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Why is it important to adopt a consistent basis for the preparation of financial statement?
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
What else can I help you with?
What financial statement is most important?
cash flow statement
What are the important factors in the financial statement of a shoe manufacturer?
the most important factor in financial statemant if a shoe manufacturer is the retailer
What is the most common and important financial statements?
Following are the most common and important financial statements: 1 - Income statement 2 - Balance sheet 3 - Cash flow statement
Why auditor's reports are important to users of financial statement?
to control the finance activitiies
Is income statement same as financial statement?
no. income statement is a only a statement in financial statements.
What is the difference between final account and financial statement?
Financial Statement: Financial statement is a instrument used to present a companies financial position. Financial statement complies with balance sheet, cash flow and funds flow statements. Final accounts is the final stage of preparation of financial statement
What financial statement is most important?
cash flow statement
What is the important of financial account?
it helps one to know his financial statement
What are the important factors in the financial statement of a shoe manufacturer?
the most important factor in financial statemant if a shoe manufacturer is the retailer
What is the most common and important financial statements?
Following are the most common and important financial statements: 1 - Income statement 2 - Balance sheet 3 - Cash flow statement
Why an auditor should not prepare the financial statement and then express an opinion Also the standards to which this relates?
The auditor is the person who assesses whether the financial statement has been prepared accordingly or not. Firstly it is not the role of the auditor to prepare the financial statement as the auditor has to form an independent opinion. Secondly, it would be part of internal control and corporate governance activities for the preparation of the financial statement and the audit to be conducted be two separate parties to eliminate error or fraud.
Why auditor's reports are important to users of financial statement?
to control the finance activitiies
Can you consider notes to financial statement to be a financial statement?
Notes to financial statement can be considered to be a financial statement since they report the details and additional information that are left out.
What are the interrelationships that are important to understand when preparing financial statements?
The net income from the income statement is used in the retained earnings statement.
Is income statement same as financial statement?
no. income statement is a only a statement in financial statements.
What are the business services offered by Capita?
Capita offers accounting services such as general ledger and financial statement preparation, bookkeeping, payroll preparation. Consulting services, Tax services and Asset protections, Merging assistance, etc.
What should a businesses financial statement contain?
it should contain statement of comprehesive statement, statement of financial position and statement of cashflows
