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Financial Statements

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Significance of Financial Statements and it's Impact on Business

Referencing Styles : Number of pages:

As we know, the IAS 1 requires a complete set of financial statements comprising of 

  • A statement which describes financial position of the company at the end of financial year.
  • A statement of profit and loss and encompassing earning in the financial year.
  • A statement which provides if there is any change in the equity of the company in that financial year.
  • A statement comprising cash flows for the financial year.
  • Notes which summarises all the accounting policies used by the company and other explanatory information.
  • A statement which provides financial position of the company at the beginning.

Explain in detail the significance of each of these statements and how these have an impact on the business or the individual financial status.

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