meaning objective of Corporate reporting,purpose,benefits of Corporate reporting

1. Corporate reporting
By
GRORGE CYRIAC

2. Meaning
• It may be defined as communication of
published financial statements and related
information from a business enterprise to thrid
parties (external users) including shareholder,
creditors, customers, governmental authorities
and the public.

3. Objectives of Financial Reporting
• Investment decision-making
• Management accountability

4. General purpose financial reporting
• It aims to satisfy the information needs of all
potential users. It satisfy information needs for
external users.

5. Specific purpose financial reporting
• It aims to serve needs of specific users to help
them in their separately identifiable decision
function.
• Ex: financial reports submitted to obtain credit
or loan

6. Qualitative characteristics of
financial reporting information
• Understandability
• Relevance ( predictive, feedback value,
timeliness)
• Reliability (verifiability, neutrality, faithfulness)
• Comparability (including consistency)

7. Benefits of financial reporting
• Economic decisions making
• Cost of capital
• Equilibrium in share prices
• Employee decisions
• Customer decisions
• Manager’s decisions