Report

Abbott’s investments Ltd. This is a project statement which may identify the objective of financial report. In this discussion the annual report of particular company (Abbott’s Investments Ltd) are described. Basically this is a public listed company. And the company has faced a loss during a financial year. In both sides, rural and industrial way. Objective of financial reporting by Public-Listed Companies. The management of all listed companies registered in UK is bound by law to prepare and provide financial statements for each accounting period. This has been the case since the conception of The Companies Act 1948' (Flint, 1982), last amended in 1984. Although it's been over 55 years of reporting entities preparing financial statements, the objective of these statements has always been a matter of discussion. The Accounting Standards Board (ASB) came up with a precise outline in 1999 which stated "The objective of financial statements is to provide information about the reporting entity's financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity's management and for making economic decisions" (Accounting Standards Board, 1999). Abbott’s investments Ltd is one of the companies which prepare financial statements in the Companies Act 1984'.This essay is an attempt to critically evaluate the financial information provided by Abbott’s to find out if it meets the objectives set by the above statement. In order to achieve that, it's imperative to first understand the meaning of the highlighted components of the statement and have an overview of the company under discussion. I note that paragraph by the company of Abbott’s Investments Ltd the aim of financial reporting to the economic decision-making of the investors and creditors. I agree with the alternative view case that this should be an aim in addition to that of providing a report of the management's Abbott’s of the enterprise and a record of the performance and position for which they are accountable to the owners. I would go further and say that this report should be the primary purpose of general purpose financial statements and this would make a difference to the sorts of requirements that are in the standards.

Therefore I consider that for the financial statements of Abbott’s investor’s needs might be rather different, mainly because the balances between different years are changes as compared to listed companies. But one thing I remember in these objectives that Nonmanagement owners become less important and the needs of lenders and other groups such as trading partners become more relatively more important. Justified Financial Statement. Financial statement showed over all loss of $43 million. That was a very big loss during a year. On other hand company showed that former year I got a profit $268 million which keep a great benefit from the investors, but this loss again badly effected to the management and users (investors).it shown the financial statement as well. Rural and industrial finance last year profit $32 million and $25 million, Over all loss in current year is $311 million. If we justified to $268 million profit to the current year for cover a loss of $ 311 million, so that was not recovered the current rural and industrial loss, bank loans, and doubtful debts. Report criticism and achievements. a) According to report it takes a several years to shown a better result in financial statements. b) As per to objective company must be shown financial statement to his users, that can effect upon its reputed. c) The loss will not bear to the investors, that the company’s shares pull down and its repute will damage. d) In financial statement that financial report and financial position must be mention and the company’s management can’t be hidden the reason of losses. e) It must be prepare a financial statement in companies Act 1984. f) Company can achieved a market to follow the objective if it may apply accordingly.