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FINANCIAL REPORTS
Inspired Leadership – Business Acumen
Financial accounts are concerned with classifying,
measuring and recording the transactions of a
business.
At the end of a period (typically a year), the following
financial statements are prepared to show the
performance and position of the business:
Profit and Loss Account
/ Income statement
◦Describing the trading
performance of the
business over the
accounting period
Balance Sheet
◦ Statement of assets and
liabilities at the end of an
accounting period
Cash Flow Statement
◦Describing the cash
inflows and outflows
during the accounting
period
Directors’ Report
◦ Description by the Directors
of the performance of the
business during the
accounting period and other
disclosures, particularly in
relation to directors'
shareholdings, remuneration
etc.
Financial Accounts are geared towards external users
& need to provide answer to questions like:
SHOULD I INVEST MY
MONEY IN THIS COMPANY?
SHOULD I LEND MONEY TO
THIS BUSINESS?
WHAT ARE THE TAXABLE
PROFITS?
Every registered company must give
a fair and true reflection of its
annual financial performance:
 A directors’ report
 An audit report
 A profit and loss account
 A balance sheet
 A statement of total recognised gains/losses
 A cash flow statement
 Notes to the accounts

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Financial reports

  • 2. Financial accounts are concerned with classifying, measuring and recording the transactions of a business. At the end of a period (typically a year), the following financial statements are prepared to show the performance and position of the business:
  • 3. Profit and Loss Account / Income statement ◦Describing the trading performance of the business over the accounting period
  • 4. Balance Sheet ◦ Statement of assets and liabilities at the end of an accounting period
  • 5. Cash Flow Statement ◦Describing the cash inflows and outflows during the accounting period
  • 6. Directors’ Report ◦ Description by the Directors of the performance of the business during the accounting period and other disclosures, particularly in relation to directors' shareholdings, remuneration etc.
  • 7. Financial Accounts are geared towards external users & need to provide answer to questions like: SHOULD I INVEST MY MONEY IN THIS COMPANY? SHOULD I LEND MONEY TO THIS BUSINESS? WHAT ARE THE TAXABLE PROFITS?
  • 8. Every registered company must give a fair and true reflection of its annual financial performance:  A directors’ report  An audit report  A profit and loss account  A balance sheet  A statement of total recognised gains/losses  A cash flow statement  Notes to the accounts