Financial Statement

A Financial Statement is a formal financial report of financial activities for a legal entity.

• AKA: Financial Report.
• Context:
  • It can (typically) be based on General Journals and General Ledgers.
  • It can (typically) be produced by a Financial Statement Production Task.
  • It can range from being a For-Profit Financial Statement to being a Not-For-Profit Financial Statement (such as a governmental financial statement).
  • It can be audited by a Financial Audit.
  • …
• Example(s):
  • A Balance Sheet Statement that provides a snapshot of a company's financial position at a specific point in time.
  • An Income Statement that details the revenues and expenses over a reporting period.
  • A Cash Flow Statement that shows the inflows and outflows of cash within a business.
  • …
• Counter-Example(s):
  • a Financial Audit Opinion.
• See: Financing, Corporate Financial Model, Liability (Financial Accounting), Equity (Finance), Income Statement, Income, Expense, Profit (Accounting), Investing.

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References

2015

• (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/financial_statement Retrieved:2015-7-13.
  • A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity.

    Relevant financial information is presented in a structured manner and in a form easy to understand. They typically include basic financial statements, accompanied by a management discussion and analysis:

    1. A balance sheet, also referred to as a statement of financial position, reports on a company's assets, liabilities, and ownership equity at a given point in time.
    2. An income statement, also known as a statement of comprehensive income, statement of revenue & expense, P&L or profit and loss report, reports on a company's income, expenses, and profits over a period of time. A profit and loss statement provides information on the operation of the enterprise. These include sales and the various expenses incurred during the stated period.
    3. A statement of cash flows reports on a company's cash flow activities, particularly its operating, investing and financing activities.
  • For large corporations, these statements may be complex and may include an extensive set of footnotes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.

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