FINANCIAL STATEMENTS By Institution Financial statements Financial statements are accounting documents meant to explain financial position of the company to its shareholders. There are various rules governing production of these statements, and standards, which they are suppose to meet. Understanding these guidelines and format of these financial statements is imperative to accountants. Financial reporting is a means by which the management communicates the financial position and operational result of an organization, a company, a non-profit making organization, or the government. Financial reporting of a company includes result of operation, financial condition, and disclosures, given in financial statements. These financial statements are required to meet accounting standards set by Financial Accounting Foundation (FAF), Financial Accounting Standards Board (FASB), and Government Accounting Standards Board (GASB) (GAAP, 2016). Collectively, they make up the Generally Accepted Accounting principles (GAAP). The GAAP consists of objectives, standards, concepts, and conventions developed to guide the preparation of financial statements (GAAP, 2016). Through GAAP, accountants are required to provide financial information that is accurate, consistent, fair, and honest to ena
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