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This most important parts
1. The statement of financial position.
2. income statement.
3. The statement of cash flows.
4. Statement of Changes in Financial Position.
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The integral part of the financial statements is the notes on the financial statement and it's usually accompanied with the financial statement
Notes to financial statements Also referred to as footnotes. These provide additional information pertaining to a company's operations and financial position and are considered to be an integral part of the financial statements. The notes are required by the full disclosure principle.
Notes to the financial statement present all such information which cannot be presented on the face of income statement, balance sheet, statement of cash flows and statement of changes in equity.
Typical notes to the financial statement are:
1.An introduction of the business outlining its legal status, its country of incorporation and the name of its parents if any and a statement about the company's areas of business and its operations.
2.A summary of accounting policies related to revenue recognition, inventories, property, plant and equipment, financial instruments, etc.
3.A schedule of property plant and equipment showing the addition and deletion of assets, related movement in the accumulated depreciation account and book value.
4.A breakup of cost of sales, selling expenses and administrative expenses.
5.A detailed disclosure of different classes of financial instruments and their related risks.
6.A breakup of the gross amounts and present values of lease obligations of the business.
7.A detail of transactions with related parties.
8.A detail of contingencies that may affect the business in future, for example legal proceedings against the business.
9.A description of major events that occurred after the balance sheet date, etc.
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The main Integral part of Financial Statements:
1. Balance Sheet.
2. Income Statement.
3. Statement Of Retained Earnings.
4. Statement Of Cash Flows.
There are five parts of financial statement. If only one integral part is meant then it should be the statement of financial position.
Apart from Most Important Statements (Statement of Financial Position, Income Statement, Statement of Cash flow and Changes in equity) the most integral part is the notes & disclosures in Financial Statement
