What is the difference between an income statement and financial statement?

Answer 1

Financial report means any report about monitory matters. In other words a financial report is about the transactions that have financial effects. To run a business financial reports play important role as relevant financial information is transmitted to relevant users inside and outside the entity to help them in making decisions. For example; bank statement, aged debtors analysis report etc.

Some financial statements are prepared on regular basis at equal intervals and some are prepared as and when needed. Some financial reports are meant only for management and some are communicated to people outside the entity as well.

Financial statements on the other hand are also financial reports. But in the business and accounting the term financial statement has more of a formal status.

Usually financial statements refer to either a statement included in the complete set of general purpose financial statements or a complete set of general purpose financial statements. And due the same reason whenever the term financial statement is used, it is often assumed that a report is about entity's financial position, financial performance, cash flows or fluctuations in equity.

The term financial statement is usually used for all or any of the following statements:

• Statement of financial position
• Statement of Comprehensive Income or Income Statement
• Statement of Cash Flows
• Statement of Changes in Equity

As said earlier that financial statements are in fact financial reports but presented following a certain set of instructions as given by applicable financial reporting framework. For example International Financial Reporting Standards.

Majority of financial reports for internal purposes have such format or presentation rules that are set by the management or the user himself and sometimes no particular format is followed. In addition to that some financial reports are prepared on regular basis after equal intervals and some are prepared only when they are needed and are named as contingency reports. Financial statements are one of such reports that are prepared on regular basis as specific entities are required to do so according to applicable laws.

In the end, again there is no difference between the terms financial statement and financial report. But their usual interpretation and meaning in the financial and accountancy world is somewhat different.

Answer 2

An annual report includes a great deal of information, including financial statements. The financial statements are just the numbers - the annual profit or loss and the current financial position. The annual report might also include details about new products or markets, plans for future development, bios on the directors and management team, etc. If the company is public, there is mandatory information which must be included in accordance with SEC regulations.

Answer 3

An income statement is a type of financial statement.

There are four financial statements that companies typically release on an annual basis:

The Balance Sheet: Basically a snapshot of the company's financial position at a certain point in time. It states the book value of all of the company's assets, liabilities, and stockholder's equity.

Income (Profit and Loss) Statement: The income statement essentially shows the results from operations for a particular period. It shows revenues earned, the corresponding expenses, gains and losses, interest, tax expense, etc., to reach the final figure of Net Income.

Statement of Cash Flows: This statement shows the cash going in and out of the firm. It is divided into three areas. Cash flows from operating activities, cash flows from financing activities, and cash flows from investing activities.

Statement of Retained Earnings: Based off net income and dividends paid, this statement will tell you how much of the current year earnings is being reinvested into the firm.

Answer 4

I think annual report means the whole report ( include work, progress, finance, development) after the end of year ( December) . Financial report means the financial report of 12 months which is submitted on 31st March.