AFS 2025-26
1. What is an Annual Financial Statement (AFS)?
An Annual Financial Statement (AFS) is an official document that records the precise details of an organization's income, expenditure, assets, and liabilities for a financial year (from April 1 to March 31). It plays a crucial role in ensuring the financial transparency and accountability of an institution.
Key Components of AFS:
| Component | Description |
|---|---|
| Income & Expenditure Statement | Details the total income received by the organization in a year (taxes, fees, grants) and the total expenses incurred (salaries, project costs, maintenance). |
| Balance Sheet | Shows the organization's assets (buildings, land, bank deposits) and liabilities (loans, outstanding payables) as of a specific date. |
| Receipts & Payments Account | Records all cash received (Receipts) and cash disbursed (Payments) throughout the year. |
