Financial report discloses financial results as well as other relatable information to external stakeholders such as customers, regulators and investors and at the same time, the company’s management.
The report is focused on the company’s performance for a given period of time.
Essential Financial Reporting
More often than not, financial reports are being issued every 4-months or quarterly basis. Some however, follow an annual financial reporting. The report may include:
Statement of financial position – this is referred to as “Balance Sheet” where it reports the liabilities, assets and equity of the company and owner at a certain time. This is typically made at the end of fiscal quarter or by end of the year.
Income statement – as for this one, it tackles any loss and/or profit that the company has made on a given timeframe. This includes the expenses incurred for a period and sales made.
Statement of retained earnings or changes in equity – such report is centered on the changes of equity of the firm for the year or fiscal quarter.
Cash flow statement – when it comes to this financial report, it is disclosing all cash flow activities such as:
- Operating and;
- Financing Activities
Most of the time, these are being referred to as uses of cash and sources.