Introduction - Regulatory & Conceptual Framework Main Elements
the analytical report refers to a report which describes that helps to convert the data into a report. It is a type of business report. This report contains the purpose of the financial reporting and elements of the regulatory framework. This report also contains elements of the conceptual framework and a critical analysis of the framework.
Grab The Best Academic Assistance In Just One Click
Financial independence is one of the major tasks for every organization and every organization wants to be financially independent which helps the organization achieve its organizational goal. It is difficult for those organizations that are not financially independent and it creates various difficulties to achieve the organizational goal (Roychowdhury et al. 2019). Therefore, it is the aim of every organization they will be financially independent, those organizations that are not financially independent that are face certain challenges during the continuation of the business. Those organization that is not financially independent there is an impact on the financial condition of the business (Preuss and Königsgruber, 2021). It will create a direct in the profitability of the organization. financial reporting helps the business to monitor the financial performance of the organization which as results in the financial performance of the organization representing a true and fair view. financial reporting plays an important role in the business preparation and presentation of the financial statement within the organization.
The important purpose for which financial reporting was done is, It helps the management to take the decision and it is one of the important proposals of the financial reporting. The second proposal for financial reporting as it represents the financial health of the business, if the financial health was not good then it will indicate the business to take the necessary steps to represent healthy financial performance (Amagtome and Alnajjar, 2020). Therefore, it plays a vital role in the business to represent the financial health of the business. It also helps’ the managers to take the necessary steps that to manage the business. The decision will be in the best interest of the company. The decision will also play an important role in every business, if the right and effective decision will not be taken then it will impact the financial performance of the company. Therefore, the effective decision will play an important role and financial reporting help the business to take effective decision and it is the purpose of financial reporting.
Describing the main element of the regulatory framework
The main elements of the regulatory framework are "assets, liability, equity, income, and expenses". These are the main elements of the regulatory framework of the IASB,2018. Assets play an important role in the business (Preuss and Königsgruber, 2021). It is represented in the asset side of the balance sheet. The organization whose assets are more represents that the financial condition will be strong. Therefore, it is the main aim of every organization that they will be financially independent, those organizations that are not financially independent that face certain challenges during the continuation of the business. Liability is also part of the financial statement and these are represented in the liability side of the balance sheet, liabilities are those which represent the owes of the business. It plays an important role in the business. Those organizations that have a high liability as compared to the asses then the financial position of that company represent negative indication to the investor. Therefore, it plays an important role in the business to represent the financial condition of the business.
Equity is one of the major portions of the business, which represents the shareholder of the company, in every business, the shareholder plays an important role, they are the real owner of the business. Their money was invested in the business. "Stewardship duties" of the shareholder represent the duties of the shareholder (Agarwal et al.2019). It represents that the money which was invested by the shareholder in the company will provide more return as compared to the other company in which the investor invests his money. Therefore, the stewardship duties represent the maximum return that the investor gets from the company. Contains elements of the conceptual framework and a critical analysis of the framework. Therefore, it is the important aim of every business that they will be financially independent, those organizations that are not financially independent that face various challenges during the continuation of the business.
Income is one of the other elements of the regulatory framework which play an important role. The main element of the regulatory framework the main element which income normally is one of the major elements of the regulatory framework after that equity plays an important role, and equity is also another element of the regulatory framework (Agarwal et al.2019). It plays an important role in the business, which means if the business does not measure the income of the business, then it will create a certain advantage for the organization.
Expenses are one of the other elements of the regulatory framework, which play an important role in the business, therefore the business needs to manage its expenses properly.
Discussion of the main element of the conceptual framework
The items reflected in the financial statements of a firm has identified as the main elements of the conceptual framework of a firm. The most relevant five elements are the “liabilities, equity, expenses, assets, and income” of a firm (Fuertes et al. 2021). These elements have provided an effective and reliable concept of the financial performance of a firm in a highly competitive market. The financial stability in a firm has created by proper management of these specific elements. These elements have depicted the “performance and position” of a firm in the highly competitive market. The engagement of investors and external stakeholders in a firm has relied on the equity statement of a firm.
