Discuss about the Accounting Theory for Calcify and Interpreted.
Accounting is an organized set of computerized and manual accounting procedures, methods and control established to record, gathered, analyze, calcify, interpreted, summarize and represent effective and correct financial information and data for both management as well as stakeholders. Accounting the vital procedures that helps the organization to build its reputation and increase better performance ineffective and successful manner (Godfrey et al., 2010). The IASB develops the IFRS s with purpose of accomplishing comparable financial statement and report all over the world. Within the organization, study of the accounting theory procedures involves a assessment of both the historical foundations of accounting procedures and practices and the methods in which practices associated with accounting is changed and put into the regulatory framework that manages financial reporting and financial statement. Therefore the present report is discussed about the assessment of the materiality issues within the organization and stakeholder analysis of the company. The report also focused on the assessment of telnet’s financial report 2011. At last the report represents the recommendation that helps the company to enhance profits in vital manner.
Sustainability is the vital objective of any organization and this can be efffecvely obtained by the management through solving material issues. As stated by the Whittington, (2007)..materiality issues is the most common legal term can have distinguish thinking and meaning depend upon the situation. As per the international Accounting Standards Boards materiality is an entity aspect of significance based upon the magnitude or nature both of the items to which data and information associates in regards of a person entity’s financial report. In other manner materiality is about the making judgments based on the vital or significant of several of issues that might be considered for enclosure in the financial reporting of the companies both as per their magnitude and nature (Vorhies, 2005).
As per the company i.e. Telenet annual report 2011, It has been seen that organization effectively focused on the materiality issues in order to attack and achieve better stockholder satisfaction. As per the evaluation and findings it has been seen that the main materiality issues associated with the company are customers satisfaction, attractive and retaining talent, product use issues, security and protection of minors, privacy, Access to information communication techniques, reliability of organization services, freedom of expression and work or life balance.
The main stakeholders of the company are board of the directors, employees, workers, managers and customers. The main roles and responsibilities of telnet manager is to provide clear direction to its lower level regarding delivering the job within the time limit and what the management wants from them. Employees are the lower level of stakeholders which main roles and reponsiblteis associated with the employees is to complete the management set of objective within the time limit (telenet, 2017). Among the stakeholders the key stakeholders of the company is board of the directors, management and employees.
The company financial report it has been identified that the work life balance also one of the vital materiality issues of the company. As per the evaluation and analysis it has been seen that the other materiality issues which the company not includes are the health and wellbeing of employees and cultural and social impact(telenet, 2017). Health and wellbeing of the workers is most vital because if the organization not focused on them then they not be able to execute its business operation in most vital and effective manner.
Focusing on the company financial information on the materiality issues mainly to stakeholders, organization has not establish targets or Key performance indicators for each material problems. Moreover from the evaluation it has been seen that the company materiality issues not discus about the governance and compliance. In present the organization mainly focused on the economic performance, environmental, social performance.
The main key results at the material review are following;
As per the company financial report it has been seen the company main objective and purpose is to focus on the stakeholders satisfaction .Moreover the company objective are to improve better client satisfaction, high profits and expend the market both international and national level. Therefore set of the objective which is established by the organization effectively solved if the company manage materiality issues in most vital and effective manner. The company also focused on the enhancement of customer’s satisfaction level and customers services.
Integrated report is the succinct communication regarding how the company’s strategy, performance, governance and prospects in regards to its external environment guide to the creation of the values over medium, short and long term. In other manner, it is the corporate communication procedures that outcomes in communication most effectively and visibly a certain time of period known as integrated report. As stated by the Eccles& Krzus,. (2010).integrated reports means integrated presentation of the organization’s performance in regards of both values relevant information and financial information. The main objective of the integrated reporting is to improve quality of data and information available to suppliers of financial capital to ensure most productive and efficient allocation of capital. Enhancement of the accountability, social relationship and promoting understanding of organization independencies are the main objective of integrated report.
The following principle and guiding principles underpin the preparation of an integrated report are;
Strategic focused and future orientation: – It is mainly focused upon the company’s strategy and how it associates to the company’s capacity to make values in the short, long as well as medium report and it utilizes of and impacts on the organization wealth. It provides the presentation and selection of other content and it contains the opportunities, significant risks, dependencies travelling from the business model and company’s market position.
Connectively of information:- As stated by the Gilman& Schulschenk, (2013)Representation of the integrated report includes a holistic picture of the interrelatedness, combination and dependencies between the factors that impact the company’s capability to build values over certain time.
Stakeholder relationship: – Integrated report needs to provide the information such as stakeholder’s relationship as well as quality and nature of the relationships with key stakeholders such as employer, employees etc (Mio, 2016). This guidance represents that effectiveness of the relationship with the key stakeholders of the company. Moreover this also includes the manage risks, determination of the material mater such as opportunities and risk.
Materiality: – An integrated report must represent the information regarding that substantively impact the company’s ability to build values over medium, short and long term.
