Financial Reporting involves the disclosure of financial information to the various stakeholders about the financial performance and financial position of the organization over a specified period of time. These stakeholders include – investors, creditors, public, debt providers, governments & government agencies.

Financial Reporting is very important and critical task of an organization. It is vital part of Corporate Governance.

The objectives & purposes of financial reporting :–

* Providing information to management of an organization which is used for the purpose of planning, analysis, benchmarking and decision making.

* Providing information to investors, promoters, debt provider and creditors which is used to enable them to male rational and prudent decisions regarding investment, credit etc.

* Providing information to shareholders & public at large in case of listed companies about various aspects of an organization.

* Providing information about the economic resources of an organization, claims to those resources (liabilities & owner’s equity) and how these resources and claims have undergone change over a period of time.

* Providing information as to how an organization is procuring & using various resources.

* Providing information to various stakeholders regarding performance management of an organization as to how diligently & ethically they are discharging their fiduciary duties & responsibilities.

* Providing information to the statutory auditors which in turn facilitates audit.

* Enhancing social welfare by looking into the interest of employees, trade union & Government.

I. Inputs

• Work performance information


• Performance measurements


• Forecasted completion


• Quality control measurements


• Project management plan

                - Performance measurement baseline

• Approved change requests


• Deliverables

II. Tools and Techniques

• Information presentation tools


• Performance information gathering and compilation


• Status review meetings


• Time reporting systems


• Cost reporting systems

III. Outputs

• Performance reports


• Forecasts


• Requested changes


• Recommended corrective actions


• Organizational process assets (updates)

Answer : D

Explanation : Operating concern is the highest reporting level within CO-PA.