General Features of Financial Statements

The general features in the preparation and presentation of financial statements are:


1. Fair presentation
2. Going Concern
3. Accrual Basis
4. Materiality and aggregation
5. Offsetting
6. Frequency of reporting
7. Comparative information
8. Consistency of presentation

Financial Reporting

Financial reporting is the provision of financial information about an entity to external users that is useful to them in making economic decisions and for assessing the effectiveness of the entity's management.

The principal way of providing financial information to external users is through the annual financial statements.

However, financial reporting encompasses not only financial statements but also other means of communicating information that relates directly or indirectly to the financial accounting process.

Financial reports include not only financial statements but also other information such as financial highlights, summary of important financial figures, analysis of financial statements and significant ratios.

Financial reports also include non-financial information such as description of major products and a listing of corporate officers and directors.