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Financial report means any report about monitory matters. In other words a financial report is about the transactions that have financial effects. To run a business financial reports play important role as relevant financial information is transmitted to relevant users inside and outside the entity to help them in making decisions. For example; bank statement, aged debtors analysis report etc.
Some financial statements are prepared on regular basis at equal intervals and some are prepared as and when needed. Some financial reports are meant only for management and some are communicated to people outside the entity as well.
Financial statements on the other hand are also financial reports. But in the business and accounting the term financial statement has more of a formal status.
Usually financial statements refer to either a statement included in the complete set of general purpose financial statements or a complete set of general purpose financial statements. And due the same reason whenever the term financial statement is used, it is often assumed that a report is about entity's financial position, financial performance, cash flows or fluctuations in equity.
The term financial statement is usually used for all or any of the following statements:
- Statement of financial position
- Statement of Comprehensive Income or Income Statement
- Statement of Cash Flows
- Statement of Changes in Equity
As said earlier that financial statements are in fact financial reports but presented following a certain set of instructions as given by applicable financial reporting framework. For example International Financial Reporting Standards.
Majority of financial reports for internal purposes have such format or presentation rules that are set by the management or the user himself and sometimes no particular format is followed. In addition to that some financial reports are prepared on regular basis after equal intervals and some are prepared only when they are needed and are named as contingency reports. Financial statements are one of such reports that are prepared on regular basis as specific entities are required to do so according to applicable laws.
In the end, again there is no difference between the terms financial statement and financial report. But their usual interpretation and meaning in the financial and accountancy world is somewhat different.
What else can I help you with?
Describe the diffferences between financial statement income and taxable income?
There is some difference in financial statement income as well as taxable income as in financial statement income there are items which are not allowed by tax authorities and main item is depreciation. Other factors are that tax is deducted on income which is received while in financial statement income included revenue which is not received or accrual items that needs to be adjusted as well that's why financial statement income and taxable income is not same.
Is income statement same as financial statement?
no. income statement is a only a statement in financial statements.
What is your conclusion in financial statement?
the financial statement helps one to know the difference between income or gains and expenses or losses in p and l A/C.and the balance sheet to compare with the last years profits.
What is the difference between a cash budget and an income statement?
Income Statement is a financial statement which shows all the income and expenses of company, while cash statement shows the receipts and payments of company. In cash based accounting system cash statement is also work as a income statement as everything is dealt on cash bases but in accrual accounting tracking of receipts and payments and income and expense is a separate tasks.
Which financial statement summarises income and expenditure?
income statement
What is the difference between a profit and loss statement and an income statement?
A profit and loss statement shows a company's financial performance over a specific period, detailing revenue, expenses, and net profit or loss. An income statement is a broader term that can refer to the same document or a more comprehensive financial report that includes additional information about a company's operations.
What is the difference between income tax expense and income tax payable?
Income statement & balance sheet.
What is the difference between a P and L Statement and an Income Statement?
They are the same thing. "P and L Statement" is an older less-commonly used term for an "Income Statement."
Which financial statement shows the net income earned by a company?
The income statement.
Difference between marchindising income statement and manufacturing income statement?
Both statements are difference in this way that in merchandising income statement there is only one purchases items while in manufacturing income statement there is complete manufacturing account is also prepared to show manufacturing process as well.
Is revenue part of an income statement?
Yes revenues and expenses are part of income statement and difference between revenue and expenses is called net income or loss.
What financial statement is prepared first?
Income statement.
