Financial Reporting
The main goal of financial reporting is to provide stakeholders accurate and timely information about a company's financial results and situation. As a master of a business, you understand that success can actually only be a success when indicated by average, comparable and accurate numbers.
Balance sheet
The balance is the details of the company's assets and liabilities made annually.
Income Statement
Details of profits and losses are the data on all expenses and income, throughout the year reflects the company's gross profit and EBDITA.
Cash flow statement
The main goal of CFS is to show stakeholders where the company's money comes from and how management uses it.
Equity shareholders
The declaration of stock is how the equity of a company changes during a reporting period.
What is the purpose of financial reporting?
The goal of financial reporting is to provide transparent, accurate and timely financial information. This provides better understanding and interpretation to other readers to evaluate the results of the company together with the information provided in the statements. They provide a clear, standardized image to parties such as investors, creditors and management, so that they can assess the operation and whether the business is leading in the right direction.
