Which of the Following Statements is True Regarding the Reporting of Financial and Non-Financial Data?

RediksiaMonday, 31 July 2023 | 15:20 GMT+0000
Which of the Following Statements is True Regarding the Reporting of Financial and Non-Financial Data
Which of the Following Statements is True Regarding the Reporting of Financial and Non-Financial Data. Photo: Diksia/Canva

However, non-financial still requires using evidence, data, and indicators to support the information and claims that are made.

For example, the selection of material topics, the measurement of performance indicators, and the verification of data sources are all areas where non-financial may involve objectivity and rigor.

Statement 4: Financial reporting is more standardized than non-financial reporting.

True. is more standardized than non- because there are more established and widely accepted frameworks and principles for financial reporting than for .

For example, GAAP and IFRS are the two dominant accounting standards that are used by most organizations around the world for financial reporting.

These standards provide clear and consistent rules and guidance for preparing and presenting financial statements.

is less standardized because there are more diverse and evolving frameworks and guidelines for non-financial reporting than for financial reporting.

For example, GRI, IIRC, SASB, and TCFD are some of the leading frameworks and guidelines for non-financial reporting, but they are not mandatory or universally adopted by all organizations.

These frameworks and guidelines provide flexible and adaptable recommendations for disclosing non-financial information.

Statement 5: Financial reporting is more frequent than non-financial reporting.

True. Financial reporting is more frequent than non-financial reporting because there are more legal and contractual obligations for financial reporting than for non-financial reporting.

For example, most organizations are required to prepare and publish annual financial statements as part of their statutory or regulatory filings.

Some organizations may also need to prepare and publish quarterly or monthly financial statements as part of their contractual or market requirements.

Non-financial reporting is less frequent because there are fewer legal or contractual obligations for non-financial reporting than for financial reporting.