Reference no: EM133554164

Case Study: The concepts of a quality characteristic of financial reporting i.e., faithful representation (accounting information is not misleading), an accounting assumption i.e., accrual basis, and management of accounting elements (e.g., expenses and revenue) are critical components of financial reporting in organizations. Accordingly, this assessment requires you to submit a short answer, covering the following sections:

Question 1. Introduction:

Describe the relevance of financial reporting in a health or social care organization in Australia. This includes identifying the purpose of the set of financial statements and notes to the statements usually included in annual financial reporting. Moreover, outline how the purpose of these statements is aligned with the day-to-day activities and strategic direction of a health or social care organization.

Question 2. Quality of financial reporting, Management of expenses and revenue:

2.1 Explain the concepts of faithful representation and accrual basis accounting. Elaborate on how these concepts can be applied to enhance the quality of financial reporting in a health or social organization in Australia.

2.2 Explain ONE major expense and ONE major revenue in a health or social organization in Australia. Provide an example of how movement in this expense and revenue can be influenced by business activities and are recorded in specific financial statements.

2.3 Discuss whether the application of concepts discussed in section 2.1 and management of the expense and revenue discussed in section 2.2 could be any different between public or private health or social organizations in Australia.