Definition of Financial Reporting
Financial reporting includes all of a company’s communication of financial information to people outside of the company.
Examples of Financial Reporting
Financial reporting includes the following:
- External financial statements (income statement, statement of comprehensive income, balance sheet, statement of cash flows, and statement of stockholders’ equity)
- The notes to the financial statements
- Press releases and conference calls regarding quarterly earnings and related information
- Quarterly and annual reports to stockholders
- Financial information posted on a corporation’s website
- Financial reports to governmental agencies including quarterly and annual reports to the Securities and Exchange Commission (SEC)
- Prospectuses pertaining to the issuance of common stock and other securities
