The cash flow statement This document tracks the company's…
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The cash flow statement
This document tracks the company's cash movements. It distinguishes between flows related to operating activities (sales, supplier payments), investments (purchasing or selling assets), and financing (loans, dividends). It shows whether the company actually generates cash or if it depends on external financing.
Notes to the financial statements
These provide essential details: accounting methods used, off-balance-sheet commitments (such as guarantees given), or events that occurred after the reporting period. They provide context and prevent a purely literal interpretation of the figures.
Who uses financial statements
Various stakeholders use them:
Investors to assess profitability and decide whether to buy or sell shares.
Creditors to evaluate creditworthiness before granting a loan.
Tax authorities to verify the tax base.
Employees and managers to monitor performance and guide strategy.
In summary, these documents are not just legal obligations: they constitute a tool for financial management and communication.
This document tracks the company's cash movements. It distinguishes between flows related to operating activities (sales, supplier payments), investments (purchasing or selling assets), and financing (loans, dividends). It shows whether the company actually generates cash or if it depends on external financing.
Notes to the financial statements
These provide essential details: accounting methods used, off-balance-sheet commitments (such as guarantees given), or events that occurred after the reporting period. They provide context and prevent a purely literal interpretation of the figures.
Who uses financial statements
Various stakeholders use them:
Investors to assess profitability and decide whether to buy or sell shares.
Creditors to evaluate creditworthiness before granting a loan.
Tax authorities to verify the tax base.
Employees and managers to monitor performance and guide strategy.
In summary, these documents are not just legal obligations: they constitute a tool for financial management and communication.
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