What are Financial Statements?
Financial Statements are a formal record of a company's financial activities for the previous year. They include a balance sheet, income statement (otherwise known as a Statement of Profit or Loss), and statement of retained earnings.
Annual Returns & Financial Statements
All corporations must complete financial statements each financial year. Typically accountants prepare a corporation’s financial statements. One or more directors are required to approve the financial statements by signing the financial statements. Once approved, the directors must provide the financial statements to the shareholders for their review and approval.
If your company is holding an annual meeting, then the financial statements must be provided to the shareholders at least 21 days before the annual meeting.
All corporations must appoint an auditor to audit the corporation's financial statements unless a resolution is signed by all voting and non-voting shareholders to not appoint an auditor. This is why a resolution is prepared for all shareholders to sign if they choose to forego an audit for the upcoming financial year.