Financial statements must comply with the following –
Fundamental characteristics:
- Relevance
- Faithful Representation
Enhancing Representation:
- Verifiability
- Comparability
- Understandability
- Timeliness
Financial statements contain four main components:
- Statement of Cash Flow
- Statement of Financial Performance (Income statement, Profit and Loss (P&L) report)
- Statement of Financial position (Balance Sheet)
- Statement of retained earning (changes to equity)
Financial Statements combine these three components to give stakeholders an overview of the company’s overall financial position and can be used to provide reports to government, creditors, investors, and other external parties.
Powell Enterprises stands out from the competition by explaining and advising clients in an easy and accurate way in regards their financial position and identifying opportunities, risks, strengths and weaknesses.