A balance sheet or statement of financial position, reports on a company’s assets, liabilities, and owners equity at a given point in time.
Professional Financial Statements
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
Balance Sheet
Income Statement
Statement of Equity
A statement of changes in equity or reports on the changes in equity of the company over a stated period.
Cash Flow Statement
The cash flow statement acts as a bridge between the income statement and balance sheet by showing how cash moved in and out of the business.
What is a
Financial Statement
Financial statements are a key tool for running your business. They’re a snapshot of your company’s finances and give crucial information about your business performance. They’re also the foundation for planning your future course.
Financial statements are also used by bankers, investors and others to assess the health and liquidity of your business and make decisions that affect it.
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.
Owners and managers require financial statements to make important business decisions that affect its continued operations.
The Purpose of
Financial Statements
The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.
Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities, equity, income and expenses are directly related to an organization’s financial position.
DID YOU KNOW
Financial statements must be drawn up within six
months of the companys financial year end
As per the Companies Act, 2008 or regulation 28, private or personal liability companies that are required to be audited, must file a copy of the latest approved Audited Financial Statements on the date that they file their annual return with CIPC.