Collect the set

It depends who you ask

By now, you probably know what a financial statement is. But what exactly constitutes a complete set of statements? It depends who you ask.

  • For internal company use, a cash flow statement, profit and loss account and balance sheet are often enough – usually supplemented by some written explanatory information and perhaps some tables summarizing, for example, changes in fixed assets.

  • For official reporting, it is increasingly mandatory to include segment reports (a slightly off-putting name for a breakdown of the numbers by territory and industry).

  • For compliance with international accounting standards, you need all of the above plus a statement of changes in shareholders’ equity and mandatory explanatory ...

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