Financial reporting refers to the examination of financial results and information related to management and external stakeholders. This involves significant investors, customers and regulators who are directly linked to the performance of a company over a specific period of time. Read on to learn more about this unique business topic and its overall significance in your professional success.
The different elements of financial reporting
The issuing of financial reports is made on a quarterly and annual basis and are divided into the following divisions:
Balance Sheet – Also known as Statement of Financial Position this is dedicated to reporting on an organisation’s assets, liabilities, and shareholders equity at a given point in time. This sector is typically focused on usually at the end of a year (or fiscal quarter).
Income Statement – Also known as Profit and Loss Report these are used to draft reports on a company’s expenses, income, and profits during a certain period of time, such as a year (or fiscal quarter). This includes the various expenses and sales incurred during the specific period.
Statement of Retained Earnings – Also known as Statement of Changes in Equity this reporting relies on the fluctuations in the equity of the company during a specifies time period, more specifically a year (or fiscal quarter).
Cash Flow Statement – These reports are typically referred to as sources and applications of cash that includes a company’s cash flow operations. Primarily it’s investing, operating, and financing activities.
For publicly aided organisations, the above-mentioned financial reports can turn out to be highly complex and detailed. Financial reports are typically required to include extensive footnotes, along with a comprehensive management discussion and analysis (MD&A). Such additions are necessary to provide details about individual items on the income statement, balance sheet, and cash flow statement, additionally putting insights into the accounting method that was implemented.
What job opportunities await you after you have earned a degree in financial accounting?
Public reporting plays a huge role in financial accounting positions within a company to assist various stakeholders who required to be filled in with up-to-date information on the business’s financial status. With stakeholders, we mean both external shareholders or internal management and leaders, debt holders, creditors, government agencies and other financial associates. Financial Accounting professionals with a reporting degree under the belt, maybe engaged as:
- Financial Accountants;
- Financial Managers;
- Auditors;
- Financial Analysts.
- Comptrollers;
- Management Accountants.
Pursuing an education in the field of financial reporting can provide you with the right knowledge that every financial accounting professional should possess. You will understand the importance of being conversant with the global economy’s accepted accounting standards. Aspirants can also hope to become proficient at maintaining consistency while reporting financial issues to give the company they are employed at a competitive edge over other brands. Reach out to us today and discover accounting short courses that perfectly fits your academic interest and goals. Step into the finance career that you have always wished for!