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Financial Statements
From: “CA Services For Your Business” – Published by ICANS

Financial Statements: What’s In Them

It is management’s responsibility to prepare financial statements. But in some cases, organizations without financial expertise may engage the services of Chartered Accountants to prepare financial statements on their behalf. Fiscal year financial statements prepared for a company or other organization in accordance with Canadian generally accepted accounting principles (GAAP)* normally include:

• a balance sheet, which shows assets and liabilities at year end,
• a statement of income, which shows the results of operations for the year,
• a statement of retained earnings, which summarizes changes in equity during the year,
• a statement of cash flows, which shows operating, investing, and financing activities, and how these activities affect the cash position, and
• notes to financial statements, which are an integral part of financial statements, and which provide additional explanations and details concerning financial statement items.

As well, there may be schedules attached which can provide even more detailed information relating to items disclosed in the financial statements.

*Canadian generally accepted accounting principles are independent standards set by the CA profession for Canadian business.