The financial report is a report that contains information that enables users of financial statements to determine the condition of the company at a particular time or period timely reporting in decision making, information obtained depends on the level of disclosure of financial statements in question.
Statement of Financial Accounting Standards :
The financial statements should present fairly the financial position, financial performance, changes in equity and cash flows by applying SFAS correctly with GAAP required disclosures in the Notes to Financial Statements. Other information remains disclosed to produce a reasonable presentation although such disclosure is not required by SFAS
In practice known some kind of financial statements such as:
a. The income statement (income statement) is a financial report that describes the results of operations of the company in a given period. In the income statement is illustrated by the amount of income and sources of income earned.
b. Statement of changes in capital is a report containing the number and types of capital owned at this time. The report also describes changes in capital and the causes of changes in capital in the company.
c. The balance sheet is a report that shows the financial position of the company on a certain date.
d. Cash flow statement is a report that shows all the aspects related to the activities of the company, either directly or which does not affect directly on cash.
e. Notes to the financial statements are statements that provide information when there are financial statements that require a specific explanation. Notes to the financial statements disclose: 1) Information about the basis of preparation of financial statements and the accounting policies selected
2) The information required under SFAS but not presented in the balance sheet, income statement, cash flow statement and statement of changes in equity
3) Additional information that is not presented in the financial statements but is necessary in order to fair presentation disclosure of contingent eg, commitments and other disclosures.
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