Financial statements are the source of financial data for the purpose of making decisions . That is why financial accounting carries such a high weightage on the accuracy, reliability, and relevance of the information on these financial statements.
financial statements includes
statement of financial position
statement of change in equity
statement of cash flow
and the Noted (disclosure) to financial statements
The objective of financial statements is to provide disclosures related to financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions." Financial statements should be understandable, relevant, reliable and comparable and result oriented
The target of budget summaries is to give data about the money related position, execution and changes in monetary situation of an endeavor that is valuable to a wide scope of clients in settling on monetary choices." Financial results should be justifiable, significant, solid and similar