fbpixel Concept 37: Role of Financial Statements | IFT World
101 Concepts for the Level I Exam

Concept 37: Role of Financial Statements


Financial reporting: The role of financial reporting is to provide information about a firm’s performance and financial position. Financial reports include: balance sheet, income statement, cash flow statement, statement of changes in equity.

Financial statement analysis: The role of financial statement analysis is to use the financial reports in combination with other sources of information to decide whether to invest in a firm.