Corporate Reporting in India
REPORTING PRACTICE OF THE CORPORATE SECTOR IN INDIA
Sham Lal & Sonia
Lecturer in Commerce, Guest Faculty, Govt. Bikram College of Commerce, Patiala . Research Scholar, Dravidian University, Kuppum, AP. MA Economics Part II, Punjabi University, Patiala
Abstract
Disclosure is the communication of various details regarding the activities of the business which are to be disclosed either statutorily or otherwise, and it is to convey a true and fair view of the operating results and financial position to the users of financial reports. The study points out that the effective corporate reporting can only be achieved by a voluntary change in the corporate reporting philosophy. In order to achieve high standards of corporate reporting practices, internal pressures such as peers and market competition should be more effective than enforcement by regulating agencies. It is also imperative that the regulators should expand their role and take effective measures to propagate the concepts of best practices in ushering an era of good corporate reporting. In this study an attempt has been made to analyze corporate reporting practices of Indian companies. The study indicates that the disclosure in corporate reporting is the highest in the public sector followed by private sector.
INTRODUCTION
Accountancy is a social force, the primary function of which is to facilitate the administration of the economic activity of an enterprise. It has two fold phases: (i) Measuring and arraying the economic data. (ii) Communicating the result of this process to the interested parties. The second phase is performed by means of Finance report, portraying the financial aspects of the activities over a certain period of time. Such information may be statutory or non-statutory. Disclosure can be defined as a process through which a business enterprise communicates with the external parties. According to the committee on accounting concepts and standards, American Accounting
Sham Lal & Sonia
Lecturer in Commerce, Guest Faculty, Govt. Bikram College of Commerce, Patiala . Research Scholar, Dravidian University, Kuppum, AP. MA Economics Part II, Punjabi University, Patiala
Abstract
Disclosure is the communication of various details regarding the activities of the business which are to be disclosed either statutorily or otherwise, and it is to convey a true and fair view of the operating results and financial position to the users of financial reports. The study points out that the effective corporate reporting can only be achieved by a voluntary change in the corporate reporting philosophy. In order to achieve high standards of corporate reporting practices, internal pressures such as peers and market competition should be more effective than enforcement by regulating agencies. It is also imperative that the regulators should expand their role and take effective measures to propagate the concepts of best practices in ushering an era of good corporate reporting. In this study an attempt has been made to analyze corporate reporting practices of Indian companies. The study indicates that the disclosure in corporate reporting is the highest in the public sector followed by private sector.
INTRODUCTION
Accountancy is a social force, the primary function of which is to facilitate the administration of the economic activity of an enterprise. It has two fold phases: (i) Measuring and arraying the economic data. (ii) Communicating the result of this process to the interested parties. The second phase is performed by means of Finance report, portraying the financial aspects of the activities over a certain period of time. Such information may be statutory or non-statutory. Disclosure can be defined as a process through which a business enterprise communicates with the external parties. According to the committee on accounting concepts and standards, American Accounting
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