Financial Statements is a term that is used for comprehensive designation of mandatory statements showing a basic financial situation.
Basic financial statements are:
Exact form and structure of financial statements may differ from one State to another - it is given by the relevant applicable accounting regulations of the state or relevant accounting standards. For companies with publicly-traded securities in the European Union, IAS/IFRS is applicable and in the United US GAAP is applicable.
Use of the financial statements in practice: Financial statements are the basic inputs for a financial analysis of the enterprise for which the CFO is usually responsible. Financial statements, balance sheet and income statement are the mandatory parts of the financial report of the enterprise.