Intermediate Accounting 1 The Environment of Financial Reporting Financial Reporting Financial reporting is the process of communicating financial accounting information about a company to external users The balance sheet reports, as of a certain point in time, the resources of a company ( the assets), the company' s obligations (the liabilities), and the equity of the ownersIntermediate Accounting 1 The Environment of Financial Reporting Financial Reporting Financial reporting is the process of communicating financial accounting information about a company to external users. The balance sheet reports, as of a certain point in time, the resources of a company (the assets), the company’s obligations (the liabilities), and the equity of the owners