A new world of financial reporting: General purpose financial statements repurposed

AS business practices evolve and transactions become

- nancial reporting continuously changes to address the increasing needs of the business community. Both the international and locontinue to transform to include, in addition to the fair representation of past events, a high-level depiction of risk management practices and business strategies.

In welcoming 2018, the genwill be repurposed to enhance predictive value and usefulness to various stakeholders. In achieving so, the International Accounting Standards Board introduced two major standards, namely the International Financial Reporting Standards (IFRS) 9, Financial Instruments, and IFRS 15, Revenue from Contracts with Customers, which has veered away from the usual historical cost accounting, requiring the development of business and loss models, the exercise of professional judgment, and new standards will change how internal and external stakeholders will view the preparation and statements. For internal stakeholders, the requires enhanced interaction and coordination among those charged with governance, senior executives, those involved in line operations, and those involved in staff functions. It requires that management decisions and business strategies are well rounded and communicated to the entire reports in this modern environment will include expectations of the future, resulting from current decisions. - nancial reports where credit - nancial reporting through IFRS 9 based on the probability the loss event will happen.

Furthermore, the new world IFRS 15 requires a more detailed analysis of contracts with customers, with respect to performance obligations, duration, pricing, and other relevant terms. Such analysis is required because of the recognition of assets and liabilities arising from contracts with customers supplemented with more detailed disclosures on how current contracts will impact future operations. Corollary to these changes, the

- work also allows recognition of gains arising from good business decisions that are dependent on highly probable satisfaction of conditions. Thus, various stakefrom top to bottom, should coordinate properly to secure, to the extent possible, good expectations of the future arising from current business decisions, which

Similar to the impact on internal stakeholders, the new world of financial reporting requires external stakeholders to exercise critical thinking in reviewing the value has been enhanced, too, as expectations of the future have been incorporated in the general

- ternal stakeholders will not only see the results of past decisions, current decisions will impact pertaining to credit losses and contracts with customers. Thus, the business decisions of external stakeholders, as a result of the enhanced requirements of the new more informed of their future risks and returns.

Moreover, the extensive use of professional judgment in applying new standards also provides external stakeholders with highlevel information about how corporate governance works, how management thinks, how risks are managed, and how the companies operate. Such judgment reveals how aggressive or conservative management is with respect to their operational, market, and credit risk and, also, how management contracts with their customers. Thus, the genhave been repurposed to be more useful in making business deci

- ing future expectations. The new world of financial