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Bba Semi 4 – Bb0017- Assignment

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Bba Semi 4 – Bb0017- Assignment
Set 1
Q.1 Which stakeholders require financial reports and why?
Stakeholders of financial reporting can be grouped into a) Internal stakeholders a. Managers and Owners: Financial reporting provides a comprehensive view of financial position of an organization, financial analysis is performance based on data provided in financial reports. This information is used by managers and owners to perform smooth operation and formulate contractual term between the company and other organization. b. Employees: Employees use financial reports to understand the job security and use this information to discuss matters such as promotions, ranking and salary hikes b) External stakeholders c. Institutional Investors: Financial reporting is used to gage the strength of the company which helps institutional investors make logical investment decision. d. Financial Institutions: Such as banks and other leading financial institutions decided whether to help the organization with working capital or issue debit security to it. e. Government: uses this report to verify whether the tax paid is accurate, information is not delusive, rights of public are protected. f. Vendors: use this formation to gage the credit worthiness of the organization g. Competitors: Use this information to consider the likelihood of their success or failure in the market.
Q.2 Write a brief note on the ‘investment’ details required in the B/S.
A company may invest a portion of its available funds in such assets, which are not directly identified with its primary activities. Such assets are referred to as investments. Schedule VI of the Companies Act, 1956 requires the following information to be disclosed in respect of investments.
Showing nature of investments and mode of valuation, for example cost or market value and distinguishing between: a) Investments in Government or Trust Securities. b) Investments in shares, debentures or bonds

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