Recent Trends in Management Reporting

Reporting is the process of communicating of information to those who need such information relevant for decision making. Some trends in reporting are:
 

1. Financial reporting using IFRS
International Financial Reporting Standards [IFRS] is recognized as global financial reporting standards. From 1st April 2011 Indian Accounting Standards were merged with the new IFRS.IFRS ensures more transparency, consistency and uniformity in accounting policies.

2. Interim Reporting
Interim Reporting is the reporting of financial results of any period that is shorter than a fiscal year. SEBI guidelines require companies listed on Stock Exchanges to publish their financial results on quarterly basis.

3. Segmental Reporting [AS-7]
It is the reporting of the operation segments of a company in the disclosure accompanying financial statements. AS 17 requires to report a segment if it has at least 10% of the revenue, 10% of the profit or loss, or 10% of the combined assets of the company.
 

4. Corporate Governance Report
The SEBI regulates governance practices of companies listed on Stock Exchanges. These regulations are notified under clause 49 of the Listing Agreements of Stock Exchanges. It prescribes the standards to be followed in the governance of the companies.
 

5. Reporting of Information Relating to Group Companies [AS 21]
AS 21 requires companies to prepare consolidated Financial Statements. It is the presentation of subsidiary companies. The objective of consolidation is to show the performance of the group as if it were a single entity. The inter group transactions are eliminated in the consolidated Financial Statements.