Financial reporting issues?

Question

I am faced with a case in my textbook that wants me to discuss the financial reporting issues related to the preparation of financial statements for the period. What are examples of things i shoudl talk about? What are examples of financial reporting issues?
THANKS

Answer 1

You can write about issues in the following areas: fair value, leases and other off-balance-sheet items, stock compensation arrangements, revenue recognition, and accounting for employee benefits,the need for more information about an entity’s risk management, particularly in the area of financial instruments as transactions continue to change and become more complex.

Specific business, industry, or economic trends that might give rise to financial reporting issues - globalization as a trend that may give rise to financial reporting issues both in terms of risks and uncertainties and in the move toward a service-based economy. Rapid changes in technology will severely impact certain industries, causing asset impairment issues.

You might want to read this article.