Financial Reporting Assignment Example | Topics and Well Written Essays - 750 words

Financial Reporting - Assignment Example The strengths can also be analyzed by how well it is achieving its objectives or targets. However such comparisons have their drawbacks. Comparing Essex with other fire services is not a good indicator given the different circumstances and environments both fire services are operating. Operators received significant savings as projections. The fighters pension scheme also had significant results since the difference between the actual and estimate is +7,000,000.Generally the net operating expenditure did not suppress the estimates. We could also indicate the fact that the trading activities had their objectives clearly spelt. One of the objectives was to achieve an operating surplus to fund appropriations direct to service budgets to re-invest in new and, replacement equipment for the treading account or to provide an additional source of income to the service where possible. One of the major weaknesses of the budgetary process in Essex fire service is that reviewing programmes after estimates have been indicated in the budget means that the budget might not reflect the actual management plans. It is also at concern that the intended management structure is not consistent with the estimates set out in according to best value accounting code of practice. The estimates have been apportioned to enable the set up. Total operating income of 205 against projections of 965 is a case of considerable concern. ... One of the objectives was to achieve an operating surplus to fund appropriations direct to service budgets to re-invest in new and, replacement equipment for the treading account or to provide an additional source of income to the service where possible. Weaknesses One of the major weaknesses of the budgetary process in Essex fire service is that reviewing programmes after estimates have been indicated in the budget means that the budget might not reflect the actual management plans. It is also at concern that the intended management structure is not consistent with the estimates set out in according to best value accounting code of practice. The estimates have been apportioned to enable the set up. Total operating income of 205 against projections of 965 is a case of considerable concern. Such a discrepancy can affect the objectives of the budget drastically. Such an event is of considerable importance because it is a cash inflow. One of the objectives of engineering services is to get an operating surplus. Such an objective is not consistent with the broad objectives of the public sector services. By ensuring that ICTU courses are in line with Essex counting fire and rescue service policy and practice means that the company is reacting instead of being proactive. Its practices could be better suited than those of the policy. By setting estimates the Essex fire services might be restricting itself only to the projections and may fail to take advantage of existing solutions or the ground of the actual time. In as much as budget is a pointer of intentions for the year, it is bound to strengths and weaknesses. Budgets are just an indicator and room for adjustments should be made. Budgets only provide a framework and should not be relied on