According to the Financial Accounting Standards in force in several countries, complete financial statements consist of 5 types of reports, namely income statements, changes in capital reports, balance sheets, cash flow statements and notes to financial statements. Aside from that, you may hire myob bookkeeping services if you require bookkeeping experts to assist your company.
Here are the formats that you must know:
Income statement or income statement or profit and loss statement is a financial report that serves to assess financial performance whether the company experiences profits or losses in one accounting period. In addition to knowing the advantages or disadvantages, the income statement is also made to provide information about corporate taxes, management evaluation materials and assist in decision making.
In the financial statement format, profit and loss, there are several things or aspects that are in it, including income, expenses, cost of production, tax expense, profit or loss of the company.
Format of Income Statement Financial Statements
Basically, the income statement format consists of two forms, namely a single step, and multiple steps.
Statement of changes in capital
Capital change report is a report that describes changes in the form of either increasing or decreasing net assets for a period. At the beginning of the establishment of the company, you as the owner of the company must deposit the capital. During operation, of course, the initial capital will change according to its performance.
In the capital change report, you can also see the cause of the change in the capital is not just the change. Some of the data needed to make this report are initial capital, private or withdrawal of funds in that period, and the total net profit or loss obtained. Because to make this report needed profit and loss, this report is made after the income statement is completed.
Balance Sheet Report
Like the name balance sheet or balance sheet is a financial report that shows the position and financial information of a company. In the balance sheet, you will see complete and detailed information about assets, liabilities and company capital. In other words, the elements in the balance sheet are only those three accounts.