4-5 page memo

User Generated

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Business Finance

Description

You were recently hired as management director of the new I Can Business Incorporated (ICBI). You have been asked to establish policies and systems for the business. The first one you choose to work on is a financial reporting system.

For this assignment, you must develop a 4-5 page memo that you will deliver to the board of directors of ICBI. You will describe what a financial reporting system is and explain how management of ICBI should use an activity based budget instead of an operating budget. Be sure to explain the similarities and the differences of the two. Finally, give examples of budget guidelines for ICBI. You must answer the following questions:

  • Describe the meaning and the components of a financial reporting system.
  • Explain the budget cycle and process.
  • Write a description of how management should use an activity based budget instead of an operating budget
    • Explain the similarities and differences of the two budgets
  • Give an example of budget guidelines that ICBI should follow in order to successfully plan.
    • Identify and describe at least 5 basic budget guidelines.

Remember to use the library or other credible resources to support your argument. Be sure to cite your sources using the correct standard of APA.

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Explanation & Answer

Here you go buddy.

Financial Reporting outline
I.

Overview

II.

Meaning and Components

III.

Budget Cycle and Process

IV.

Using Activity Based Budgeting

V.

Budget Guidelines

VI.

References


Running head: FINANCIAL REPORTING

1

Financial Reporting
Student’s Name
Institutional Affiliation
Date

FINANCIAL REPORTING
TO: The Board of Directors ICBI
FROM: Managing Director
REF: A Financial Reporting System
Overview
As a business or other entity that deals with finances, it is imperative to be conversant
with the appropriate ways of handling finances as well as the essential components of a
budgetary process and the proper guidelines. In such a case, it becomes easier for an individual
or management to run the organization as deserved while avoiding fiscal issues or overheads that
the available finances cannot meet. To the board of the directors, ICBI, the following is a
comprehensive coverage regarding the crucial inclusions and procedures of a financial reporting
system, which is not only useful in the budgeting process but during planning and progress too.
Meaning and Components
In every organization, financial reporting encompasses disclosing the company’s
information to the management regarding its performance over a particular period. However, and
in concurrence with Gibson (2012), if a company is publicly traded, it requires the disclosure of
its financial position not only to the management but to the public too. In a way to avoid possible
confusion, it is important to take into account that this procedure is very different from
management reporting. Unlike management reporting where those within the company have a
right to access financial information, financial reporting ensures access to the information to the
insiders and outsiders as long as they have a link with the company.

2

FINANCIAL REPO...


Anonymous
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