1. Who are the recipients of financial statements?

2. Without information there is no (effective) management 4 steps of management planning – analysis motivation – how to motivate my personnel, by what means of motivation (e.g. wages) implementation – information about advancement of the project controlling – after implementation – real results of the project (profitable or not etc.)

3. 1.Management of the company (Board of Directors, managing directors, other personnel) 2.Investors (stockholders) 3.Stakeholders – banks, bondholders, lease comp., deliverers, 4.Tax office (HMRC – UK, IRS - USA, Tax Office – Poland) 5.Other government departments (chasing money laundering, terrorists org., mafia) 6.National (gov.) statistics office Who are recipients of financial statements?

4. Attributes of good reporting Objective Understandable for the reader (not only for the person who has prepared the report) Suitable (meets reader’s requirements for information) Comparable (statements are comparable with statements in the past (e.g. year to year, called a comparison in time) or our statement to the statement of our competitor (called a comparison in space) Reliable – assured by: competency of the person who prepares the statements, proper procedures of preparation of the statements, proper control: persons, procedures)

5. Annual Report of a company Balance sheet Profit and Loss Statement Cashflow Statement (in Poland only big companies) Information of changes in equity „Board of Directors information” (all the above are signed by the Board of Directors) Audit report (chartered accountants verify statements) a/a Prepared annually (obligatory) Are sent to the Register Court (obligatory) in this way they are made public