The financial statements of the organization is a document of a unified form that fully discloses the financial condition of the company, describes the property belonging to it, and reflects the results of its activities for a certain period. It is worth noting that all the data presented in the report are considered indicators interconnected and interdependent. That is, the information is reasonable, does not possess the property of randomness.
So, the financial statements of the organization are developed periodically based on the general ledger, which is maintained during the reporting period. In this case, the balance for each account of this book is considered. Entries are made either on forms chosen by the enterprise independently, or forms recommended and compiled by the Ministry of Finance are used.
According to current legislation, any financial statements of an organization must contain basic documents. These include the balance sheet, income statement, possible annexes to the report or balance sheet, an explanatory note when making adjustments, and an audit, confirming the correctness of the calculations. When compiling the balance, a comparative analysis of the data of the previous period and the reporting one is carried out. If, for some reason, these indicators do not correspond, then the justification for such discrepancies should be contained in the explanatory note.
As a rule, reports are prepared monthly and quarterly, but the annual balance is considered the final one. Interim reporting allows timely identification and elimination of problems and shortcomings in the work of various departments, which will save the company from serious problems in the future. The official deadline for the development of the annual report is the period from January 1 until December 31.
IP accounting reports can be maintained in two ways: in the usual or in a simplified form. Moreover, the head has the right to choose a specific accountant's own scheme of work. In addition, if at first a simplified form was applied, and then the need arose to go over to a complex one, an individual entrepreneur has the right to make such a transition in the next reporting period. Of course, this procedure should be carried out in full compliance with the requirements of current legislation.
When compiling the financial statements of the organization, the specialist must clearly remember the basic principles and strictly abide by them. For example, the balance sheet method is enshrined in the accounting policies of the enterprise. In addition, all data entered in the reporting document must be supported by reason, truthful and timely. Any operation should be reflected in the balance sheet, and withholding information is considered illegal. An important requirement is the need for full compliance of the input data with the final indicators of the past period. Amendments may be made only with the application of an explanatory note.
In addition, each company should conduct an audit of the financial statements of the organization, that is, verify the correctness and validity of each record on the accounts, as well as the correctness of the calculation of the main indicators. This check can be carried out by a special unit or an authorized person, and in some cases the company considers it appropriate to resort to the help of a specialized company. If the results of the audit revealed errors and shortcomings, the reporting is returned to the accountant to make appropriate adjustments.
A specialist is required to develop a report only in national currency and in the language of our state. The current legislation identifies a group of business entities whose duty is to publish a report in official print media. The financial statements of the organization must be printed and published no later than June of the month of the future period.