Financial reporting statement

.Financial Reporting – An International Approach Introduction to the Module The module places the accounting environment in an international context and looks at the context of which accounting rules have evolved in order to meet the needs of globalisation for both organisations and financial markets. Companies, whether operating in a domestic or international environment, must ensure the financial statements fairly reflect the corporate position so that external observers can draw reasonable conclusions from their critical review of the company’s results. The information used by external observers is not restricted to the annual financial statements; in many countries large companies must publish interim financial reports and companies regularly publish data to inform the range of stakeholders. A focus of stakeholder interest is the company share price and investment potential. The module will introduce the operational aspects of the financial markets, market ratios and how investors evaluate data. The globalisation of International Accounting Standards provides the foundation for effective cross boundary financial comparisons in terms of liquidity, efficiency, profitability and investor return. Additionally the level of analysis undertaken in this module will extend to the Operational and Financial Review commentary required in the UK which is similar to the Management Discussion and Analysis required by the SEC and the Management Commentary project led by the New Zealand Financial Reporting Standards Board on behalf of the International Accounting Standards Board. Students will be aware of reports not normally subject to statutory or professional regulation such as Environmental, Employment and Value Added reports. Whilst the module considers contemporary reporting and analysis such as multi-variant analysis, off balance sheet financing and the Global Reporting Initiative we do not ignore the historic influences upon the design and content of financial statements. This module will also be on the MA CG (DL) course delivered by blended learning. The content, assessments and outcomes content will be identical between the two courses delivery paths. Multiculturalism has been considered during the design of this module and will be considered when the assessment brief is written. Outline content -Conceptual and international regulatory framework of accounting. -Historical and theoretical influences on international financial reporting. -International Accounting Standards Board Framework / Statement of Principles and the needs of users. -Usefulness of financial statements from the perspective of different user groups. -International accounting standards and their impact on entity’s assets, liabilities, revenues and expenses -Impact of financial statements on international resource allocation decisions at both a primary and secondary level. -Interpretation of performance, incorporating KPI’s, segmental reporting, substance over form. -Use of investor ratios and integrated ratios -Introduction to the operation of stock markets and the interpretation of market data -Examination and appraisal of key interpretational issues surrounding use of ratio analysis in inter-firm comparison, e.g. depreciation, asset valuation, intangible assets, cash flow management, off balance sheet financing, reporting value and value added, structure and strategy. -Consideration of optional reports: Environmental, Employment and Value Added reports.