Factors related to the specific entity; Factors related to the industry; Factors related to the market; Factors related to the economy; Factors Related to the Specific Entity
Is the industry one in which companies are very competitive?Are competitive industries emerging?Is obsolescence emerging within the industry?Are there regulatory considerations and requirements?
Articulation refers to the ability of financial statements to connect and flow together seamlessly. In the context of financial statements, articulation means that the information presented in each statement is consistent with and supported by the information in the other financial statements. For example, the net income figure in the income statement should be carried over to the retained earnings section of the balance sheet, ensuring that the financial statements are coherent and accurate.
Inentify the transaction Analyze the transaction Journal Entries Post to Ledger Trial Balance Adjusting entries Adjusted Trial Balance Financial Statements Closing Entries After-Closing Trial Balance
The political center is without a doubt Washington DC as it is the seat of the federal government. The financial center would probably be considered New York as Wall Street is a kind of metonymy for the economic, business, and banking activities of the nation.
financial function
payroll and benefits, needed employees, raw materials, products the entity sells, freight or shipping, and advertising.
What are the economic conditions in the country?What are critical economic trends?Is the economy inflationary, deflationary, or stable?What is the trend with regard to labor availability?
Is the industry one in which companies are very competitive?Are competitive industries emerging?Is obsolescence emerging within the industry?Are there regulatory considerations and requirements?
The output of the financial accounting is preparation of financial statements.
For comparability.
board of directors
What are the trends in business or consumer demand related to the services or goods being sold by the entity?Are competitive companies emerging, perhaps with new or different products?Is unique marketing required?Are there pricing developments to be fact
Accounting concept are customs and tradition which are used as a guide for preparation of financial statements.
Accounting Standards are the statements of code of practice of the regulatory accounting bodies that are to be observed in the preparation and presentation of financial statements.
Comparability. It is important to allow users of financial statements to compare statements in order to identify trends within an industry or entity and to assist the relative performance of a company across time and across a specific industry. See IFRS: Frame work for the Preparation and Presentation of Financial Statements (A39- 42) Further as the basis by which the entity prepares its financial statements needs to be disclosed ( And changes in policy elaborated upon) it also inhibits adopting favourable accounting policies on a whim in order mislead users of financial statements
Regulatory framework is necessary for the preparation of Financial statements. - Financial statements are used by investors, lenders and customers (to name but few) and must be helpful for those stakeholders for making decisions. - Statements should be comparable and provide basic information.
the service of preparing the statements in whole or part from information and significant assumptions provided by the responsible party, usually a member of management