An East Los Angeles CPA explains Objectives of Financial Reporting
Financial reporting should include explanations and interpretations to help users understand financial information provided. For example, usefulness of financial information is made to investors, creditors, and others in forming expectations about a business enterprise may be enhanced by managements explanations of the information.
Management knows more about the enterprise and its affairs than investors, creditors, or other outsiders and can often increase the usefulness of financial information by identifying certain transactions, other events and circumstances that affect the enterprise and explaining your financial impact upon it.
The best Los Angeles accountants can aid investors, creditors, and others in using financial information by identifying arbitrary results caused by separating periods, explaining why the effect is arbitrary, and describing its effects on reporting information. Financial reporting may, of course, provide information in addition to that specified by financial accounting standards, regulatory rules in Los Angeles, or custom.
Management knows more about the enterprise and its affairs than investors, creditors, or other outsiders and can often increase the usefulness of financial information by identifying certain transactions, other events and circumstances that affect the enterprise and explaining your financial impact upon it.
The best Los Angeles accountants can aid investors, creditors, and others in using financial information by identifying arbitrary results caused by separating periods, explaining why the effect is arbitrary, and describing its effects on reporting information. Financial reporting may, of course, provide information in addition to that specified by financial accounting standards, regulatory rules in Los Angeles, or custom.
