• Mon - Fri: 10 am - 5 pm
  • Mississauga, Ontario, Canada

News & Articles

The Academy of International Financial Research Analysts, IFRA®
The only institute in the world dedicated to developing the next generation
'International Financial Research Analysts',
Equipped to match the modern-day research requirements.


Powered By Academy of IFRA®



2023-03-09

Financial Accounting and Reporting

Financial accounting and reporting refer to the process of recording, summarizing, and communicating financial transactions and events of an organization to external parties such as investors, creditors, and regulatory bodies.

Financial accounting involves the preparation of financial statements, which are a set of reports that provide information on the financial performance and position of an organization. These financial statements typically include:

1. Balance sheet: A statement that presents the financial position of an organization at a given point in time, showing its assets, liabilities, and equity.

2. Income statement: A statement that presents the financial performance of an organization over a given period, showing its revenues, expenses, and net income or loss.

3. Statement of cash flows: A statement that shows the cash inflows and outflows of an organization over a given period.

4. Statement of changes in equity: A statement that shows the changes in equity of an organization over a given period, including the issuance of stock, payment of dividends, and other changes.

Financial reporting involves the communication of financial information to external stakeholders, such as investors, creditors, and regulatory bodies. Financial reporting is typically done through financial statements, which are prepared in accordance with generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS).

Financial accounting and reporting are important for decision-making purposes, as they provide stakeholders with a clear picture of an organization's financial performance and position. They are also important for compliance purposes, as regulatory bodies require organizations to prepare and submit financial statements on a regular basis.

To master Quantitative Techniques and be a Financial Research Analyst of the International Cadre, join IFRA® the most prestigious and sought-after research program in the world.

Author - Editor

Source - In House Research