Financial Reporting refers to the process of presenting financial information of a business entity to external stakeholders, such as investors, creditors, regulators, and the general public. It involves preparing and disseminating financial statements that accurately reflect the financial position, performance, and cash flows of the organization. Financial reporting is governed by Generally Accepted Accounting Principles (GAAP), which vary depending on the country or jurisdiction where the company operates. These principles provide a framework for accounting standards, policies, and procedures to ensure consistency, comparability, transparency, and reliability in financial reporting. Companies are required to adhere to the applicable GAAP standards when preparing their financial statements, which typically include the balance sheet, income statement, cash flow statement, and statement of changes in equity. Financial reporting plays a crucial role in providing stakeholders with relevant and timely information to assess the company's financial health, make informed decisions, and evaluate its performance and prospects.