Financial reports, we can also call it financial statements are formal records 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, which is relatively easy to understand. The four most important aspects required to compile a financial report structure are; a balance sheet, or statement of financial position, an income statement, a statement of changes in equity or statement of equity and a cash flow statement or cash flow statement activities.