Financial accounts
Financial accounts are the financial statements and supporting accounting information prepared to report an entity’s financial position, performance and cash flows. They summarise transactions using accounting policies rather than reproducing every ledger entry. General purpose statements primarily serve users who cannot demand tailored reports, including existing and potential investors, lenders and other creditors.
Worked example
A company prepares a statement of financial position, profit or loss and other comprehensive income, changes in equity, cash flows and explanatory notes.
Common mistake
Financial accounts differ from management accounts prepared for internal decisions; an accrual profit is not the same as cash generated.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | F2 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA2 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: Financial statements