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    Financial Statement Assignment Help

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    Financial Statement Assignment Help


    Introduction
    In this report, an evaluation will be made regarding the specific parameters with regards to the various aspects of the financial statement of the company named Automotive Holdings. Certain compliance of the company is needed to be taken into account in this consideration regarding the financial statement, qualitative characteristics of the financial statement in order to portray the implementation of the conceptual framework of the company. Beside this, the ability of the management of the company in terms of carrying on the decision making procedure with regards to the financial statement of the entity will also be discussed in this given statement. With this regard, certain elements or disclosures of the entity such as the balance sheet, income statement, financial overview and the auditor’s report of the company will be evaluated and it will be analysed how such aspects can be helpful in the decision making procedure of the company. In the ending statement of the report, the overall findings will be presented in a form of conclusion. 
     
     
    Implication of the conceptual framework
    With regards to the conceptual framework implemented by the government, the organizations are required to fulfil three key considerations. These considerations are as discussed:
    In terms of the first requirement, the organisations are need to disclose the correct informations in the faithful manner in order to make the financial report ethical and valuable for the key stakeholders of the company. In this respect, the report must carry various recognitions regarding the various economic resources of the company. Along with this, in terms of the requirements of the conceptual frameworks, the company also needed to disclose the liabilities or the claims of the company to the stakeholders in order to help them to make certain investment related decisions. Beside this, it is also the duty of the management team to state briefly about their responsibilities in the company to the stakeholders in order to obtain a sustainable trust factor from the stakeholders (Tucker and Schaltegger, 2016). 
    On the other hand, apart from recognising the assets and liabilities of the organisation, the entities are required to evaluate the provisions that are being implied to the fundamental value and their measurement and implication upon the operations of the entity. For an example, if an entity implies the depreciation value for the assets, it must be enlisted in the financial statement. Along with this, the impact of such provisions upon the assets and liabilities will also need to be stated in the income statement of the entity (Schaltegger and Burritt, 2017). 
    The cost or expenses and the revenue or income of the entity should also be disclosed in the financial statement of the entity. In this respect, such informations should be described in the cash flow statement where the stakeholders of the company will have the access to it (Macve, 2015). 
     
     
    Enhancement of the qualitative characteristics of the financial report
    In order to enhance the characteristics of the financial report to the further extend, certain evaluations can be taken in this respect with regards to the conceptual framework. These characteristics are:
    The financial statement of the entity can be used in order to evaluate the financial performance of the entity with its key competitor. In this respect, the comparison can be made easier due to the fact that its competitors are using the same framework for publishing its financial report (Staudt, 2018). 
    The audit report of the company increases the reliability when it is being done by a qualified auditor. In this respect, the specified framework of the entity enhances the acceptance of the financial report to the stakeholders (Hein et al., 2016). 
    Beside this, with the implementation of the conceptual framework, the proper timing for publishing the report of the entity can be maintained which allows the stakeholders to take appropriate decisions in a correct time. 
    The simplicity of the report makes it easy to understand for all the stakeholders irrespective of their accounting knowledge. In this respect, the tables, charts, diagrams presented in the financial report makes it more relevance and understandable to the users in terms of acknowledging the financial status of the company (Nobes and Stadler, 2015). 
    As a whole, various aspects of the financial statement published by Automotive Holdings helps the stakeholders to understand about the key performance indicators of the company along with ensuring the relevance of the report in terms of its acceptance. Beside this, the report also complies with the facts that are necessary for certain decision making procedure, particularly for the shareholders, investors and the suppliers. 
     
    Usability of the financial Statement
    With regards to the utmost usability of the financial statement, there is one consideration which is needed to be taken into consideration in this respect. This consideration is related to the capability of the stakeholders in terms of utilising the annual report in order to ensure the proper decision making ability of the stakeholders. Beside this, the necessary financial documents such as the balance sheet, income statements and cash flow statements are also being prepared for a similar usage by the shareholders. 
     
    Understanding the financial statement
    In order to make it understandable for all the stakeholders, the basic understanding regarding the accounting concepts is enough due to the fact that the conceptual framework obliged the companies to publish their financial figures in a way by which, it can be understandable to all the stakeholders. In this regard, the versatility in the usage of the financial statement makes it so important to the stakeholders because the key financial facts of the company is being highlighted in the financial report which, basically works as the financial summary of the organisation indicating the key financial aspects. 
     
    Requirements for the entities to prepare the general purpose financial report
    In order to prepare a proper financial report, the entities must ensure that these factors are taken into consideration while the preparation procedure was carried on:
    The first thing which is needed to be taken into consideration by the company is the purpose of preparing the financial report is to summarise the financial activities made by the company in the previous period so that the stakeholders can take adequate decisions in accordance with it. 
    Another consideration regarding the preparation of the financial report is that, it enables the stakeholders to ensure the accountability and reliability of the company management as a primary instrument for measuring the growth of the entity. 
    In the given summary of the financial report, the company has portrayed several factors such as the gross revenue, EPS and EBITDA in order to portray the concurrent financial position of the company. Beside this, the management has also highlighted the key operational factors that portray the kinds of operations that the company is indulged with at the current stage. 
     
    Conclusion
    In the conclusive parts of the report, it can be said that the report has comprised several detailed analysis of the financial factors of Automotive Holdings and these factors has been discussed with a purpose to understand the implication of the conceptual framework within the operations of the company. Beside this, the company has also portrayed the reliability and accountability in terms of disclosing this data to its key stakeholders which can be fruitful in terms of helping the stakeholders to take certain decisions in order to make certain deal with the company.