In This Chapter
Reviewing the importance of financial reports
Exploring the different types of financial reporting
Discovering the key financial statements
Getting acquainted with the parts of the annual report
Looking at the three most important documents
Summing up the financial information
Financial reports give a snapshot of a company’s value at the end of a particular period, as well as a view of the company’s operations and whether it made a profit. The business world couldn’t function without financial reports. Yes, fewer scandals would be exposed because companies wouldn’t be tempted to paint false but pretty financial pictures, but you’d still need a way to gauge a firm’s financial health.
At this point in time, nothing’s available that can possibly replace financial reports. Nothing can be substituted that’d give investors, financial institutions, ...