What does a financial report consist of?
A financial report typically consists of the following components:
- Financial statements: These are the main components of a financial report, and they provide information on a company's financial performance and position. The three main financial statements are the balance sheet, income statement, and cash flow statement.
- Notes to the financial statements: These provide additional information and explanations about the financial statements, including details about accounting policies, significant transactions, and other relevant information.
- Management Discussion and Analysis (MD&A): This section provides an analysis of the financial statements and other key performance indicators, and gives context to the financial results. It often includes a discussion of the company's business strategy, risks and uncertainties, and outlook for the future.
- Auditor's report: This is a report issued by the independent auditor who has examined the company's financial statements and attests to their accuracy and compliance with accounting standards.
- Other supplementary information: This may include information such as a summary of significant accounting policies, a description of the company's business operations, and any other relevant disclosures or information.
Overall, a financial report is a comprehensive document that provides a detailed picture of a company's financial performance and position, as well as other relevant information that stakeholders need to make informed decisions.