Bank Exams Questions

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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.

The average Life span of RBC is 120 days.

Article-20 of the Constitutiongrants protection against arbitrary and excessive punishment to an accused person. It contains three provisions in that direction No Ex-post-facto Law No person shall be convicted of any offence except for violation of a law in force at the time of the commission of the Act nor subjected to a penalty greater than that prescribed by the law in force at the time ofthe commission of the Act.No Double Jeopardy No person shall be prosecuted and punished for the same offence more than once.No Self-incrimination No person accused of any offence shall be compelled to be a witness against himself.As per the Constitution, a person/entity can be tried retrospectively in certain instances as provided by the law