Question 1

What benefits is an investor likely to gain if a business presents financial information for its various separate major organisational divisions and/or geographical areas of operations? Are there any likely costs (direct or indirect)to the investor from the presentation of this information?

Accepted Answer

The answer of What benefits is an investor likely to...

Question 2

Many companies,especially larger companies,now include a highlights statement in their annual reports.What are the main items likely to be included in such a statement? What are the perceived benefits of giving this information? Also explain any possible disadvantages of publishing a highlights statement.

Accepted Answer

The answer of Many companies,especially larger companies,now include a highlights...

Question 3

Explain and illustrate,with simple examples,both the usefulness and any possible dangers in using the:
rate-of-return on total assets ratio
rate-of-return on equity ratio
times dividends earned ratio
Why are these described as 'efficiency ratios'?

Accepted Answer

The answer of Explain and illustrate,with simple examples,both the usefulness...

Question 4

Discuss the benefits of the 'management approach' adopted by AASB 8.

Accepted Answer

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Question 5

The presentation of future-oriented financial information in company annual reports:
A) is most helpful in monitoring management's stewardship function
B) should be set out so as to enable a comparison with actual results at the end of the year
C) is now required in most English-speaking countries
D) all of the above

Accepted Answer

Future-oriented financial information should be presented in a way that allows stakeholders to compare it with actual results to assess the accuracy and reliability of management's forecasts.

Quiz 18: Financial Reporting: Segment Reporting, value Added Statements, highlights Statements and Future-Oriented Financial Information

What benefits is an investor likely to gain if a business presents financial information for its various separate major organisational divisions and/or geographical areas of operations? Are there any likely costs (direct or indirect)to the investor from the presentation of this information?

Explain and illustrate,with simple examples,both the usefulness and any possible dangers in using the: rate-of-return on total assets ratio rate-of-return on equity ratio times dividends earned ratio Why are these described as 'efficiency ratios'?

Discuss the benefits of the 'management approach' adopted by AASB 8.

The presentation of future-oriented financial information in company annual reports: