Financial Accounting, Reporting and Analysis Practices of NGO'S
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Financial report is one of the best sources of accounting information about an organization. Financial reporting is an essential part of disclosure and helps donors to discover various opportunities. As it is illustrated by Borthick and Clark (1990), accounting exists because it satisfies a need - primarily a need for information. In order to be relevant, accounting data must among others, be quick to respond to users' (particularly the investors) needs. Financial report is one of the best sources of accounting information about a company. Financial reporting is an essential part of disclosure...
Financial report is one of the best sources of accounting information about an organization. Financial reporting is an essential part of disclosure and helps donors to discover various opportunities. As it is illustrated by Borthick and Clark (1990), accounting exists because it satisfies a need - primarily a need for information. In order to be relevant, accounting data must among others, be quick to respond to users' (particularly the investors) needs. Financial report is one of the best sources of accounting information about a company. Financial reporting is an essential part of disclosure and helps investor to discover investment opportunities. However, for financial reporting to be effective, among other requirements, it is relevant, complete and reliable. These qualitative characteristics require that the information must not be unfair nor has predisposition of favoring one party over the others. Although Non-governmental organizations lack pressure from shareholders to show the value created by the organization there is a pressure to show how well they perform that derives from a wide range of stakeholders.
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