Financial reporting refers to the process of preparing and presenting financial information about a company's performance and position over a particular period. This information is used by stakeholders, such as investors, creditors, and regulators, to make informed decisions about the company.

Financial Reports Typically Include:

• Balance Sheet: A snapshot of the company's financial position at a specific point in time.
• Income Statement (Profit & Loss): A summary of revenues, expenses, and net income over a specific period.
• Cash Flow Statement: A summary of cash inflows and outflows over a specific period.
• Notes to the Financial Statements: Additional information and explanations about specific items on the financial statements.

The Purpose of Financial Reporting is to Provide:

• Transparency and accountability
• Insight into a company's financial health and performance
• Compliance with legal and regulatory requirements
• Decision-making support for stakeholders