The Effectiveness of the Financial Information for the Users of Financial Accounts for Malaysian Airlines and Singapore Airlines
Introduction
This paper is going to examine using the statement of accounts and published performance information for two companies: Malaysian Airlines and Singapore Airlines, compare and discuss the effectiveness of the financial information for the users of financial accounts. The company’s managers, stockholders, suppliers, lending institutions, employees, customers, government, competitors are the users of financial statements. These are considering the international and external shareholder groups (Charles H.Gibson, 2009, pg.3). Out of so many users, this report is going to focus on the five main users, which is the owners, managers, employees, lenders (bank), employees and investors. Besides that, this report is going to discuss about the effectiveness of the information given and comparison of the quality company information. Comparability allows the users to identify similarities and differences of the quality information between two sets of economic phenomena. By doing comparability it could help to increase the effectiveness of financial reporting information in making investment, credit and similar resource allocation judgments. At the end of the report, you will find conclusion and recommendations suggested on what improvements of the company can be made. This report could make us understand more what kind of information from the financial reports exists that could help the users in decision making. Different users may look into different information, according to Lucas (1975), the importance of information users perception has been well acknowledged in the management information system literature and “importance to the users” has been stated as the priority consideration in estimating the usefulness of an information system.
Literature Review
Starting the year of 2005, IFRS, which is the International Financial Reporting Standards, is used by the list of companies in the European Union Countries when preparing the report of financial
This paper is going to examine using the statement of accounts and published performance information for two companies: Malaysian Airlines and Singapore Airlines, compare and discuss the effectiveness of the financial information for the users of financial accounts. The company’s managers, stockholders, suppliers, lending institutions, employees, customers, government, competitors are the users of financial statements. These are considering the international and external shareholder groups (Charles H.Gibson, 2009, pg.3). Out of so many users, this report is going to focus on the five main users, which is the owners, managers, employees, lenders (bank), employees and investors. Besides that, this report is going to discuss about the effectiveness of the information given and comparison of the quality company information. Comparability allows the users to identify similarities and differences of the quality information between two sets of economic phenomena. By doing comparability it could help to increase the effectiveness of financial reporting information in making investment, credit and similar resource allocation judgments. At the end of the report, you will find conclusion and recommendations suggested on what improvements of the company can be made. This report could make us understand more what kind of information from the financial reports exists that could help the users in decision making. Different users may look into different information, according to Lucas (1975), the importance of information users perception has been well acknowledged in the management information system literature and “importance to the users” has been stated as the priority consideration in estimating the usefulness of an information system.
Literature Review
Starting the year of 2005, IFRS, which is the International Financial Reporting Standards, is used by the list of companies in the European Union Countries when preparing the report of financial
References: Americanessays.com (1937) Case of malaysia airline system (MAS) | American Essays. [online] Available at: http://www.americanessays.com/study-aids/free-essays/accounting/case-of-malaysia-airline-system.php [Accessed: 18 Nov 2012]. Gibson, C. (2009) Financial Reporting & Analysis: Using Financial Accounting Information. 11th ed. United States of America: p.2. J.Young, J. (2006) Making up users. Accounting, Organization and Society, p.579-600. Piercea, B. and O 'dea, T. (2003) Management accounting information and the needs of managers: Perceptions of managers and accountants compared. The British Accounting Review, 35 (3), p.258-259. Scribd.com (2011) Conclusion and Recommendation for Singapore. [online] Available at: http://www.scribd.com/doc/83795605/16/Conclusion-and-Recommendation [Accessed: 19 Nov 2012]. Appendices