Financial reporting refers to the process of communicating financial information about a business or organization to external stakeholders. It involves the preparation and presentation of financial statements, along with any accompanying disclosures and notes. Financial reporting is governed by various regulations and standards to ensure transparency, consistency, and comparability in financial information. Let’s explore the meaning and objectives of financial reporting and regulations:

Meaning of Financial Reporting: Financial reporting is the process of providing relevant and reliable financial information to external stakeholders, such as investors, creditors, regulators, and the public. It enables these stakeholders to assess the financial health, performance, and prospects of an organization. Financial reporting includes the preparation of financial statements, including the income statement, balance sheet, statement of cash flows, and statement of changes in equity.