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 income statement reports, for a certain interval the net assets generated through business operations (revenues), the net assets consumed(the expenses) and the net incomeIntermediate 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 income statement reports, for a certain interval, the net assets generated through business operations (revenues), the net assets consumed (the expenses), and the net income