What Documents Are Not Financial Statements?

An entity’s financial statements provide a historical summary of its financial performance and position over a specific period. These documents include the Balance Sheet, which shows assets, liabilities, and equity at a specific point in time. The Income Statement summarizes revenues and expenses, revealing profit or loss over a period, and the Cash Flow Statement details cash inflows and outflows from operating, investing, and financing activities. Many other important documents contain financial information but are not considered financial statements themselves.

Forward-Looking Financial Information

Documents that project future financial outcomes are distinct from historical financial statements. Budgets, for example, represent detailed plans outlining expected revenues and expenses for an upcoming period. Financial forecasts offer predictions of future performance based on current trends and economic assumptions. Pro forma financial statements present hypothetical scenarios, illustrating financial results under various assumed conditions or proposed transactions. These forward-looking tools serve planning and decision-making but do not reflect actual past performance.

Regulatory and Tax Filings

Documents prepared for specific regulatory or tax purposes differ from general-purpose financial statements. Tax returns, such as IRS Form 1120 for corporations or Form 1040 for individuals, are submitted to tax authorities to calculate tax obligations. These filings adhere to specific tax codes and regulations, which have different recognition and measurement rules compared to generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). Other regulatory filings may contain financial data tailored to specific compliance requirements, yet they are not comprehensive financial statements prepared for public or general stakeholder use.

Supplementary Reports and Disclosures

Some documents accompany or provide context to financial statements. The Management Discussion and Analysis (MD&A) section offers a narrative explanation of a company’s financial condition and results of operations. An independent auditor’s report presents the auditor’s opinion on whether the financial statements are presented fairly according to the applicable accounting framework. Footnotes to financial statements provide additional details, accounting policies, and explanations that clarify items presented within the main statements. These supplementary elements are important for a complete understanding but remain separate from the core financial statements.

Internal Operational Reports and Source Documents

Internal or foundational documents are not considered financial statements. Bank statements provide a record of transactions within a specific bank account, detailing deposits, withdrawals, and balances, rather than summarizing an entity’s overall financial position or performance. Source documents like invoices, receipts, and purchase orders record individual transactions and serve as the basis for accounting entries, but they are not aggregated financial summaries. Internal management reports, such as detailed sales analyses or departmental expense breakdowns, are created for specific internal decision-making. These reports are too granular or specific to serve as general-purpose financial statements for external users.