What are the types of financial statements?

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In India, every company which is listed on stock exchanges has to release every year broadly three types of financial statements. These financial statements tell us about the information about the company. These include all the details from assets to liabilities and complete details about the revenues Profit and losses.

These documents are to be mandatorily released by all the publicly listed companies as mandated by stock exchanges. These serve as a tool for the shareholders to understand the companies operations, its growth and also future prospects.

The following are the three types of financial statements released by the Publicly listed companies.

  1. Balance Sheet
  2. Income statement
  3. Cash flow statement

These financial statements released by the company are the one on which most of the analysts give their recommendations about stocks. These reports are so important that they make use understand the true picture of the company and hence invest in profitable and high growth companies.

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