- 3 Marks
Question
Businesses are increasingly accepting that they are not only accountable to investors and lenders, but also accountable to a much wider group of people or stakeholders to which non-financial information is useful in understanding and taking informed decisions on financial statements of the entities.
Required:
State THREE of such useful non-financial information. (3 Marks)
Answer
Three types of useful non-financial information include:
- Description of Business Objectives and Strategies: This includes the company’s vision, mission, strategic goals, and approach to achieving them. It helps stakeholders understand the long-term direction of the company.
- Narrative Review of Business Performance: An analysis of operational results and trends, providing insight into the company’s performance beyond financial metrics, such as operational milestones or market share growth.
- Risks and Uncertainties Management: Information on major risks faced by the entity, such as economic, environmental, or market risks, and how the company manages these uncertaintiess answer follows the required format, ensuring clarity for stakeholders on non-financial factors. Let me know if further assistance is needed!
- Uploader: Kofi