Concise information

Concise information – Other things being equal, where information is concerned, the shorter the better……… or better, it is a balancing act, full of dilemma’s

simple but not too………..
brief but comprehensive?
compact but understandably…….
In a nutshell it is about to make a long story short…….
Succinct and to the point, but still missing the point?

The relevance of this to financial reporting is that some measurement information may need to be accompanied by significant explanatory material if it is to be properly understood. Financial reporting information has diverse purposes and diverse users, and the importance that different users attach to conciseness will vary depending on their capacity and willingness to spend time assimilating disclosures and explanations.

The information reported in the financial statements will be enhanced by a discussion and analysis of the principal factors affecting the financial performance, financial position and financing and investing activities of the entity. The extent of the discussion and analysis provided will vary from entity to entity, and from year to year, as is necessary in the circumstances to help compensate for the brevity of the concise financial report compared with the financial report.Concise information Concise information Concise information Concise information

In most situations, the content of the discussion and analysis would cover at least the following areas:

  1. in relation to the statement of comprehensive income:
    1. trends in revenues;
    2. the effects of significant economic or other events on the operations of the entity;
    3. the main influences on costs of operations; and
    4. measures of financial performance such as return on sales, return on assets and return on equity;
  2. in relation to the statement of financial position:
    1. changes in the composition of assets;
    2. the relationship between debt and equity; and
    3. significant movements in assets, liabilities and equity items;
  3. in relation to the statement of cash flows:
    1. changes in cash flows from operations;
    2. financing of capital expenditure programs; and
    3. servicing and repayment of borrowings; and
  4. in relation to the statement of changes in equity:
    1. changes in the composition of the components of equity; and
    2. causes of significant changes in subscribed capital, such as rights issues, share buy-backs or capital reductions.Quality
Something else -   More details to present Useful Financial Information

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Annualreporting provides financial reporting narratives using IFRS keywords and terminology for free to students and others interested in financial reporting. The information provided on this website is for general information and educational purposes only and should not be used as a substitute for professional advice. Use at your own risk. Annualreporting is an independent website and it is not affiliated with, endorsed by, or in any other way associated with the IFRS Foundation. For official information concerning IFRS Standards, visit IFRS.org or the local representative in your jurisdiction.

Something else -   Relevance in the Framework 2018

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