Benefits & Limitations of Published Accounts
- Created by: revisingluke
- Created on: 24-01-20 08:30
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- Benefits & Limitations of Published Accounts
- Benefits
- Produced annually
- Available for inspection by interested stakeholders when filed with Registrar of Companies
- Accounts of larger companies are audited by external auditors
- Audit report included in published accounts
- Accounting framework ensures that published accounts follow same legal & accounting standards
- Comparable year-on-year & allows comparison with other companies
- Limitations
- Produced annually: fortunes can change significantly in this time
- PLCs file statutory accounts with RoC within 6 months
- Accounts are out-of-date
- Regulatory framework for accounting details requirements for published accounts
- Companies unlikely to disclose additional info
- Report on past events: historical
- No indication of future events
- Money measurement concept
- EG quality of management, motivation of workforce, product life cycles ETC
- means cannot record aspects of company affecting future performance
- Benefits
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