Describe the term 'financial reporting'.

Financial reporting refers to the process of preparing and presenting financial statements that provide a summary of an entity's financial performance and position over a specific period. This aims to communicate essential financial information to users such as investors, creditors, regulators, and management. The financial statements typically include the balance sheet, income statement, and cash flow statement, which are prepared according to accounting principles and standards.

The purpose of financial reporting is to ensure transparency and facilitate informed decision-making by providing an accurate and comprehensive overview of the financial health of an organization. By adhering to established accounting standards, financial reporting helps maintain consistency and comparability across different entities and time periods.