Definition

Noun: A formal record that summarizes the financial activities and position of a business, person, or other entity over a specific period or at a specific point in time. It is a structured presentation of financial data, primarily showing credits (inflows or sources of funds) and debits (outflows or uses of funds).

Usage

A financial statement is a key document in accounting and finance. It is used to communicate the financial health and performance of an entity to stakeholders such as investors, creditors, management, and regulators. It must be prepared according to established standards (e.g., GAAP or IFRS).

Examples

• The company's annual report includes a complete set of financial statements.
• Before approving the loan, the bank carefully reviewed the business's financial statement.
• The auditor's opinion confirms that the financial statement presents a true and fair view.
• Investors analyze the financial statement to make informed decisions.

Advanced Usage

• "To issue a financial statement": To formally release or publish this document.
  • The corporation is required to issue a financial statement quarterly.
• "Consolidated financial statement": A statement that combines the financial data of a parent company and its subsidiaries into one comprehensive report.
  • The holding company prepares a consolidated financial statement for the entire group.

Variants and Related Words

• Statement (n): In a financial context, this is often used as a shortened form of "financial statement." It can also refer to a specific type, such as an "income statement" or "bank statement."
• Financial Report (n): A broader term that may include financial statements along with management discussion and analysis.
• Balance Sheet (n): A specific type of financial statement showing assets, liabilities, and equity at a point in time.
• Income Statement (n): A specific type of financial statement showing revenues and expenses over a period.
• Cash Flow Statement (n): A specific type of financial statement showing cash inflows and outflows.

Synonyms

• Accounts
• Financial report
• Financial record
• Accounting statement

Related Phrases

• To prepare a financial statement: The act of compiling and calculating the data to create the document.
  • The accountant will prepare the financial statement for the fiscal year end.
• To file a financial statement: To submit it to a regulatory or government body.
  • Public companies must file their financial statement with the Securities and Exchange Commission.

Noun

1. a document showing credits and debits