TYPES OF FINANCIAL

STATEMENTS
PREPARED: MR. JUAN LUCAS C. GARCIA
Learning Objectives:
• To enumerate the different types of financial
statements
• To have an overview of the types of financial
statements
• To know the importance of each of the financial
statements
TYPES OF FINANCIAL STATEMENTS
There are 5 types of Financial Statements, namely:

1. Statement of Financial Position (also known as

Balance Sheet)
2. Statement of Comprehensive Income (a more
complex Income Statement)
3. Statement of Changes in Equity
4. Statement of Cash Flows
5. Notes to Financial Statements
STATEMENT OF FINANCIAL POSITION

• It is formerly known as the Balance Sheet.

• It presents the financial position of a company at a
given date.
• It helps users of financial statements to assess the
financial soundness in terms of liquidity risk;
financial risk, credit risk, and business risk.
• It comprised of three main components
o Assets
o Liabilities
o Capital / Equity
STATEMENT OF FINANCIAL POSITION
STATEMENT OF COMPREHENSIVE INCOME

• It is a statement which reflects the change in

equity (net assets) of a business enterprise from
transactions and other events.
• It reflects the difference between the revenues
and expenses of a company for a certain period
of time.
• It also shows when the business has earned an
income or has incurred a loss.
STATEMENT OF COMPREHENSIVE INCOME
STATEMENT OF CHANGES IN EQUITY

• It presents the changes of owner’s equity during

an accounting period.
• It shows the flow of the equity which includes any
additional investment or any withdrawals made by
the owner.
• It also reflects the change in equity through the
operations of the business.
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
• It shows the flow of cash during an accounting
period.
• It has 3 major activities:
- Operating
- Investing
- Financing
STATEMENT OF CASH FLOWS
NOTES TO FINANCIAL STATEMENTS
• These are also referred as footnotes.
• These pertains to a provision of additional
information pertaining to the other financial
statements.
• These are required by the full disclosure principle.