It can be very helpful to look at a side-by-side comparison of different foods. By seeing both foods compared, you can make wise choices on what you eat. On this page, we compare Flank Steak Versus Chicken to see which food has fewer calories, less fat, more protein, and more fiber.
A: Financial reporting is important because it helps to ensure that companies and organizations comply with relevant regulations and, if it is a public company, shows investors the current financial health of a company. Investors use need this data to make investment decisions, voice concerns and vote on issues at shareholder meetings.
In other words, all important financial information that would sway the opinion of a financial statement user should be included in the financial statements. The concept of materiality is relative in size and importance. Some financial information might be material to one company but might be immaterial to another.