simplified financial statements

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Simplified versions of the annual accounts and report intended for readers who do not possess sophisticated financial knowledge. The financial information may be made easier to understand by using simple terminology, showing the information in the forms of graphs and diagrams, providing fuller explanations, and reducing the amount of information. One form of simplified financial statement is the employee report, which is intended for employees and not covered by legislation; another form is the summary financial statement intended for shareholders and subject to legislation. See also understandability.

Subjects: Financial Institutions and Services — Accounting.

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