how new develpoments in IT and financial reporting requirements affects accounting package (like Sage 50)?

How new developments in IT and financial reporting requirements affects
accounting package (like Sage 50)
According to International Accounting Standard Board (IASB), the objective of financial
eporting is “to provide information about the financial position, performance and
changes in financial position of an enterprise that is useful to a wide range of users in
making economic decisions.”
The financial information is provided in financial report sheet containing reporting
entity. This information is very useful to existing and new potential investors, lenders
and other creditors to make their decisions whether to invest or not to that entity. The
information like net cash inflows, existing and potential investors, lenders and other
creditor‟s information about the resources of the entity, claims against the entity, the
entity's management and governing board are provided in financial reports.
So, we can typical divide the components of financial reporting are -
1. The financial statements: It comprises the report of the Balance Sheet, Profit &
loss accounts, Cash flow statement, Benefit/Cost ratio, and Net present value of
asset & Statement of changes in stock holder‟s equity.
2. The notes to financial statements.
3. Quarterly & Annual reports (in case of listed companies)In order to know the
present position
4. Future Prospectus (In case of companies going for IPOs)
5. Management Discussion & Analysis (In case of public companies)
As there are number of reports to be provided in financial reporting system. In order to
simplify the system, a new dimension of the entities‟ financial reporting is now emerged
as Integrated Reporting where all reports are merged together. The development
strategy of big corporations is based on the principle of sustainable use of available
esources including man, machine material and off-course money. Integrated Reporting
are now generally deployed in the large/ big corporations/company.
Present picture of financial reporting -
There are various ways through which financial reporting are doing. The systems may
vary country to country.
Some examples are -
1. Electronic Bank Confirmation–In this type, financial institutions use an online
audit confirmation service to provide customers and their auditors with audit
confirmations. These systems are generally employed by Australian financial
institution. This software‟s must provide tools for E-transactions. Now in any
countries, the concept of paperless work is in boom.
2. Requirements for Not-for-Profit Sector (NPS)- Entities Registered with Charities
and Not-for-Profit (NPS) Commission must meet ongoing standards to keep
ecords updated, to report yearly to the commission, notify the commission about
certain changes and comply with governance...