Types of Corporate Financial Statements – Financial statements are reports that show the financial condition of a company in a certain period. Information about the financial condition can later be used by interested parties such as management, lenders, investors, and shareholders to assess the company’s performance and determine what steps should be taken thereafter. In accordance with Financial Accounting Standards in force in Indonesia, there are several types of reports that are important for companies.
1. Income Statement
As the name implies, the income statement serves to help you find out whether the business is in a profit or loss position. An income statement is usually referred to as an income statement or profit and loss statement.
Generally, there are two ways used to compile the income statement, namely single step (direct way) and multiple steps (stepwise). The single step method is relatively easier than multiple steps. You only need to add up the entire income from top to bottom into one group, then reduce it to the total expenses or expenses in the applicable period. Whereas, in the multiple step method, revenue is divided into two categories, namely operating income (which comes from the main activities) of the company and non-operating income (which comes from outside the main activities) of the company. The division of categories also applies to expenses or costs.
There are several important aspects that must be written in the income statement, including income, operating profit and loss, loan burden, tax burden, profit or loss for the company, ordinary lubar post, and minority rights. This company’s profit or loss includes profit or loss from the company’s normal activities, profit and loss for the current period and also the profit and loss of affiliated and associated companies based on the equity method.
2. Cash Flow Statement
Also called a cash flow statement, the cash flow statement is used by the company to show the company’s cash inflows and outflows for a certain period. Moreover, the cash flow statement can also function as an indicator of the amount of future cash flow based on the latest cash flow data. This type of report is also the instrument of accountability for cash inflows and cash outflows during the reporting period.
You can view the cash inflow statement from several sources. Examples include the results of operational activities and cash obtained from funding or loans. Meanwhile, cash outflows can be seen from how much the total burden of costs incurred by the company, both for operational and investment activities.
3. Capital Change Report
This type of financial statement provides information about the amount of capital your business has for a certain period. Through the capital change report, you can get data on how much the capital changes have occurred, complete with the causes of the changes.
Ideally, to prepare a report on changes in capital, you need some special data, such as capital at the beginning of the period, withdrawal of personal funds by the owner for the year concerned, and the amount of net profit or net loss in the relevant period. In other words, you must prepare an income statement before making a report on changes in capital.
4. Balance Sheet Report
In accounting, the balance sheet is called the balance sheet. The balance sheet report serves to show the condition, information, and financial position of your business on the specified date. By preparing a balance sheet, you can find out data about the amount of assets in the form of assets or assets, liabilities in the form of debt, and equity or capital of the company. The balance sheet consists of three elements, namely assets, liabilities, and equity. If all three are related to the accounting equation, then a formula like this will be formed: Assets = liabilities + equity.
5. Report on Financial Statements
Not too familiar with this type of financial statement? Reports on financial statements are reports that are made in relation to the report presented. The purpose of making it is to provide a more detailed explanation of the matters contained in other types of reports. Not to forget to provide a cause or reason related to the financial data presented. The preparation of reports on financial statements will make it easier for you to understand other financial statements more easily and efficiently.