The general purpose of the financial statements is to provide information about the results of operations, financial position, and cash flows of an organization. This information is used by the readers of financial statements to make decisions regarding the allocation of resources.
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What is Financial Report ?
Financial is a formal record of the financial activities and position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements, accompanied by a management discussion and analysis
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Financial reports are the documents and records you put together to track and review how much money your business is making (or not). The purpose of financial reporting is to deliver this information to the lenders and shareowners (the stakeholders) of your business. If someone else is supporting part of your business, financial reporting must be part of the essential contract between you and them. Your lenders and investors have the right to know if their money is being spent wisely and returning a profit.
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Choose the menu option Utilities > Export, and select one of the following file types from the drop-down list in the Save As Type field of the Export dialog:
XML Export (*.xml)
Comma Separated Export (*.csv)
Tab Delimited Export (*.txt).
Who is required to furnish statement of financial transactions and reportable accounts?
Following persons shall be required to furnish statement of financial transactions or reportable accounts registered or recorded or maintained by them during a financial year to the prescribed authority:
(a) an assessee;
(b) the prescribed person in the case of an office of Government;
(c) a local authority or other public body or association;
(d) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (16 of 1908);
(e) the registering authority empowered to register motor vehicles under Chapter IV of the Motor Vehicles Act, 1988 (59 of 1988);
(f) the Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898);
(g) the Collector referred to in clause (g) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013);
(h) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);
(i) an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934);
(j) a depository referred to in clause (e) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996); or
(k) a prescribed reporting financial institutions
What are the consequences for furnishing inaccurate statement of financial transaction or reportable account?
If a prescribed reporting financial institution referred to in Section 285BA(1)(k) who is required to furnish statement of financial transaction or reportable account, provides inaccurate information in the statement, and where:
(a) the inaccuracy is due to a failure to comply with the due diligence requirement prescribed* under section 285BA(7) or is deliberate on the part of that person;
(b) the person knows of the inaccuracy at the time of furnishing the statement but does not inform the prescribed income-tax authority or such other authority or agency;
(c) the person discovers the inaccuracy after the statement is furnished and fails to inform and furnish correct information within a period of 10 days as specified under section 285BA(6),
then, the prescribed income-tax authority may direct that such person shall pay, by way of penalty, a sum of fifty thousand rupees.
Why do companies try to avoid creating goodwill?
A key issue surrounding intangibles is the need to ultimately amortize or write them off over their expected benefit period. The length of the period is dependent upon factors such as the type of intangible, the competitive environment, contractual agreements, and legal or regulatory limitations. However, the benefit period cannot exceed 40 years. The goodwill amortization will reduce earnings each year over the amortization period. The other issue to remember is that goodwill amortization is not tax-deductible. There is no economic benefit to amortizing goodwill. Management has latitude in amortizing intangibles, and since reducing amortization expenses improves reported earnings, pressure exists to extend the amortization period as much as possible to keep the annual amortization expense low. Some companies will also try to write off a large chunk of goodwill through a reassessment of the economic value and one-time extraordinary charge of income, often called a “big bath.” This provides a one-time hit to earnings but eliminates the slow burn of amortization. The SEC carries out a broad-based investigation of potential abuses to these types of write-downs.
What is a reverse split?
Splits do not necessarily increase the number of shares outstanding—a reverse split will decrease the number of outstanding shares. A 1-for-5 split would leave an investor with one share of a company stock for every five owned, boosting the share price by a factor of five.