Presents changes in equity during the reporting period. Financial statements are records that show the detail of an entity’s financial info including liabilities, assets, income, equity, expenses, cash flow, and shareholders’ contribution among other related information. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. The 3 financial statements are all linked and dependent on each other. Different Types of Financial Statements Interim Statements. The four basic financial statements may be accompanied by extensive disclosures that provide additional information about certain topics, as defined by the relevant accounting framework (such as generally accepted accounting principles). This is usually considered the most important of the financial statements, since it presents the operating results of an entity. The statement of cash flows takes aspects of the income statement and balance sheet. The main objective of financial reporting is to provide useful information for decision making. Well, that’s what financial statements do. 4. GAAP requires the following four financial statements: Balance Sheet - statement of financial position at a given point in time. Presents the cash inflows and outflows that occurred during the reporting period. ‘Annual Report and Financial Statements’ is abbreviated to ‘AR&FS’ in the descriptions below. Thus, the information presented is as of a specific point in time. Financial statements provide a picture of the performance, financial position , and cash flows of a business. They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders’ equity. This report is one of the most common reports, because everyone wants to know if they are making any money. The statements we have discussed are essential elements of a business plan. Financial highlights PDF / 91 KB . Financial statements are summative reports in that they report information obtained from the day-to-day bookkeeping activities of financial accountants or bookkeepers. They tell you where your money is going, where it’s coming from, and how much you’ve got to work with. Income Statement. Your essential guides to financial statements . Income Statement Statement of Retained Earnings Balance Sheet Cash flow Statement Consolidated statement of cash flows PDF / 88 KB . Businesses consist of a number of stakeholders that have different levels of power and interest in the organisation. Balance sheet. The four basic financial statements are the income statement, balance sheet, statement of cash flows, and statement of retained earnings. At the same time, those rules are not so rigid as to preclude variations in the exact structure or layout. 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