ACCA Applied Knowledge · Business and Technology · Financial information provided by business
Which of the following is a feature of financial information that is mainly produced for internal management rather than for external users?
Internal management information is prepared in whatever format, detail and frequency managers need for decisions. Unlike statutory financial statements, it need not follow IFRS Accounting Standards and is not normally filed publicly with a regulator.
- AIt is prepared in a format and frequency decided by management to suit decisionsCorrect
- BIt must follow IFRS Accounting Standards in all cases
- CIt is normally filed publicly with a regulator
Explanation
Management information is flexible: format, detail and timing are set by management needs. IFRS compliance and public filing apply to statutory financial statements for external users.
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