Rapporteurship of financial report

Electiva de la profundización I

Daniel Jose Ballesteros Torres

Cleovis De Jesús Castro Cogollo

Víctor Rafael Diaz Yepes

Luis Daniel Mejía Pérez

Carmen Elena Perez Garcés

Saray De Jesús Puerta Cabarcas

Fundación Universitaria Tecnológico Comfenalco.

Facultad de Ciencias Administrativas, Económicas y Contables

Tecnología en Contabilidad Sistematizada

Semestre V - Sección 1

Cartagena de Indias D.T.C.

Septiembre 16

2020
 Tabla de contenido

1. Mindmap of financial report.....................................................................................................3

2. Rapporteurship of financial report...........................................................................................3

3. Conclusion................................................................................................................................6
 1. Mindmap of financial report

2. Rapporteurship of financial report

The financial report will help us detect the current economic status of a company or

organization for a certain time. In this way, when analysing the current situation, we can

compare it with previous periods and make an adequate report at the time. When preparing a

financial report, we must consider some basic elements for its writing, the objective of the

financial report being the decision-making within the company. From our perspective, the best

way to understand the concept of a financial report is by dividing it into four important points,

which are highlighted on the mind map. Specifying these four points we have that they are the

classification, the content (from a material point of view), the characteristics (of a good financial

report), and examples, to give an idea.

The Financial Report can be classified into internal and external. The internal report is

made for administrative purposes and the administrator is in close contact with the company, has
access to the accounting books and in general all sources of business information are at his

disposal. The results of their work are more satisfactory because the internal analyst is better

informed of the peculiarities and movements of the business.

Meanwhile, internal and external analysis differ from each other in that the former has

access to all the information necessary for the analysis, as it is carried out within the company

itself; while the external analysis is carried out outside the company, either by a credit analyst,

investment advisers, or any interested person. It should be emphasized that in the external report

the analyser has no contact with the company, and the only information it has is that which the

company deems pertinent to provide.

In addition, from a material point of view, the financial report can adopt the following

parts:

Cover: the main external part of the covers is intended for:

 Company name

 Denomination of being a work of interpretation of financial statements or the

corresponding subject.

 The date or period to which the states correspond.

Background: This section is where the analysis work is done, and they are generally

intended for the following:

 Mention and scope of the work carried out.

 Brief history of the company, from its constitution to the date of the report.

 Brief description of the commercial, legal, and financial characteristics of the

company.

 Objectives pursued by the work done.

  Signature of the person in charge.

Financial statements: In this part, the financial statements of the company are

presented, generally in a synthetic and comparative form, ensuring that the terminology is fully

accessible to users of the information.

Graphics: Generally, this report contains a series of graphs that make the concepts and

figures of the content of the financial statements even more accessible; it is up to the analyst to

decide the number of graphs and their shape.

Comments, suggestions, and conclusions: Here the various comments made by the

person responsible for the report are grouped in an orderly, clear, and accessible way; likewise,

the suggestions and conclusions that it deems pertinent to present.

Taking into account the characteristics that a good financial report must have in order to

make an adequate presentation, in such a way that it captures the reader's attention, therefore, the

report requires that it be carried out in the following way; that it is complete, that is, it presents

both favourable and unfavourable data; logically developed, or another way of saying that the

work must be divided into stages, each one allowing the development of the following topics in a

natural and logical way; in the same way, it is clear and precise, the facts must be concisely

established, conclusions and recommendations accessible and fair, the solutions must be viable

for the same problem; in addition to concrete, which means that it should not contain foreign

material to the problem, and that it should refer to specific and determined cases of the business.,

abstractions and generalizations should be avoided; and, finally, timely, that is, the usefulness of

a report depends on the timing with which the results are being provided, therefore the

information must always be timely, since an untimely report causes a false situation of

immediate appraisals that serve as guidance for decision making.

 To finish we have that the most prominent and most used examples of financial reports

today are the one extracted for executive purposes, the management evaluation, the detailed one

for specific purposes, and the financial statements based on parameters.

3. Conclusion

The main importance of financial reports is that it will answer the questions of any

executive interested in the company, some of these people who may be interested are the

following: shareholders, investors, employees, government and the general public. Through this,

the performance of the administration can be evaluated, knowing in turn the results of its

management, paying special attention to accounting information. The results will allow

shareholders to decide whether to sell their shares or buy new shares. Investor advisers will need

to analyse financial information to better serve their clientele. Credit analysts will study the

accounting information of applicants to select who will be awarded credit.