Financial statements are critical for any real estate project requiring external financing, that is equity and/or debt. The financial/accounting statements provide an accounting picture of the firm's operations and financial position at present and in the future that is pro forma. The statements provide a common template with standard rules which demonstrate the operational performance for a real estate project. These statements all follow one of two forms: United States Generally Accepted Accounting Principles (US GAAP) or International Financial Reporting Standards (IFRS). The statements are the basis of most financial decisions for a project which includes equity and debt financing. The four financial statements are Balance Sheet, Income Statement, Statement of Cash Flow, and Statement of Retained Earnings. The audience for these statements is a myriad of individuals to include owners/sponsors, investors, lenders, managers, and eventual purchasers. In general, there are two accepted methods for developing financial statements: Cash Basis and Accrual Basis.