File Name: balance sheet income statement and cash flow statement .zip
Financial statements or financial reports are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.
They typically include four basic financial statements accompanied by a management discussion and analysis : . Notably, a balance sheet represents a single point in time , where the income statement, the statement of changes in equity, and the cash flow statement each represent activities over a stated period. For large corporations, these statements may be complex and may include an extensive set of footnotes 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. Reported assets, liabilities, equity, income and expenses are directly related to an organization's financial position.
Financial statements are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently.
Consolidated financial statements are defined as "Financial statements of a group in which the assets , liabilities , equity , income , expenses and cash flows of the parent company and its subsidiaries are presented as those of a single economic entity ", according to International Accounting Standard 27 "Consolidated and separate financial statements", and International Financial Reporting Standard 10 "Consolidated financial statements". The rules for the recording, measurement and presentation of government financial statements may be different from those required for business and even for non-profit organizations.
They may use either of two accounting methods : accrual accounting , or cost accounting, or a combination of the two OCBOA. A complete set of chart of accounts is also used that is substantially different from the chart of a profit-oriented business. Personal financial statements may be required from persons applying for a personal loan or financial aid.
Typically, a personal financial statement consists of a single form for reporting personally held assets and liabilities debts , or personal sources of income and expenses, or both.
The form to be filled out is determined by the organization supplying the loan or aid. Although laws differ from country to country, an audit of the financial statements of a public company is usually required for investment, financing, and tax purposes. These are usually performed by independent accountants or auditing firms.
Results of the audit are summarized in an audit report that either provide an unqualified opinion on the financial statements or qualifications as to its fairness and accuracy.
The audit opinion on the financial statements is usually included in the annual report. There has been much legal debate over who an auditor is liable to. Since audit reports tend to be addressed to the current shareholders, it is commonly thought that they owe a legal duty of care to them. But this may not be the case as determined by common law precedent.
In Canada, auditors are liable only to investors using a prospectus to buy shares in the primary market. In the United Kingdom , they have been held liable to potential investors when the auditor was aware of the potential investor and how they would use the information in the financial statements.
Nowadays auditors tend to include in their report liability restricting language, discouraging anyone other than the addressees of their report from relying on it. Liability is an important issue: in the UK, for example, auditors have unlimited liability. In the United States , especially in the post- Enron era there has been substantial concern about the accuracy of financial statements. Corporate officers—the chief executive officer CEO and chief financial officer CFO —are personally responsible for fair financial reporting that provides an accurate sense of the organization to those reading the report.
Different countries have developed their own accounting principles over time, making international comparisons of companies difficult. To ensure uniformity and comparability between financial statements prepared by different companies, a set of guidelines and rules are used.
Commonly referred to as Generally Accepted Accounting Principles GAAP , these set of guidelines provide the basis in the preparation of financial statements, although many companies voluntarily disclose information beyond the scope of such requirements. To entice new investors, public companies assemble their financial statements on fine paper with pleasing graphics and photos in an annual report to shareholders , attempting to capture the excitement and culture of the organization in a "marketing brochure " of sorts.
Usually the company's chief executive will write a letter to shareholders, describing management's performance and the company's financial highlights. In the United States, prior to the advent of the internet, the annual report was considered the most effective way for corporations to communicate with individual shareholders.
Blue chip companies went to great expense to produce and mail out attractive annual reports to every shareholder. The annual report was often prepared in the style of a coffee table book. Additional information added to the end of financial statements that help explain specific items in the statements as well as provide a more comprehensive assessment of a company's financial condition are known as notes or "notes to financial statements". Notes to financial statements can include information on debt , accounts , contingent liabilities , on going concern criteria, or on contextual information explaining the financial numbers e.
The notes clarify individual statement line-items. Notes are also used to explain the accounting methods used to prepare the statements and they support valuations for how particular accounts have been computed. As an example: If a company lists a loss on a fixed asset impairment line in their income statement, the notes may state the reason for the impairment by describing how the asset became impaired.
In consolidated financial statements , all subsidiaries are listed as well as the amount of ownership controlling interest that the parent company has in the subsidiaries. Any items within the financial statements that are valuated by estimation are part of the notes if a substantial difference exists between the amount of the estimate previously reported and the actual result.
Full disclosure of the effects of the differences between the estimate and actual results should be included. The section contains a description of the year gone by and some of the key factors that influenced the business of the company in that year, as well as a fair and unbiased overview of the company's past, present, and future.
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. These types of electronic financial statements have their drawbacks in that it still takes a human to read the information in order to reuse the information contained in a financial statement. More recently a market driven global standard, XBRL Extensible Business Reporting Language , which can be used for creating financial statements in a structured and computer readable format, has become more popular as a format for creating financial statements.
Many regulators around the world such as the U. Many regulators use such messages to collect financial and economic information.
From Wikipedia, the free encyclopedia. Key concepts. Selected accounts. Accounting standards. Financial statements. Financial Internal Firms Report. People and organizations. Accountants Accounting organizations Luca Pacioli.
Main article: Consolidated financial statement. See also: Fund accounting. Accessed 24 June Retrieved Retrieved on April 20, Archived from the original on Categories : Financial statements.
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A cash flow statement is one of the most important financial statements for a project or business. The statement can be as simple as a one page analysis or may involve several schedules that feed information into a central statement. A cash flow statement is a listing of the flows of cash into and out of the business or project. Think of it as your checking account at the bank. Deposits are the cash inflow and withdrawals checks are the cash outflows. The balance in your checking account is your net cash flow at a specific point in time.
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation. The presentation of the direct method for reporting net cash flow from operating activities:. Financial Reporting and Analysis 2 Reading
The Cash Flow Statement portrays how a company has spent its cash. It is often used in tandem with the other two key reports — the Profit and Loss and the Balance Sheet. Why Cash Flow Statement is Important? The cash flow report is important because it informs the reader of the business cash position. For a business to be successful, it must have sufficient cash at all times. It needs cash to pay its expenses, to pay bank loans, to pay taxes and to purchase new assets. A cash flow report determines whether a business has enough cash to do exactly this.
Posted In: Business Planning. The balance sheet and income statement are both important documents to business owners everywhere. When a company has a strong income statement it will usually have a good balance sheet, but it is possible for one of them to be weak while the other is strong. You may now be asking yourself what makes this happen—what makes them different?
Rieter maintains a regular and transparent communication with its shareholders, investors and other stakeholders. Here you will find the latest media releases issued by the Rieter Group. The media kit and photos are available for journalists to download. Rieter offers a wide variety of attractive positions in a multicultural work environment around the world. They are available as Excel and PDF files.
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