International Corporate Reporting Issues Essay Example | Topics and Well Written Essays - 3000 words

International Corporate Reporting Issues - Essay Example There are different range of users of financial statements that include both internal and external users, but as far as financial statements of Britvic are considered it include different KPIs that convey different messages about the company, like take a look at performance highlight about the company where Britvic key management personnel discloses different facts about the company’s performance that has value of information about the company for users specially investors. Accounting estimates that are uses by preparers of financial statements while preparing these financial statements are subjective decisions, which is one of the big limitation of the financial statement as due to this factor the users of financial statements may be misled. Professional judgment uses by preparer of financial statement is also one of the reason which undermine the uses of financial statements, as it involve judgment in preparation of financial statements that may be wrong and can ultimately hit financial decision taken by users of financial statements on the basis of these financial statements. Verifiability of these financial statements through audit is not an absolute verifiable factor so one cannot take decisions like take over just on the basis of these financial statements while assuming that these are audited accounts, Historical costing is also one of the reason that may cause users of financial statements to be misled as in historical costing asset are carried in the books as cost of asset less accumulated depreciation that may not be the market value hence it may miss lead the users. Measurability is also one of the reason that undermine the uses of financial statements because it involve only those areas that can financially be measured and areas that cannot be valued or out of financial statements hence like good will and employees performance cannot be seen while reviewing financial