In financial reporting, primary statements are the main accounting statements required to be presented.
These normally include statements of:
- Financial position (balance sheet).
- Comprehensive income (profit or loss).
- Changes in equity.
- Cash flows.
The primary statements are supported by notes providing additional and more detailed financial information.
The names of the primary financial statements are not normally mandatory, and they also differ according the accounting regime under which an entity is reporting.
Comprehensive income and profit or loss
Comprehensive income includes both:
- Profit or loss for the period; and
- Other comprehensive income for the period.
(The statement of profit or loss is also known as the income statement.)
Many entities report their profit or loss and other comprehensive income in two separate statements.
In these cases, there are FIVE primary financial statements:
1. Financial position/balance sheet
2. Cash flow
3. Profit or loss/income statement
4. Other comprehensive income
5. Changes in equity
- Balance sheet
- Cash flow statement
- Financial reporting
- IAS 1
- Income statement
- International Accounting Standards (IAS)
- Primary financial statements (under IAS)
- Reporting entity
- Statement of cash flows
- Statement of changes in equity
- Statement of comprehensive income
- Statement of financial position
- Statement of profit or loss and other comprehensive income