What are the different types of financial statements?


by liam , in category: Taxation and Accounting , a year ago

What are the different types of financial statements?

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1 answer

by josie_rohan , a year ago


The different types of financial statements include:

  1. Income Statement: Also known as the Profit and Loss Statement (P&L), it shows a company's revenues, expenses, and profits over a specific period. It indicates whether a company has made a profit or incurred a loss during that time.
  2. Balance Sheet: This statement provides a snapshot of a company's financial position at a specific point in time, usually the end of a reporting period. It shows a company's assets, liabilities, and shareholders' equity.
  3. Cash Flow Statement: The Cash Flow Statement shows the inflows and outflows of cash from operating, investing, and financing activities during a given period. It provides insights into a company's ability to generate and utilize cash.
  4. Statement of Changes in Shareholders' Equity: This statement details the changes in shareholders' equity over a given period. It includes information about share issuances, repurchases, dividends, and retained earnings.
  5. Statement of Comprehensive Income: This statement reports a company's revenues, expenses, gains, and losses that have not been recognized in the Income Statement. It presents a more comprehensive view of a company's financial performance.
  6. Statement of Retained Earnings: This statement shows the changes in a company's retained earnings over a specific period. It includes net income, dividends, and adjustments affecting retained earnings.
  7. Notes to the Financial Statements: These are additional disclosures that provide further details and explanations related to the information presented in the financial statements. They include significant accounting policies, contingent liabilities, and additional financial information.

It is important to note that the composition and presentation of financial statements may vary depending on the accounting standards followed, such as Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).