Difference between Financial Statement and Financial Report!

Difference between Financial Statement and Financial Report!

In the world of accounting there are 2 terms that are not much different, namely Financial Statements and Financial Reports. Yes, the two may have words that are not much different, but still these two terms have different uses. The difference between the two is clearly visible in several ways as below:

Difference between Financial Statement and Financial Report

Financial Statement

Some people certainly have an interest in developing their business or business. This is important so that they can find out more about the financial condition of their company, considering that the financial condition of a company will certainly be reflected in its balance sheet. This financial statement is also an expense from accounting.

Financial Statements also have several types, including:

  • Financial Condition Report
  • Other comprehensive income statement
  • Cash flow statement
  • Statement of changes in shareholder equity
  • Notes to Financial Statements

Purpose of Financial Statements

Financial statements or financial statements are reports that provide information relating to the financial position, performance and changes in financial position within the company that are useful for users in making decisions. However, this Financial Statement does not provide information that users may need to make economic decisions that generally describe the effects and financial events that have occurred without requiring the provision of non-financial information.

This Financial Statement can also show what has been done or accounted for by management for the resources entrusted to it. Users who want to see what management has done or are responsible for can do so to make or make business decisions.

Such decisions may include decisions such as decisions to hold or sell their investment in the company or to appoint or replace management.

Financial Statement Users

Many use Financial Statements for various types of financial management needs, some of which are:

  • Use of financial statements
  • Investors / Lenders
  • Employee
  • Lender / borrower
  • Suppliers and other corporate creditors
  • Customer
  • Government
  • Public

Financial Report

The financial report or financial report is a guarantee output that supports the use of financial statements. This means that financial statements are integrated with other information that is directly or indirectly related to the information provided by the financial accounting system, such as information on company assets.

This Financial Report is made for internal purposes only. This financial information includes all matters regarding the provision and delivery of financial information.

Type of Financial Report

There is no type in the Financial Report, because financial reporting is flexible. Some things in financial reporting usually contain things like:

  • Company profile
  • Inventory overview
  • Discussion of financial performance results
  • Consolidated financial statements
  • Company data

financial reporting is contained in the annual report, so some people also consider the financial report as an annual report.

Purpose of financial report

  • Provide useful information for investors, creditors, and other potential users in assisting decision making on various financial needs.
  • Provide information about financial resources, complaints about these resources and changes.
  • Estimated cash flow into the company

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