Chapter 17, Problem 1QS

To determine

FINANCIAL STATEMENT:

Financial Statements are formal record of the company that represents the management of funds entrusted to the company by its stockholders and lenders and its current financial position.

FINANCIAL REPORTING:

Financial reporting refers to the disclosure of financial statements of the company in a standard format that are useful for stakeholders for the process of decision-making.

To state:

The items that are not included as a part of general-purpose financial statements but are part of financial reporting.

Answer to Problem 1QS

c. Shareholders' meetings

e. Company news releases

g. Stock price information and analysis

i. Management discussion and analysis of financial performance

Explanation of Solution

The explanation to the answers is described as follows:

1. Income Statement: The general purpose financial statement that shows the revenues and expenses generated by the company over the entire reporting period and are prepared to determine the financial position of the company refers to an Income Statement.
2. Balance Sheet: The general purpose financial statement that reports the total assets, total liabilities and owner's equity of the business refers to a balance sheet.
3. Shareholders' Meetings: The shareholders' meeting report or minutes contains details of all business transacted and discussed at the meeting.
4. Financial Statement notes: The footnotes that contains additional information about the performance and financial position of the company refers to financial statement notes. These are integral part of financial statements and are included in the financial statements presented under all general purpose financial statements.
5. Company news releases: The news release of the company contains details of periodical earnings and related information that influence the investors.
6. Statement of cash flows: The general purpose financial statement that measures the cash inflow and cash outflow of the company for a given period refers to cash flow statement.
7. Stock price information and analysis: This report is important for investors to make decision making process for trading as it contains details of evaluation of trading instruments.
8. Statement of shareholder's equity: The general purpose financial statement that describes or explains the changes in regard to shares, total equity and ownership over the time period that are shown in the equity section of the balance sheet refers to statement of shareholder's equity.
9. Management discussion and analysis of financial performance: This report provide an overview of past performance of the company and its current financial position and also the future projections thereby facilitating comparison to its stakeholders.

Hence from the above explanation, the income statement, balance sheet, statement of cash flow and statement of shareholder's equity are part of general purpose financial statements and notes to financial statements are an integral part of financial statements.

Therefore the other statements are considered to be not included as a part of general-purpose financial statements but are part of financial reporting.