Finantskirjeldused

Finantskirjeldused, also known as financial statements, are a set of records that provide a comprehensive overview of a company's financial health and performance. They are prepared and reviewed by the company's management and audited by an external auditor to ensure accuracy and reliability. The primary types of financial statements include the balance sheet, income statement, and cash flow statement.

The balance sheet, also known as the statement of financial position, presents a snapshot of a company's assets, liabilities, and equity at a specific point in time. It provides information about what the company owns and owes, as well as the amount of money shareholders have invested in the business.

The income statement, also known as the profit and loss statement, reports a company's financial performance over a specific period, typically a quarter or a year. It shows the company's revenues, expenses, and net income, which is the amount of profit or loss after all expenses have been deducted from revenues.

The cash flow statement provides information about the inflows and outflows of cash within a company over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for understanding a company's liquidity and ability to meet its short-term obligations.

Financial statements are essential for various stakeholders, including investors, creditors, management, and regulatory bodies. They help stakeholders make informed decisions about investing in, lending to, or working with a company. Regularly prepared and audited financial statements are a fundamental requirement for publicly traded companies and are often mandated by law for private companies as well.