Monday, 14 July 2014

An Introduction to Financial Reports

A financial report is a formal record of a company by using financial data. It is important and accurate because it consists only figures which is more objective than the announcement or statement consists of words.

There are two types of financial report: 
  1) Interim Financial Report : Normally published quarterly or semiannual. Usually unaudited and prepared in condensed form.
  2) Annual Financial Report : Financial Report prepared for a period of one year. Required to be audited by an auditor from outside firms.

A financial report can be divided into two parts:

A) 4 main accounts are:
1) Balance sheets
2) Income statements
3) Statement of change of equity
4) Statement of cash flows

B) Financial notes present more detailed disclosures about the above 4 main accounts.

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