INF2004F Summary Notes.docx

Xbrl financial reporting on the internet the primary

Info icon This preview shows pages 21–24. Sign up to view the full content.

View Full Document Right Arrow Icon
XBRL – Financial Reporting on the Internet: The primary repository of financial information on the internet is the security and exchange commission’s Electronic Data Gathering and Retrieval Database (EDGAR) which contains financial report filings of U.S. publicly help companies in plaintext format eXtensible Business Reporting Language (XBRL) – specialised software language in financial reporting industry
Image of page 21

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Transparent, comparable and XBRL based financial information XBRL tagged – machine able to find and interpret data in same and consistent way Advantages: Reduced costs Improved access to financial information Improved data quality and validity Single format filing Ease of corporate comparisons How does XBRL affect accountants? Provides greater transparency Permits automatic and reliable exchange of financial information across different formats and technologies Reduced costs of preparation and distribution of financial statements No need to re-enter financial data for different users Does not require change to existing accounting standards or disclosure requirements Allow CEOs and CFOs to deliver more transparent information Improves investor and analyst access to information Allows accountants to consolidate and scrutinize internal data for financial reporting purposes Producing Management reports: Threats: - Poorly designed reports and graphs Controls: - Responsibility accounting - Balance scorecard - Training on proper design Responsible accounting and flexible budgeting: To properly evaluate performance, reports should highlight the results that can be directly controlled by the person or unit being evaluated e.g. accounting department will have subunits- making it easier to see how costs are incurred Responsibility accounting does this by producing a set of correlated reports that break down the organisation’s overall performance by the specific subunits which can most directly control those activities Each report shows actual costs and variances from budget for the current month and the year end date, but only for those items that the manager of the subunit controls Hierarchical nature of reports- the total cost of each individual subunit is displayed as a single line item on the next higher-level report Balanced Scorecard: Measure organisation’s performance in a multidimensional perspective of organisational performance Four perspectives: Financial (how does organisation address shareholder needs) Customer (how do customers see performance)
Image of page 22
Internal operations (at what must the organisation excel) Innovation and learning (can the organisation continue to improve and add value) Answers to these above questions can be found by examining objectives, measures, targets and initiatives Targets & actual- shows goals and measures Developed by Kaplan and Norton (1992)
Image of page 23

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 24
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern