The Short Explanation about the Financial Statements
September 28th, 2010 | Author: Admin
The Financial Statements are documents that should prepare any company at the end each year, in order to get to know the financial situation and the economic performance in the activities throughout that period.
The Financial Statements reflect the whole of concepts of operation and operation of enterprises, all the information they are shows should serve to know all the resources, obligations, the capital, income and expense, costs and all the changes that were presented to them out of the fiscal year.
It also to support the planning and management of the business, the decision-making, analysis and evaluation of the responsible for the management, exercise control over the items internal economic and to contribute to the impact assessment that this is on the social factors external.
For this purpose, used the following financial statements:
General Balance Sheet
It is a report that organizes the data of the accounting to publicize the situation of the company in a certain date; it also presents in a clear the value of their properties and rights, their obligations and its capital.
The Balance Sheet must develop at least once a year and to date to December 31, signed by the Accountant, the Reviewer Prosecutor and the Manager. When it comes to societies, is approved by the general assembly.
State of Gains and Losses
Is the document accounting that shows the result of the operations of an entity during a specified period, taking as a parameter income and expenditure; and finally, provides the usefulness or (loss) net of the company.
State of Cash Flows
It is considered cash flow all the inflows and outflows of money to the company registered in the account box; all the deposits and drawings in the bank account (to be nullified the transfers between Cash and bank) and finally is considered the so-called cash equivalent, which are investments of the short term, quick convertibility in money, with maturities very close and very low risk of devaluation. For example: term deposits, Mutual Funds others.
Is to say this state shows the movement of revenues and expenditures and the availability of funds to a certain date.
State of Changes in the Heritage or Equity
The state of changes in equity, reports of all changes in equity derivatives of:
- The balance total revenue and expenditure recognized.
- The changes arising in the net worth by operations with the partners or owners of the company when acting as such.
- The remaining variations that occur in the equity
- It was also informed of the adjustments to equity due to changes in accounting and bug fixes.
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Categories: Accounting Information
