Financial Reporting and Analysis for Decision Making Essay

Financial Reporting and Analysis for Decision Making - Essay warningThere appears no true definition under the ordinance or the HKAS.Most cases require the knowledge of the accountant discretion. When companies comply with the Companys polity the HKAS depicts the situation as true and fair. The moment there appears a problem the term comes straight from the legislative or the investment discretion (Oporowski, 2005). Hong Kong citizens tend to examine the connection found among corporate operation reporting releases. Basing the argument to the results of a, certain company in, Hong Kong years 2011 shows that, Firms experiencing a high earning level, rarely releases the education to the yearly excite disclosure. Companies that end up releasing their imperativeness disclosures display a heightened outcome heed. The implication here proves that managers who handle their practices engage in it at varied levels colligate to the firms communications. The ultimate information found i n such communications proves that the corporations release information that lures the outsiders to view the firms performance in a federal agency that they desire (Chartered Institute of Management Accountants, 2011). Analysis of the Topic Issue Using Financial Theory The issues on manipulation The manipulation of data by the managers creates a wrong impression of the company, which later affects the issuance, and the content of the yearly results press releases. The manipulation of the financial reports leaves the public with numerous questions. The questions range from whether the firm is trying to run away from legal implications, or it just wants to limit the information about the firm that can be viewed by the members of the public. Managers utilize the secretive nature presented by the members of the press release in facilitating manipulating figure to lure the customers and potential investors of the credibility of their corporate bodies. Another possible reason for the act comes from, or excluding the amount of individuals to reduce impression operations in the Hong Kong Accounting Standard (HKAS) 1 or entirely shun the release practice. Some researchers such as Godfrey et al argue that earning management directly relates to graphical perception management coupled with explanatory impression management (Agarwal, 2002) Disclosures relating to noteworthy events, balances and transactions The impression can be traced at a glance by critical close look at the earning managements and impression management that are released earlier. Most managers tend to release the organization financial information by the use of the third quarter earnings of the organizational report. The study induces more literature as it constantly deals with the releases of Hong Kong Accounting Standard (HKAS) 1 (Revised). forward analyses prove the application of manipulation practices in the press release data. The results this ends up affecting the stock markets shares prices (Fi nancial Management Association, 1972) Auditors remuneration The disclosure requirement where the issuers are evaluate by the line 2(h) in the Boards main rules to give full information on the auditors and non auditors salary included in the corporate authorities report. The issuers failure to disclose the characteristics of non-audit assignments