Analytical value of frofit and loss reporting

Correct and timely decision-making is the necessary condition to reach success in respect of entrepreneurial activity. In order to make decisions, production managers shall be aware of the information based on real facts, that will be reflected into the financial statements prepared in accordance with International Financial Reporting Standards.
According to the conceptual foundations of International Financial Reporting Standards, the objective of the financial statement is to provide customers with the information regarding the financial condition, outcomes and changes of entrepreneurial activities. The financial statement containing the mentioned information gives possibility to evaluate the activity of the managers of different level with respect of the outcomes of the management of entrusted resources and responsibility.
One of the elements of the full package of financial statement prepared and submitted in accordance with the conceptual foundations of International Financial Reporting Standards is the Statement of Financial Outcomes- “Analytical value of profit and loss reporting”.
The objective of the current Master’s Thesis is to study the principles of preparation and submission “Analytical value of profit and loss reporting”. The requirements of international standards in regard of preparation and submission “Analytical value of profit and loss reporting” are reviewed within the thesis. On the basis of the example of the certain company it is examined to what extent is the financial statement of the mentioned company prepared in accordance with relevant standards.