- A Financial Statement is a written report that quantitatively summarizes the financial status of an organization for a stated period of time.
- A Financial Statement includes an income statement and balance sheet describing the flow of resources, profit or loss, and the distribution or retention of profits.
- A Financial Statement is a statutory requirement for every organization, irrespective of the kind and size, to prepare and maintain financial statements.
- An income statement is a financial statement containing the net income/net loss incurred by an organization during a particular period of time. It is also known as a Profit/Loss Statement.
- Net income/Net loss is calculated by adding all the revenues during a certain period and subtracting all the expenses incurred in the same period.
- An income statement usually contains Gross Revenue (Gross Sales), Costs of Goods sold, Returns and allowances, Selling, General and Administrative Expenses, Net Income (profit) or Net loss.
- A Balance Sheet is a very important financial statement depicting the financial position of an organization on a particular date.
- It lists the Assets (what the business owns) and Liabilities (what a business owes).
- The difference between the Assets and Liabilities is known as the Net Worth of the organization.
Cash Flow Statement
- A cash Flow Statement depicts an organization's cash position during a period of time.
- A cash Flow Statement has three categories: Financial Activities, Operating Activities and Investment Activities.
- A cash Flow Statement also depicts the increase or decrease in cash and also the percentage change on comparing the statements of two different periods.
- Mongolia' fiscal year end on 31 December
- The entities shall file their annual financial statements to the regulating agencies by 10th February.
- The entities shall file their quarterly financials by 20th of the following month (20th of April, July, October, January).
- The financial statements shall be prepared in accordance with ISA/IFRS.
- ISA/IFRSs can be adopted by interpreting them in the way that they reflect national specification.
"Our Financial Statement: Income
Statement, Balance Sheet, Cash Flow Statement"