What are the financial statements?
The financial statements generally include two statements: a balance sheet and a statement of profit and loss which are required for external reporting and also for internal needs of the management like planning, decision-making, and control.
Who are the users of financial statements?
The users of financial statements include management, investors, shareholders, creditors, government, bankers, employees, and the public at large. Financial statements provide the necessary information about the performance of the management to these parties interested in the organization and help in taking appropriate economic decisions.
How has the content and structure of a company's financial statements changed?
In recent years, the content and structure of a company's financial statements have undergone significant changes. With the development of economic relations, the principles of organization and methodology of accounting and reporting are also dynamically changing.