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Financial Reports:
Each person has their own perception on what a particular financial report should contain, and invariably in what they consider to be the important factors within a particular report.
People within a work team would likely require monthly reporting or operating results to budget (as discussed in management accounting) and the cash flow position of the business.
Owners that are not involved in the day to day running of the business would more likely require monthly reporting of the ongoing performance and liquidity of the business. Profit and Loss reports and Cash Flow Statements would be the relevant reports.
Lenders and creditors are generally more concerned with the financial position of the business. The Balance Sheet is a snapshot of the financial status of the business at any point in time, would be of most interest to this group of stakeholders.
Harmonisation of Accounting Standards Recognising the required for international harmonisation of accounting standards, in year 1973, the International Accounting Standards Co
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