Finanical Reporting / Financial Statements

The preparation of various financial statements can be performed on a regular or as-needed basis and can be in one or all of the following forms:

Compilation: least comprehensive and generally for internal purposes
Review: fairly comprehensive and requested by an outside party
Audit: most comprehensive and required by an outside party or regulatory agency

Balance Sheet. Reflects assets, liabilities and equity of company at a specific end date. Assets and liabilities are classified between current and long-term while equity section reports cumulative contributions, distributions and income.

Statement of Operations. Reflects revenues and expenses of company during a specific time period. Expenses usually detailed in two or more categories while income taxes and extraordinary items are listed separately.

Statement of Cash Flows. Reflects cash activity of company. Cash flows allocated between operating, investing and financing activities. First line ties to income reported on Statement of Operations while last line ties to cash reported on Balance Sheet.

Statement of Changes to Equity. Reflects equity activity of company. Breaks down contributions from and distributions to investors and income or loss from operations. Certain types of fair value and non-cash transactions are reported here too.