According to the law "On Accounting N 113-XVI» Russian Federation, adopted in 2007, to organize the company financial reporting, which is part of the accounting shall its head.These requirements apply to all companies and organizations registered in the Russian territory.
Benefits Financial Statements
state is not without reason attaches great importance to this issue.After all, the regular and continuous financial reporting provides timely and error-free rendering of taxes and pay them to the budget.That in turn contributes to the successful functioning of the Non-manufacturing organizations.That means developing and gaining strength, and the state itself.
addition, systematic proper financial reporting contributes to the success of planning and business development of the company, which together with other companies having a positive impact on the development of the entire economy as a whole.
Having the opportunity to see a calculated monthly financial results, including the processing and systematization of the amounts of all conducted during this period of economic and financial transactions in terms of money, the director of the firm is able to correctly assess the financial condition of the company, as well as to plan further actions to promote their businessproject.
What's financial statements?
financial statements - a systematic set of financial results characterizing the financial position of the company for a certain period.She plans to be drawn up with the help of accounts in the accounting tables, journals, orders or other registers and provides financial indicators of the movement of goods or products, property, securities, and various, including tax, liabilities.
usefulness of financial statements is defined set of specific indicators.The main elements of the financial statements are groups or sections of accounting, such as assets, equity, liabilities, expenses, income, losses and profits.
net worth, assets and liabilities are indicative of existing property and money from the company, as well as sources of funding during the reporting period.Other elements reflect the financial and economic operations that led to the changes in shareholders' equity, and the assets and liabilities.Reflecting the changes in cash in all of these elements is done using the appropriate reporting forms.
financial statement
use types of reports is a recommendation.Therefore, the forms may be developed by the organization itself.RAS 4/99 sets out the general principles and requirements for them.In preparing the financial statements, the following types of it:
- statement of changes in fixed and working capital;
- the balance sheet of the enterprise;
- a report on the targeted use of funds;
- report reflecting the movement of funds;
- Annex to the balance sheet;
- income statement, describing the gains and losses.
is also worth noting that small businesses, whose duties do not include the audit reports do not represent the preparation of financial statements in Form N 3 (Statement of changes in equity), in the form of the N 4 (Statement of Cash Flows), inForm N 5 (Annex to the balance sheet) and an explanatory note.From all of the above it is considered a major report on the profit and loss account and the balance sheet.
