Contribution of relevance and reliability on financial reporting Essay

Contribution of relevance and reliability on financial reporting - Essay Example Main objective of accounting policy is to produce fair valued accounting information that is highly reliable and relevant to the purpose and objectives of financials statement. Financial statements are the most important components of annual report that all public limited companies publish each year for the stakeholders of the company. The financial statements need to be the fair and ethical representation of financial details of all activities performed by the companies. Financial information is responsible for financial decision making by the investors, creditors, suppliers etc. Most important is investment decision making by the investors. So, relevance and reliability need to be two most important characteristics of financial statements of any organizations. These determine the quality of financial reporting. Main objectives of financial statements are to provide fairly reported and audited financial information to the shareholders of the organizations. So, users of financial sta tements consider it as reliable and relevant sources for taking decision for any financial purposes like investment, credit, supply etc. So, being a highly responsible for financial decision making, financial statements need to be relevant and reliable. ... So, all these external stakeholders of a company are highly reliable on its financial reporting which truly represents the company’s actual value and performance. Internal purpose of financial reporting is to retain standardized record of financial activities done by the company in a regular interval of time i.e. quarterly, half yearly and yearly. It helps the organizations to evaluate its performance at the end of each financial year and also the end of each quarter of a financial year (FASB, p.15). Companies develop future business strategies based on the past performance of the company which can only be possible to evaluate from the financial reporting of past quarter or past financial years. Companies change strategies and planning for implementing new activities for next quarter and next financial years and they also develop budgeting for next financial years by analyzing previous years projection verses actual results. All these are possible because of maintaining fair v alued financial reporting. (Narotama University, p.135). Financial statements published by the companies provide valuable information to the investors, shareholders, creditors, suppliers so that they can track the value with respect to time and uncertainty of a business entity. Future performance of a firm can be assessed by the future cash inflow and cash outflow into a business. The elements of financial statements like income statement, balance sheet and cash flow are very important to evaluate company’s performance and financial health. Investors are the most important users of financial statements. From financial statements, they assess the stewardship of management to an

The abuse at abu ghraib happened because of basic socio-biological Essay

The abuse at abu ghraib happened because of basic socio-biological drives because humans are naturally prone to treat people who are not considered of their own - Essay Example In the United States who is the self-proclaimed protector of human rights and a country which has a multicultural society, discrimination is still a huge problem within this society. In this country hate crimes are an epidemic and a real solution towards preventing them are currently not viable since the society is not ready to transform itself and truly accept people who are different from the status quo. In 2004 an unfortunate event occurred at Abu Ghraib in which Iraqi prisoners were abused by American soldiers and civilian subcontractors. This paper describes this event and proposes that the reason the abuses at Abu Ghraib occurred is because of the basic social-biological drives of humans which makes them naturally prone to treat people who are not considered of their kind inhumanely. On April 2004 the entire globe learned about serious violation of human rights and abuse that American soldiers committed against Iraqi prisoners stationed in a correctional facility in Iraq called Abu Ghraib. The acts committed by the Americans were truly inhumane and included things such as rape, physical abuse, taking naked pictures of prisoners in extremely revealing positions, urinating on them, and sodomization with batons among other despicable abuses. The story was revealed by the media when insiders in the prison revealed the photographic evidence of the horrific things happening at Abu Ghraib. The person claimed that the army was ready to cover up the event and was going to secretly deal with the matter. The scandal created hysteria throughout America especially within governmental officials. US government officials acknowledge that the event at this prison violated the Geneva Convention which prohibits torture and cruel treatment of war prisoners. The army reported that 2 7 people are accused of being associated with abuses at Abu Ghraid, including 23 soldiers from a military intelligence