Accounting financial statements and the principles of its preparation

Accounting reporting is a set of information on the results of the economic activity of an institution for a certain period of time and its material and property status. The system of regulatory regulation presents a set of indicators that reflect the position of the organization at the reporting date and the financial results obtained as a result of its activities for the reporting period. He received the appropriate name, because during this time the institution should compile accounting financial statements. This procedure, first of all, is necessary for the organization.

The generalization of accounting information is related to the need to clarify or adjust the course of economic activity. In this regard, the financial statements should identify details that can influence the user's assessment of profit, loss, general financial situation or property status in any way. Consumers of this data are the owners, founders or managers of the enterprise. Accounting financial statements on the performance of the institution, the level of financial stability and property status is quite significant for those investors who are interested in investing capital. At the same time, every commercial enterprise must have constituent documents established by the owner.

Accounting financial statements have a special principle of compilation and publication. Its value lies in the economy, timeliness, reliability, in accordance with the established procedure for design, integrity and publicity. Changes in accounting policy are required to be introduced at the beginning of the fiscal year in order to maintain comparability of the data. If they are not available, then such accounting and financial statements need to be adjusted, in the course of which it is necessary to adhere to the provisions established by the regulatory accounting system. Methodological indicators should be unified. The reasons and specifics of the adjustment should be explained in the relevant note to the report and the balance sheet on financial results.

The financial statements contain: information on profit and loss, balance sheet, audit report, explanatory note and annexes. When compiling it, you must follow certain rules. First of all it should be remembered that the data on financial results and the position of the enterprise should be reliable and be provided in full. In the process of financial reporting, neutrality should be maintained, because it is required to be made in the interests of all users. In addition, it is important to follow the consistency of content and forms. Accounting financial statements are confirmed by an audit report.