Definition - What does Financial Reports mean?
Financial reports refer to the formal representation or records of the financial activities of any business, organization, person or any other entity.
Typically, there are four basic statements that form the basis of financial reports. These statements are the income statement, balance sheet, cash flow statement and statement of retained earnings.
In terms of the law, these are the papers through which a court requires a particular party to disclose its monthly expenses and income.
Justipedia explains Financial Reports
The court usually requires divorcing parties to fill out and sign a financial statement, on the basis of which the court decides on matters like child support, alimony, etc.
The financial information of a company is not only necessary for its managers, but there are also other parties like shareholders, government agencies, etc. that require the current and actual financial position of a company. The main aim of financial reports or statements is to provide the true financial position of the company at any given time.