Accounting statements are a combination of information about the results of an institution’s economic activity for a certain period of time and about its material and property status. The regulatory system provides a set of indicators that reflect the organization’s position at the reporting date and financial results obtained as a result of its activities for the reporting period. It received the appropriate name, since during this time the institution must prepare accounting financial statements. This procedure is primarily necessary for the organization.
The generalization of accounting information is associated with the need to clarify or adjust the course of business. In this regard, the financial statements must identify details that, by their content, may in any way affect the assessment made by users of information about profit, loss, general financial situation or the state of ownership. Consumers of this data are owners, founders or managers of the enterprise. Accounting financial statements on the results of the institution, the level of financial stability and property status are quite significant for those investors who are interested in investing capital. At the same time, each commercial enterprise must have the constituent documents established by the owner.
Accounting financial statements have a special principle of preparation and publication. Its value lies in the cost-effectiveness, timeliness, reliability, in accordance with the established procedure of registration, integrity and publicity. Changes in accounting policies must be introduced at the beginning of the fiscal year in order to maintain data comparability. If they are not available, then such accounting and financial statements need to be adjusted, during which it is necessary to adhere to the provisions established by the regulatory accounting system. Methodological indicators should be uniform. The reasons and specifics of the adjustment should be explained in the corresponding note to the report and balance sheet on financial results.
The financial statements include: information about profit and loss, balance sheet, audit report, explanatory note and appendices. When compiling it, you must adhere to some rules. First of all, it should be remembered that the data on the financial results and position of the enterprise must be reliable and be provided in full. In the process of preparing financial statements, you should adhere to neutrality, because it is required to be prepared in the interests of all users. In addition, it is important to follow the sequence of content and forms. The financial statements are supported by an audit report.