Glossary
Annual financial statements (AFS)
The yearly set of financial statements for a whole entity, prepared under an accounting framework and, where required, audited.
Annual financial statements (AFS) are the formal yearly report of an entity's financial position and performance. They cover the whole entity, whether a company, a partnership, a trust or a non-profit organisation.
A typical set of AFS includes:
- a statement of financial position (the balance sheet)
- a statement of income, or of comprehensive income
- a statement of changes in equity, or in funds for a non-profit
- a statement of cash flows
- notes, including accounting policies
AFS are prepared under an accounting framework. For many small and medium-sized entities that framework is IFRS for SMEs, but the right framework depends on the law, the entity's constitution and the needs of lenders or funders.
Where an audit is required, the auditor gives an opinion on the AFS. The audit is planned around a prepared-by-client (PBC) list, which sets out the schedules and documents the entity prepares to support the figures.
AFS are different from management accounts, which are internal, and from donor reports, which cover one grant for the donor's chosen period.
Any filing deadlines that apply to your entity will be confirmed with you by the firm.
This entry is general information, not professional advice.