Financial statement and Financial Analysis – An overview

Financial Information is the basis for financial planning, analysis and decision-making. It is also useful to different users who are either directly or indirectly interested in firm. Owners of firm, managers, creditors, investors, employees and tax authorities are direct users, whereas, financial analyst, researchers and trade organization are indirect users. A firm communicates financial information to these users through financial statements and report. Financial statements contain summarized information of the firm’s financial affairs organized systematically. Therefore in the present descriptive paper, the author has tried to present theoretical concepts of financial statement, financial analysis and relationship between financial analysis.