of stakeholder’s equity, income statements, along with the notes of statements. Financial reporting is a very vital part of corporate governance. Financial reporting case study assignment help service provide students more information about financial reporting, it explains that financial reporting involves the disclosure of financial and business information to management and finance department and make it public if the company is publicly traded. It informed about how the company is performing in a specific period of time.
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What is the Purpose of Financial reporting?
The main purpose of financial reporting has two main tasks. Firstly it helps to manage effective decision making concern’s of the company. It also helps to fulfill the company’s objectives and overall strategies. The financial data helps to manage the strengths and weakness of the company, along with this it also rates overall financial health. And secondly, financial reporting helps to analyze and provide vital information about the financial health and other activities of the company, to its stakeholders including its shareholders, consumers and government regulators. Financial reporting also ensures that the company is running appropriately. Managers use financial reports to make company’s business decisions. And a creditor uses financial reporting to evaluate or determine their risk in loaning money to a particular company.
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