Company Coursework Example | Topics and Well Written Essays - 1250 words - 1

Company - Coursework Example The report has also examined little management accounting techniques. Finally, the report has attempted to evaluate some current techniques that are appropriate for strategic management accounting. The report is generally to be used within Spacenet.inc; a well-established ICT firm based in Brussels. The board of associations and the management depend on financial reports to be able to cognize the economic situation of the board and to help the whole team in the process of decision making. For the purposes of improving the usefulness of financial information in the perspective of the decision making process, financial statements should be analyzed (Young, 2003). In that perspective, financial statement analysis can be described as the process where data is converted from financial statements into meaningful information for the organization quality evaluation by use of diverse analytical methods, which is very essential in the entire process of rational management. The function of financial report analysis is to identify good characters of Spacenet.inc so that the management can apply most beneficial characteristics. At the same time such reports also help an organization to recognize its weaknesses and take the necessary actions. A good financial strategy should consider both strength and weaknesses of the company. The use of internal financial statement prepared for top management provides the information they require in monitoring the organization’s operation and aid in decision making. Published reports rely on internal financial reports to inform investors, lenders and suppliers about the firm’s financial position. One limitation of both internal and published financial report in decision making is that the data given is based on the market at that particular time (Young, 2003). Subject to the nature of the market, change may be observed very quickly, so top managers are not supposed to assume that figures as per the last reports will be stagnant