Consciences: An integrated repots must be concise.
Completeness and reliability: – Integrated report should contain all the material matters including both negative and positive in balance manner and with not material error.
Comparability and consistency: – The information or data disclose in the integrated report should be displayed on the basis of reliable over time and in such manner that enables comparison with other companies to the intent. In simple manner it has been said that it is measured the company capability to build values over certain time period.
As per the evaluation and analysis of the company Telenet report it has been seen that company effectively focused on the strategy and future orientation. As per the findings it has been seen that company strategy focused is to improve high client’s satisfaction and increase number of the clients during some years. According to the company report, it has been seen that company fused on improvement of the connection i.e. future to 3.5 devices per individuals in 2015 and even above than the 6 device per person in 2010. Thus this information effectively reflects that company follow integrated first rules i.e. strategy focus and future orientation in better manner. As per the company report it has been seen that company prime objective is to measure stakeholder awareness to gain so that this shows that the organization effectively focused on the stakeholder’s commutation. The organization not effectively shows that connectively of the infoamriton because in financial repot they not mentioned about the non financial performance as well as data effectively (Culpan& Trussel, 2005). In order to build better stakeholders confident and achieve high customer’s satisfaction organization represents materiality matrix that discuss all the materiality issues company faced. The company Telnet effectively shows that relevant issues through materiality matrix such as customer’s satisfaction, Access to ICT, privacy and security, product use issues etc. As per the evaluation and findings it has been seen that there 15 issues that the company recognized in its materiality matrix. So, that it has been said that in integrated report the organization effectively represent the materiality issues in vital manner. The company financial report is consciences i.e. the information and data the company represent is effective and relent. The company represents the data and infoamriton in reliable comparability and constancy manner that shows in below figure.
Stakeholder theories: – Stakeholder theory is the conceptual framework of organization management and business ethics which address ethical and moral values in the management of an organization. The theory was first introduced by the outlines and R.Edward and outlines how management of the company fulfills the stakeholder’s interests in the organization (Culpan& Trussel, 2005).
Institutional theory: – Institutional theory based on the more resilient and deeper aspect of the social structure. This procedure is considered by which scheme, structure, rules, routines and regulations become established as trustworthy guidance for social behavior.
Legitimacy theory:- As stated by the Whittington, (2007), legitimacy is generalized opinion or perception that the action of entirety are attractive, appropriate and proper within some socially constructed system of values, norms as well as beliefs. In general manner it is said that this theory is posits that organizations are bound by the social contract in which the business is effectively agree to execute several socially wished action in return of approval of the company’s objectives and other reward.
As per the company financial report is seen that the company effectively focused on the enhancement of both customers as well as employee’s performance. In the year of 2012 the organization launched the candidate centricity project that is emphasized on the client during the several application stages. In addition to this to achieve high employee’s satisfactions the management introduce refer a friend program that helps the organization to improve in employee’s motivation in effective and successful manner. In addition to this telenet objective is to attack customers from diverse backgrounds. The company also implements the internal rotation system that helps the organization to achieve better satisfaction. Therefore, from the evaluation and analysis it has been said that the organization effectively maintain the institutional theory, stakeholder theory as well as legitimacy theories.
Capital market is market for safety or security where business government and enterprise can increase long term funds. As stated by the (Godfrey et al., 2010) it is the market in which cash or money is given for certain time of periods longer than time as the increasing of the short term money takes place on the different market. Capital market plays a vital role in national economy. A dynamic, developed and vibrant capital market can add significantly in the prompt economy development and growth. Moreover, capital market aids in the procedures in capital formation. Capital market aids and improves productivity and production in the national economy. As capital market helps the organization to make finance for long period of time, so that the management of the oratgnizaiton effectively met the organization needs by capital market.
Therefore the main objective of the company telenet is to represent its corporate report more simple and cover all facts and figures that not only helps the stakeholders to determine the company status but also helps to increase better customer’s satisfaction.Moreover, the organization needs to build its corporate report in conscious manner that would effectively helps the users to understand the company present scenario. Apart from that the company needs to implement capital market research on the both non accounting and accounting information that would effectively satisfy the customers in vital manner. Use of the above strategy within the corporate report helps the organization to achieve its set of objective in most vital and effective manner.
Conclusion and Recommendation
As per the above discussion and analysis it has been seen that company annual report plays the vital factors and helps the company to increase brand image in most effective manner. The report shows that the company effectively achieves better stakeholder satisfaction through its annual report because if the data and infoamriton represents simple manner then they invest more money in organization. As per the findings it has been recommend that organization needs to implement all the rules and regulation of IIRC 7 principle guidance that helps the company to achieve its set of objective in vital and successful manner.
telenet. (2017). telenet. [online] Available at: https://investors.telenet.be/phoenix.zhtml?c=241896&p=irol-agm [Accessed 1 Apr. 2017].
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