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What Is Included in a Project Finance Report?

By D. Nelson
Updated: May 16, 2024

Financial analysts and project managers use project finance reports to learn about the standing of a business's individual projects. When reports reflect projects, they are concerned with specific goals that should be completed in limited periods of time. For example, the project finance report of a construction company might reflect only expenses and profits that accrue while constructing a single building. In the end, a good project finance report should inform professionals how much a project costs and which kind of profit they can expect it to generate.

A project finance report should also illustrate who provides funding, how much, and where funds are being applied. For example, a professional might find a chart on which are listed specific processes and pieces of equipment. In the next column there might be costs associated with each item. Depending on the status of a project, there might be a column for projected cost and another for actual cost thus far.

On the other side of the same chart, a person might find a list of investors or sponsors who provide funds for a project. This portion of a project finance report chart might also include the financial instrument used to provide funding, such as equity share. There also should be a proposed number, representing an ideal total of all funds from a particular source, and a number that represents total funds already collected.

Cash flow is another factor illustrated in a project finance report. This is a term that describes funds that a company has immediate access to and which can be used to make purchases. It is common for companies to gain access to cash by taking non-recourse loans, in which investors lend money in return for profits generated by a project. For example, if an individual lends money to a company that sells software, he or she receives repayment when software begins to generate profits.

Just as financial statements for whole organizations do, project finance reports include assets and liabilities. Assets are items that have value, such as equipment and real estate. It is common for assets to appear divided into several categories on a finance report. For example, fixed assets, such as financial instruments, might be separated from account balances that are not fixed, and which can be withdrawn at any time. Liabilities, on the other hand, are sums that an organization owes. All assets and liabilities on a project finance report pertain specifically to a project, as opposed to an entire operation.

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