Financial reporting is the disclosure of financial results and related information to management and external stakeholders (e.g., investors, customers, regulators) about how a company is performing over a specific period of time.
Financial reports are usually issued on a quarterly and annual basis and include the following:
- Balance Sheet or Statement of Financial Position – reports on a company’s assets, liabilities, and owners’ equity at a given point in time, usually the end of a fiscal quarter or year.
- Income Statement or Profit and Loss Report – reports on a company’s income, expenses, and profits over a period of time, such as a fiscal quarter or year. This includes sales and the various expenses incurred during the stated period.
- Statement of Changes in Equity or Statement of Retained Earnings – reports on the changes in equity of the company during the stated period, such as a fiscal quarter or year.
- Cash Flow Statement – reports on a company’s cash flow activities, including its operating, investing, and financing activities. These are typically referred to as sources and uses of cash.
We at Jack Salem & Associates strive to achieve the highest standards of accuracy, reliability and integrity in reports we prepare.