Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Questions - Page 22: 2


The difference between financial statements and financial reporting is the fact that; financial statements basically presents the results outcomes of operations as well the financial position of a company. On the other hand, financial reporting involves the process of producing statements that normally disclose the financial status of an organization to both internal and external parties and more so the management, government and investors.

Work Step by Step

Similarly, financial statements are made up of four basic financial statements including; balance sheets, income statements, cash flow statements and statements of changes in equity. Financial reporting on the other hand is made up of annual reports, prospectuses, management forecasts/plans, descriptions of a firms environmental and social impacts etc.
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