A financial reporting system refers to an established system of presenting an organization’s financial data, its operating performance and its flow of funds for a given accounting period. This system is guided by a set of accounting standards that dictate how particular transactions are reported in financial statements (Miller and Bahnson, 2002). The major components of financial reporting systems are the balance sheet, income statement, statement of retained earnings and statement of cash flow.
An operation budget is essentially an estimation of operations costs. The management can use this type of budget to measure variances with the actual operation costs ...
