Financial reporting is the process of producing statements that disclose an organization's financial status to stakeholders. These reports typically include the balance sheet, income statement, and cash flow statement, which provide insights into a company's assets, liabilities, revenues, and expenses. The primary purpose of financial reporting is to offer transparency and accountability, helping investors, creditors, and regulators make informed decisions. Accurate financial reports are essential for assessing a company's performance and ensuring compliance with accounting standards and regulations.