Financial statements to undergo a facelift
Johannesburg, 3 September 2020 - How many times have shareholders and other users of financial statements questioned the quality of financial information that companies provide in financial statements? The manner in which financial information is presented and disclosed could impact how the users of financial statements perceive the content and context provided in those financial statements. Financial statements are an important tool for communicating the financial performance, financial position and cash flows of a company. In addition, financial statements enable users to form an opinion, for example, on the liquidity and solvency of the company. They are also a mechanism which can be used to hold management accountable for the resources entrusted to it by shareholders, writes Bongeka Nodada, SAICA Project Director: Financial Reporting.