The financial statements of a company is used to establish what the trend is the same, its entrances and exits, the movable and immovable assets. You must draw at the end of every year for managerial reasons , fiscal and legal. It must be true and accurate because it is based on that the company will pay taxes and how much due to the State . It is important documents and complicated of which we are going to take into consideration some notes .

The financial statements of a company or business is generally compiled by comparing two distinct sections: one column shows the activity data, while the other ones that make reference to the liabilities. For active data means all of the company’s assets and claims that it has accrued to customers and other companies. For passive data however, means that the company has debts to banks, companies and suppliers. Through these calculations we can calculate what is the value of the company and therefore its balance sheet. If, for example, the company should stop operating, you may calculate the amounts due to each member, based on their role and their part company in liquidation.

financial-statements

The Budget Report is also the only way that the members have to be informed of the progress of society. Similarly is very useful also for the creditors, so they can assess the balance sheet. This is also why the whole thing must be prepared in a simple and readable, as well as truthful. In addition to reporting the balance sheet, the budget will also present the income statement, a notes and a management report. They include a number of items, fixed by law, giving rise to a document neat and clear where each category is marked by a capital letter, then sorted into sub-categories classified by Roman numerals and then voices discriminated against by Arabic numerals. In the case of sub-items, they are classified by the lowercase letters of the alphabet.