Financial reporting is the process of producing statements that disclose an organization's financial status to management, investors, and regulators. These reports typically include the balance sheet, income statement, and cash flow statement, which provide insights into the company's performance and financial health. The primary purpose of financial reporting is to provide stakeholders with relevant information for decision-making. Accurate and timely financial reports help investors assess the viability of an investment, while management uses this data to strategize and improve operations. Compliance with GAAP or IFRS standards is essential for maintaining transparency and trust.