A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants.
For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis:
- Statement of financial position: also referred to as a balance sheet, reports on a company's assets, liabilities, and ownership equity at a given point in time.
- Statement of comprehensive income: also referred to as a profit and loss statement (or a "P&L"), reports on a company's income, expenses, and profits over a period of time. A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the processing state.
- Statement of changes in equity: explains the changes of the company's equity throughout the reporting period
- Statement of cash flows: reports on a company's cash flow activities, particularly its operating, investing and financing activities.
For large corporations, these statements are often complex and may include an extensive set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.
Read more about Financial Statements: Purpose of Financial Statements By Business Entities, Government Financial Statements, Financial Statements of Not-for-profit Organizations, Personal Financial Statements, Audit and Legal Implications, Standards and Regulations, Inclusion in Annual Reports, Moving To Electronic Financial Statements
Other articles related to "financial statements, financial, statements":
... Framework for the preparation and presentation of financial statements Concepts of Capital and Capital Maintenance A major difference between US GAAP and IFRS is ... and capital maintenance during low inflation and deflation, namely, financial capital maintenance in units of constant purchasing power as authorized in IFRS in the Framework, Par 104 (a) in 1989 ... Concepts of capital Par 102 A financial concept of capital is adopted by most entities in preparing their financial statements ...
... Standards and Procedures full-text November 1972 In effect 2 Reports on Audited Financial Statements full-text October 1974 Superseded by SAS 3 ... The Effects of EDP on the Auditor’s. 36 Review of Interim Financial Information full-text June 1991 Superseded by SAS 67 ... The Confirmation Process full-text November 1991 In effect 68 Compliance Auditing ... full-text September 1995 In effect 77 Amendments to Statements on Auditing Standards No ...
... Financial statements have been created on paper for hundreds of years ... The growth of the Web has seen more and more financial statements created in an electronic form which is exchangeable over the Web ... Common forms of electronic financial statements are PDF and HTML ...
... Award Foundation did experience a brief period of financial uncertainty ... In a GAO audit of the Congressional Award Foundation’s 2005 and 2006 financial statements, the office identified two significant matters related to the Foundation’s financial statements ... Revenue Service (IRS) and the audited financial statements for fiscal year 2005 ...
... means that same accounting principles should be used for preparing financial statements for different periods ... If different accounting procedures and processes are used for preparing financial statements of different years then the results will not be comparable because these will ... a scope for improvement but the changes should be notified in the statements ...
Famous quotes containing the words statements and/or financial:
“Nonwhite and working-class women, if they are ever to identify with the organized womens movement, must see their own diverse experiences reflected in the practice and policy statements of these predominantly white middle-class groups.”
—Kimberly Crenshaw (b. 1959)
“Creditor. One of a tribe of savages dwelling beyond the Financial Straits and dreaded for their desolating incursions.”
—Ambrose Bierce (18421914)