đIn a business, the objective of Financial Reporting is to give financial and economic information to those who are interested in that company or organization.
đ„ So users of Financial Reports are usually creditors, like banks or other lenders, and equity shareholders, like investors or partners. Other users could be suppliers (that want to see how much reliable is that company) and other possible stakeholders.
đ What users see in Financial Reports are data and pieces of information useful to analyze potential returns, along with time and probability of getting those returns.
đ° Those data are available in three main Financial Statements: the Balance Sheet, that represents the patrimonial situation of the company; the Income Statement, for profit and loss analysis; the Cash Flow Statement, where cash movements are linked to the daily business operations or long term operations like financing or investments.
đ°The Return will be = (Ending value + Interest or Dividends received â Initial Investment) / (Initial Investment).
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