Annual Financial Statement is the financial report document following on from the results of 12-months worth of reports. Often the annual financial report is based on the information from the calendar year report. Less often it is the company’s fiscal year.
A company is required to provide financial statements interim (within the fiscal year). The reports that later compile the annual financial statement are the balance sheet (the company’s assets, also read about asset turnover ratio), the income statement (the company’s income and expenses), the statement of stockholders equity (the transaction within a period of time), and the cash flow statement. The above statements are filed monthly, quarterly, and once in half-year. The information withdrawn from the report will frame the annual financial statement.
Supported by the financial notes sections the above reports are analyzed, discussed, and filed in the form of the annual financial statement. It is issued yearly in the third month once the accounting period is over.
Privately-held companies, as well as governmental institutions, are required to provide the annual financial statement. It is regulated by the Article 112 of the Constitution. The annual financial statement demonstrates the anticipated income and expenditures throughout the year. In the case of private companies, the statement describes the management performance and the company’s financial gains. They issue the annual financial statement to communicate with individual stakeholders.