Financial Documents

• Comprehensive Income Statement


  A historical record of the trading of a business in a given period
• Purpose of the CIS

  -Shareholders see if the firm makes an acceptable return

  -Identify if the profits are sustainable

  -Compare with other firms

  -Shows it can pay its loans

  -Satisfy the legal requirement of having a CIS
• Statement of Financial Position


  A statement that shows the assets, liabilities, and equity of a business at a specific point in time.
• Purpose of Financial Position Statement

  -Overview of assets and liabilities to assess the health of the firm

  -Assess liquidity

  -Aid investor/ creditor decisions

  -Compare to previous periods to check performance

  -Calculate ratios risk/ performance