Financial reporting system is any system that compiles financial data and presents it to management in a meaningful format. There are different types of such systems, depending on the system's purpose. So a company can have a one system to assist with financial accounting, and another that delivers managerial accounting outputs. A system that delivers financial statements needs to use generally accepted accounting principles (GAAP), so there is little choice with respect to formatting, only the rules that the company choses to adhere to.

With managerial accounting, however, there are a number of different systems that can be used. This is where the design of the reporting system comes into play, because the design of the system is what ensures that management will receive from the system the information that it needs. Each systems contains different components, including methods of reporting, different measures that are used, and methods of presentation....
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