InvestorQ : What are Abridged financial statements in mutual funds?
divya Sing made post

What are Abridged financial statements in mutual funds?

Answer
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vani Patil answered.
3 weeks ago


I think you mean Abridged annual reports. Abridged financial statements are condensed financial statements that cover a full accounting period but omit detailed financial inputs. It is a shorter form of normal financial statements. The only major difference is, major sub-categories and schedules are not provided.

All details are mentioned under broad categories like revenue, expenditure, taxes, interest, so on. Subheads like fuel, power, maintenance, distribution, selling, etc. expenses are omitted and are given as one single head of expenditure. In cases where the financials are yet to be approved by a parent, abridged audited results are provided.

In other cases, it is provided where the investor or the user needs to get a broad view of the financials of the company. In the case of mutual funds, too, it means they omit granular data and focus on the broad categories.