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We've decided to make a big change in our blogging! We will be adding educational video content too!

Structure:

  • We will be providing explanatory videos explaining a specific concept examinable by CIMA (based on your suggestions - btw - if you have any suggestion for the future videos, do share them in the comments section - we're here to help you improve your knowledge).
  • Below the videos, you can find a transcription of each video. 

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As businesses grew, there came a divorce between ownership and management of business. Often the owners of a business, that is the shareholders, appointed professionals to handle the day to day running of the business, that is the “management”, give rising to an “Agency” relationship. The shareholders appoint agents, that is the management team, to run their business. The shareholders require frequent reports on how their business is performing. To have objective and useful reports regarding the efforts of management and its results, financial reporting was devised.

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I guess you may be wondering - why are you writing such an article at the end of January? Fair question. Statistics show that many people come up with the New Year’s resolutions and by the 3rd week of January, most of them are already forgotten. So I think this is a perfect time for this article. 

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