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Dispensa tion of V year Business Administration 1. THE FINANCIAL STATEMENTS THE FUNCTIONS OF THE FINANCIAL STATEMENTS The annual financial statements are an accounting document drawn up by the administrative bodies at the end of the administrative period, with which the company's equity and financial situation is represented at the end of the administrative period and the economic result for the period. The financial statements perform the following functions: · is an administrative document that links past management to future management; · is a tool for company directors to gain insight into management and its results; · is a tool for communicating economic, financial and asset-related information to a wide range of parties who, in various ways, are interested in the company's performance. We can distinguish budget users (stakeholders) into two broad categories: - Those within the firm who have a direct interest, such as the owner or majority shareholders and employees. - People outside the company who have indirect interests, such as venture capitalists (minority shareholders), lenders, customers and suppliers, tax authorities and, in general, anyone with whom the company comes into contact. THE BUDGET INFORMATION SYSTEM The set of statements that make up the financial statements and its annexes is known as the budget information system and is composed of 1) From the f i n a n c i a l statements, consisting of the Balance Sheet, Income Statement and Notes to ...
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