Financial Information
In the UK, the Accounting Standards Board has prepared a Statement of Principles that sets out what information is considered useful for making financial decisions. This information can be categorised as follows:
- Primary Statements: statements of financial performance; statement of financial position; cash flow statement.
- Notes to financial statements: accounting policies; analysis of figures in primary statements; information about any uncertainties affecting the financial position.
- Additional information: operating and financial review statement; chairman’s statement; directors’ report; historical summaries; non-accounting / non-financial information.
- Other methods of reporting: letters to shareholders; press releases; internet or other media activities.
- Miscellaneous: analysts’ reports; economic statistics; news articles.
Only the first two items in the list are relevant to Financial Accounting.