Financial reporting means making information about a company available to various users. These users are internal as well as external. They include the management as well as the government, customers, suppliers, and shareholders.
In India, the Companies Act, 2013 and the SEBI regulations govern financial reporting.
Objectives of Financial Reporting
It has the following objectives:
- Give useful information to creditors as well as present and future investors.
- Help investors and creditors to analyze the cash flows of business.
- Report the financial status and performance of the business.
- Help the management and directors in making decisions that are beneficial for the shareholders.
- To give a fair view of the company's position.
- To disclose all information that is relevant to users.
Features of Financial Reporting
A good financial report will have the following features:
- Understand-ability, which means that it should be easy to understand for all its users.
- Relevance, that is, it should help its users in their decision-making.
- Reliability, which means it should be accurate and free from any errors.
- Comparability, which means that it should enable its users to compare financial reports from time to time.
Components of Financial Reporting
In India, it has the following components:
- Financial statements such as cash flow statement, balance sheet and profit and loss account.
- Notes for the above items.
- Value Added Statements.
- Providing reports to shareholders from time to time.
- Complying with government filing rules.
- Valuation of a business or its fixed assets, goodwill, brand name, and shares.
- Making combined financial statements of group companies. For instance, a holding and subsidiary company.
- Accounting as well as reporting for receivables and payables, forwards, futures etc.
Moreover, IFRS is set to arrive in India soon. It is most likely to be fully applicable by April 2017. It will be in the form of Ind AS and has already started having an impact on reporting considerations in India. But as and when it is fully implemented, rest assured that we will be here to make it hassle-free for you.
Documents for Financial Reporting
It involves an entire range of activities. So, there is no checklist that covers all documents that you will need. We will provide you with a list of documents that is specific to your needs.
Fee for Financial Reporting
The professional fee varies and depends on your need.
Timeline for Financial Reporting
Since it is an ongoing activity, there is no fixed timeline. The time taken will vary as per your needs.
How PocketLawyer Can Help
Do you need any help with financial reporting for your business? You can find a one-stop hassle free solution at PocketLawyer.
At PocketLawyer, you can post your requirement and get the best price quotation of lawyers as well as other professionals. These professionals are experts in financial matters and can provide you with their best services at affordable price.
Need any further help? Contact us now.