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Historical financial statement. A financial statement (or financial report) is a formal record of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand.istorical financial statement. A financial statement (or financial report) is a formal record of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand.
Materiality Concept. Financial statements are prepared to help its users in making economic decisions. All such information which can be reasonably expected to affect decisions of the users of financial statements is material and this property of information is called materiality.