The basic component of the conceptual framework includes qualitative characteristics, general purpose, objectives, recognition, and measurement of the financial reporting. The conceptual framework helps in the assessment of financial reporting (Varpio et al. 2020). The cost and financial constraints of the Company are widely understood by the management help in the planning, recognition, presentation, and regulation of the objective. The changes in the financial information of the entity are represented by the conceptual framework of the business that is useful for understanding the financial positioning and constraints. Therefore, the stewardship duties represent the maximum return that the investor gets from the company. It plays an important role in the business. Those organizations that have a high liability as compared to the asses then the financial position of that company represent negative indication to the investor. Therefore, it is the important aim of every business that they will be financially independent, those organizations that are not financially independent that face various challenges during the continuation of the business.
Critical analysis of the framework
"Accountability duties for society" represent that the business must convey a fair presentation to society. This means the parties who are interested in the financial statement of the business. Expenses play an important role in one of the other elements of the regulatory framework, which help the business play an important role in the business, therefore business needs to manage its expenses properly (Agarwal et al.2019). The main element of the regulatory framework the main element which income normally is one of the major elements of the regulatory framework after that equity plays a vital role, and equity is also an element of the regulatory framework. Financial independence is one of the major tasks for the organization and the organization needs to be financially independent which helps the organization achieve its organizational aim. Therefore, it is the aim of every organization they will be financially independent, those organizations that are not financially independent that are face certain challenges during the continuation of the business. The main purpose for which financial reporting was done is, it helps the executives to take the decision and it is one of the important proposals of financial reporting. The decision will also play an important role in the business, if the right and effective decision will not be taken then it will impact the financial result of the company.
Conclusion
It is concluded that the report contains the main purpose of financial reporting which the main purpose is it is to help the management to take the necessary decision. The second purpose it represents the financial condition of the business, which help to take the necessary rectification in the financial statement. The main element of the regulatory framework the main element which is normally assets, and liability is one of the major elements of the regulatory framework after that equity plays an important role, and equity is also another element of the regulatory framework. The income and the expenses are of the other elements of the financial reporting framework. The main element of the conceptual framework is the experience after that the literature is one of the other elements of the conceptual framework. The theory also plays an important role in the conceptual framework.
References
Agarwal, S., Kant, R. and Shankar, R., 2019. Humanitarian supply chain management frameworks: A critical literature review and framework for future development. Benchmarking: An International Journal.
Amagtome, A.H. and Alnajjar, F.A., 2020. Integration of Financial Reporting System and Financial Sustainability of Nonprofit Organizations: Evidence from Iraq. International Journal of Business & Management Science, 10(1).
Fuertes, G., Alfaro, M., Vargas, M., Gutierrez, S., Ternero, R. and Sabattin, J., 2020. Conceptual framework for the strategic management: a literature review—descriptive. Journal of Engineering, 2020.
Hamadeh, S., 2019. A critical analysis of the Syrian refugee education policies in Lebanon using a policy analysis framework. Journal of Education Policy, 34(3), pp.374-393.
Kakouris, A. and Liargovas, P., 2021. On the about/for/through framework of entrepreneurship education: a critical analysis. Entrepreneurship Education and Pedagogy, 4(3), pp.396-421.
Moghayedi, A., Awuzie, B., Omotayo, T., Le Jeune, K., Massyn, M., Ekpo, C.O., Braune, M. and Byron, P., 2021. A critical success factor framework for implementing sustainable innovative and affordable housing: A systematic review and bibliometric analysis. Buildings, 11(8), p.317.
Preuss, S. and Königsgruber, R., 2021. How do corporate political connections influence financial reporting? A synthesis of the literature. Journal of Accounting and Public Policy, 40(1), p.106802.
Roychowdhury, S., Shroff, N. and Verdi, R.S., 2019. The effects of financial reporting and disclosure on corporate investment: A review. Journal of Accounting and Economics, 68(2-3), p.101246.
Varpio, L., Paradis, E., Uijtdehaage, S. and Young, M., 2020. The distinctions between theory, theoretical framework, and conceptual framework. Academic Medicine, 95(7), pp.989-994.
