Financial statements are structured representations of a company's financial position, performance, and cash flow. They provide essential information to stakeholders such as investors, creditors, and management. The main components of financial statements include:

1. Balance Sheet: This statement presents a snapshot of a company's assets, liabilities, and equity at a specific point in time, reflecting its financial position.

2. Income Statement: Also known as the profit and loss statement, it shows a company's revenues, expenses, gains, and losses over a specified period, revealing its operating performance.

3. Cash Flow Statement: This statement tracks the inflows and outflows of cash and cash equivalents, categorizing them into operating, investing, and financing activities.

4. Statement of Changes in Equity: It details the changes in owners' equity during an accounting period, including profits, losses, and transactions affecting equity.

5. Notes to Financial Statements: These are essential disclosures that provide additional information on accounting policies, estimates, and other items that help understand the financial statements better.

These statements are prepared in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS), ensuring consistency and comparability across different entities.