What is financial reporting?
Financial reporting refers to the process of preparing and presenting financial information about a business to stakeholders such as investors, regulators, and management.
Why is financial reporting important?
It provides transparency and supports informed decision making. Accurate reporting builds trust with investors and ensures compliance with regulations.
What does financial reporting include?
It includes financial statements, management reports, and disclosures covering performance, position, and cash flow.
Who uses financial reports?
Investors, lenders, regulators, and internal management all rely on financial reports.
How often is financial reporting done?
Reporting occurs annually for compliance, and more frequently for internal analysis, often monthly or quarterly.