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As per IAS 1, Financial statements are set of reports that provide information about financial position, financial peformance and cash flow of an entity. More precisely, following are the components of financial statements:
All of the above components, including comparative informaton of the previous period, are mandatory to be termed as financial statements.
On the other hand financial report is a general term that includes above mentioned statements and notes plus any other report that is used by management to understand financial aspect of an entity.
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Financial statements as required by different standards mainly inlcude balance sheet, income statmenet and cash flow whereas financial reports display various details including various ratios crucial for decision making.
The financial statement is the summary of annual reports such as, balance sheet, profit & loss accounts, cash flow statement, but don't provide detail of revenue & expenses. Financial reports also provide accounts detail such as revenue, expenses, accounts payables, accounts receivable, etc.
In financial statement lists we are looking at the Accounts as it concerns Financial Reporting itself. Example the Income Statement shows the revenue with the expenses and P&L. Also is the Balance sheet which is a statement housing the Assets, Liabilities, and Equity of the firm. The Cash flowStatement analysis which is a statement noting the inflow of cash for purposes of investment, finanacing and so on. We can say in general that the financial statement list are Income, Balance Sheet and Cash flow statements.
Financial Reporting is the analysis of the Financial statement list for the purposes of Managerial decision making, and for other users use for Planning and Investment.
The financial report is applicable to all people, but the financial statements are for individual persons
Reporting is used to provide information for decision making. Statements are the products of financial reporting and are more formal.
One of the difference is financial reports are used internally for decision making and for finalizing the accounts. while the Financial statements are official set of documents after submitting to the relevant tax authorities and they are used for external purposes like investors, lenders etc.
Financial report is the part of financial list, four documents that are a legal requirement:
Income statement.
Balance sheet.
Cash flow statement.
Statement of changes in equity.
Financial reporting and financial statements are often used interchangeably. But in accounting, there are some differences between financial reporting and financial statements. Reporting is used to provide information for decision making. Statements are the products of financial reporting and are more formal.
