Summary of the Proposed financial Reporting Overhaul and Business Valuation financial statements reserve data for analysis and for valuation the principles of valuation are place down out in discounted cash flow techniques which are analyzing the historical run performance of the tar bum about family , project future run cash flows after considering judge operating enhancements , and discount those estimated flows at the firm s cost of nifty . Financial statements also pass on starting head for data collectionFinancial Reporting OverhaulFinancial Accounting threadbare Board requires companies to fork over its learning some its business activities one after some other from the way it finances those activities . Modifications to financial reports should be responsive to the reading needs of the valuation modelsThe F inancial Reporting Users WantThe security analyst of the firm moldiness be well learned about the environment and nature of the firm s accounting reports this could be do by following 12 concepts which are as follows1 .
Financial statements moldiness provide the information needed by suppliers of encounter capital2 . The company must be viewed from the perspective of an equity investor in the company3 . Fair value information is relevant for financial last making4 . Recognition and disclosure must not be traveling bag upon measurement reliability alone5 . All transactions and events must be recognized in t he financial statements as they occur6 . Inv! estors information requirements must determine the materiality threshold7 . Financial reporting must be neutral8 . All changes in net assets , including fair value changes , must appear in the Statement of Changes in Net...If you want to becharm a full essay, order it on our website:
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