CAT / FIA FBT Syllabus C. Accounting And Reporting Systems, Controls - External Reports - Notes ^{1 / 2}

The Income Statement

• The income statement lists revenues and expenses and calculates the company's net income or net loss for a period of time. 

  Net income means total revenues are greater than total expenses. 

  Net loss means total expenses are greater than total revenues.

  It serves as the basic measuring stick of profitability. 

  The income statement provides important financial information to business managers, investors, lenders, and analysts.

The Statement of Cash flows

The statement of cash flows reports the cash receipts, cash payments, and the net change in cash resulting from the operating, investing, and financing activities of a company during the period.

The cash flow statement is intended to:

1. provide information on a firm's liquidity and its ability to change cash flows in future circumstances

2. provide additional information for evaluating changes in assets, liabilities and equity

3. improve the comparability of different firms' operating performance by eliminating the effects of different accounting methods

4. indicate the amount, timing and probability of future cash flows

The Statement of Financial Position

• The statement of financial position shows what resources are owned by a business ("assets") and what it owes to other parties ("liabilities") at a particular point in time.

  It also shows how much has been invested in the business and what the sources of that investment finance were.

Pressure from stakeholders has led to companies to report non-financial data.

Integrated reporting

This refers to the integration (combining) of financial and non-financial information into a single document. An Integrated Report comes with the Financial Statements

Sustainability 
Sustainability is concerned with protecting the environment from damage — to be sustainable, an activity should be able
to continue forever.