Finantsaruandesse

Finantsaruandesse refers to financial statements in Estonian. These are formal records of the financial activities and position of a business, person, or other entity. The primary purpose of financial statements is to provide information about the performance, financial position, and cash flows of an entity to a wide range of users. These users include investors, creditors, management, and regulatory bodies.

The most common financial statements are the balance sheet, the income statement (also known as the profit and loss statement), and the cash flow statement. The balance sheet provides a snapshot of an entity's assets, liabilities, and equity at a specific point in time. The income statement reports an entity's revenues, expenses, and profits or losses over a specific period. The cash flow statement details the cash generated and used by an entity during a period, categorized into operating, investing, and financing activities.

In Estonia, the preparation and presentation of financial statements are governed by accounting laws and standards, such as the Estonian Accounting Act and International Financial Reporting Standards (IFRS) for listed companies. These regulations ensure that financial statements are prepared consistently and comparably, making them a reliable source of information for decision-making. Accurate and transparent financial reporting is crucial for building trust and facilitating economic activity.