Financial statements - Essay Example

Financial ments Exposure to financial ments Being the employee of a large textile entity, I have experienced a relatively greater exposure to the financial statements. My job is related to the sale of yarn for which I have to check out the financial statements of the previous periods. The reason behind checking the financial statements is to make a comparison of the existing sales performance with the previous period’s performance. Not only this, I also need to know the costs associated with yarn sales.

Role for preparation of financial statementsDue to integration of various departments in my organization, I closely work with accounts and finance department which is mainly responsible for the preparation of financial statements. They have the duty of recording, analyzing, summarizing and reporting the financial performance and position of the company to both internal and external users of financial statements. Being sales department personnel, I work on generating invoices for the customers, sales tax return and other documentation in collaboration with accounts and finance department of the company.

Information used in financial statementsThe financial statements of my organization provide various sorts of financial information. Fundamentally, it shows the financial position of my organization through balance sheet. Financial performance of my organization is disclosed through statement of comprehensive income. The activities relating to cash inflows and outflows are reflected through statement of cash flows. Statement of changes in equity shows the information relating to changes in the equity ownership of the organization.

Last part of financial statement is “notes to the financial statements” which provide detailed workings and disclosures of accounting heads that are presented in other components of financial statements (Ramgopal, 2009).ReferencesRamagopal, C. (2009). Accounting for Managers, New Age International. Trident online library.