The fundamental aim of a given annual report is to disclose the cash-flow of a given organization. For instance, in a profit-based organization, the yearly report reveals how the organization is handling money to pull in possible investors. On the other hand, non-profit organizations concentrate more on the little money they need to spend in operations and the amount they inject into programs and services to assist in improving a community and give support for those who are in need.
Aims and goals
For a non-profit organization, they concentrate more on offering a broader administration to people in need. On the other hand, the profit organization varies aims, provide useful items, focusing on getting high assets, and bring in some potential financial supporters.
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Letters and accomplishment
For a non-profit organization, the yearly reports begin with a letter from the CEO that majors on the company's previous years and highlights some public recognized hardships the company has maneuvered. Their reports remind the person reading the report of the company's aims and concentrate on facts regarding the number of people who have gained from research, projects, and administration.
Addressing the compliance of the GAS from non-profit as well as the financial statement
The administration is mainly in control of preparing and reasoning on an excellent presentation of the substantial financial statements based on the account standards broadly accepted ( United States, 2018) . They should be free from misquoted either through any misrepresentation or standard errors. The report aims to analyze the extent to which testing of the internal control over financial reports and adherence, possible consequences of the measurement while being careful not to present opinions regarding the internal control against financial reports or the adherence.
B) While analyzing the profit organization, there are financial ratios, for instance, the profitability sustainable, operational efficiency ratios, but liquidity is employs as tools. On the other hand, non-profit and government organizations use financial inclinations, the hardships incurred, and possible prospects, which are the primary guideline ( Coe, 2007) .
C) Examples of financial statements
ZYZ CORPORATION
STATEMENTS OF FINANCIAL POSITION
DECEMBER 30, 2019
ASSETS
Cash and cash equivalents _
Short-term investments _
Accounts receivable _
Prepaid expenses _
Absolute promise to give _
Cash controlled to purchase of equipment _
Long-term investments _
Aid receivable—charitable lead trust _
Payments on rented and other property _
Property and equipment _
LIABILITIES
Accounts payable _
Reimbursement _
Refundable advances _
Long-term debt _
TOTAL LIABILITIES
NET ASSETS
Clear Selected for new program growth
Undesignated
Temporarily controlled
Permanently controlled
TOTAL NET ASSETS
TOTAL LIABILITIES AND NET ASSETS
References
United States. (2018). Government auditing standards .
Coe, C. K. (2007). Governmental and Nonprofit Financial Management . Oakland: Berrett-Koehler Publishers, Incorporated.
