Question

Differentiate between “financial statements” and “financial reporting.”

Answer 1

Financial Statement:

Financial statement on the other hand are also Financial reports. But in the business and Accounting the term financial statements has more of a formal status.

usually the financial statement included in the complete set of general purpose financial statement.

The term financial statement usually used for all or any of the following statements.

• statement of financial position
• statement of comprehensive income or income statement
• statement of cash flows
• statement of changes in equity

Financial statements are one such reports that are prepared on regular basis as specific entities required to do so according to applicable laws .

Financial Reports:

Financial Report means any report about monitory matters. In other words a financial report is about the transaction that have financial effects. To run a business financial reports play important role as relevant financial information is transmitted to relevant users inside and out side entities to help them in making decisions

Eg: Bank statement, aged debtors analysis report etc.

Some financial report are meant only for management and some are communicated to the people outside entity as well