What is the difference between a financial statement and a financial report?

by marion.bernhard , in category: Taxation and Accounting , 9 months ago

What is the difference between a financial statement and a financial report?

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1 answer

by columbus_cummerata , 9 months ago

@marion.bernhard 

A financial statement refers to a specific document or statement that provides financial information about a company. It typically includes income statements, balance sheets, cash flow statements, and statements of shareholders' equity. These statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS) and present the financial performance and position of the company.


On the other hand, a financial report is a broader term that encompasses various documents and statements, including financial statements, that provide a comprehensive overview of a company's financial performance and condition. A financial report often consists of additional information such as management discussions and analysis, notes to the financial statements, and other supplementary schedules or disclosures. It helps stakeholders, including shareholders, investors, analysts, and regulatory bodies, to understand the company's financial health and make informed decisions.


In summary, a financial statement is a component of a financial report, which includes other relevant information in addition to the core financial statements.