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Annual report

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An Annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are required by publicly traded companies, but some small businesses with multiple owners provide their shareholders with a form of annual reports.

The information annual reports contain must be accurate, but they are not the legal document that serves as the official report of the annual performance of a publicly traded company. In the United States, publicly-traded companies must submit a more-detailed version of the report, called a Form 10-K, to the U.S. Securities and Exchange Commission.

Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance.


[edit] Typical contents of an annual report

The following types of content can typically be found in an annual report of a large, publicly traded, company. They can be adapted for smaller, privately held companies who wish to prepare an annual report for shareholders or employees.

[edit] General information

  • Chairman's report
  • CEO's report
  • Auditor's report on corporate governance
  • Mission statement
  • Corporate governance statement of compliance
  • Statement of directors' responsibilities
  • Review of year's activities, initiative, challenges and successes

[edit] Financial statements

  • Auditor's report on the financial statements
  • Balance sheet
  • Statement of retained earnings
  • Income statement
  • Cash flow statement
  • Notes to the financial statements
  • Accounting policies

Other information deemed relevant to stakeholders may be included, such as a report on operations for manufacturing firms or corporate social responsibility reports for companies with environmentally- or socially-sensitive operations.

[edit] See also