Financial statements are a structured representation of historical financial information, including related notes, intended to communicate an entity’s economic resources or obligations at a point in time in accordance with a financial reporting framework. The related notes ordinarily comprise a summary of significant accounting policies and other explanatory information.
Financial statements are a very important document for any business. They are not only required so that management and owners understand the operational results of the business they are needed by law by the South African Receiver of Revenue. In terms of the new CIPC requirements you will be required to submit your financial statements to them on an annual basis as well.