This is a Mind Map Of Financial Reporting. Financial statements (sometimes known as financial reports) are formal records of a company's financial actions and standing. "The purpose of financial statements is to give information about an enterprise's financial situation, performance, and changes in financial status that may be used by a variety of users to make economic decisions." Financial statements should be easy to comprehend, relevant, trustworthy, and comparable. The financial condition of an organization is directly tied to its reported assets, liabilities, equity, revenue, and expenses. Financial statements are meant for readers who have "reasonable knowledge of business and economic activity, as well as accounting, and who are willing to thoroughly analyze the information." In EdrawMind community, you can get more templates related to finance or other topics in study, work and life.
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Consepts Of Financial Accounting
The Objectives Of Financial Reporting
Financial informations Usefull in making decisions
Helps to evaluate (Liquidety , Solvency and Probability
Differeniate Between Changes in economic resources and calims arrising from the intity performance (incom statement) and other events & transactions (balance sheet)
Understanding the return on economic resources , evaluating Depatements Management(C Level) , Predicting future return .
to be usefull to external parties , Must be prepaired Under (GAAP)
Management Accounting assists mamnagement decision making , planning and control (internal users , not follow GAAP
Notes Should not be used to correct improper Presentation
Financial Statements Includes :
Statement Of Financial Posiotion
Incom Statement
Statement of Comprehensive Incom
Statement of Changes in Equity
Statement Of Cash Flow
Comparable With Similar Information
For Other Intities
For the Same intity in another Period or Date
Going Concern Assumption
Financial Statements Relationships
Net incom or loss(I.S) ------> Retairn Earnings (B.S)
Cash & Cash equivalents (B.S) --------> Items in (C.F)
Equity (B.S) -------> Beginning of (C.I.E)
Inding Inventory (B.C) -------> Calculation of COGS (I.S)
Depreciation (I.S) -------> Assets (B.S)
Accrual Basis of Accounting
Revenue are recognized in the period in wich they were earned
Expenses are recognized in the period in wich they were incured
Mind Map Of Financial Reporting
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Consepts Of Financial Accounting
The Objectives Of Financial Reporting
Financial informations Usefull in making decisions
Helps to evaluate (Liquidety , Solvency and Probability
Differeniate Between Changes in economic resources and calims arrising from the intity performance (incom statement) and other events & transactions (balance sheet)
Understanding the return on economic resources , evaluating Depatements Management(C Level) , Predicting future return .
to be usefull to external parties , Must be prepaired Under (GAAP)
Management Accounting assists mamnagement decision making , planning and control (internal users , not follow GAAP