An annual report is a comprehensive report on a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested people information about the company's activities and financial performance. Most jurisdictions require companies to prepare and disclose annual reports, and many require the annual report to be filed at the company's registry. Companies listed on a stock exchange are also required to report at more frequent intervals (depending upon the rules of the stock exchange involved).
Typically annual reports will include :
- Accounting policies
- Balance sheet
- Cash flow statement
- Contents: non-audited information
- Profit and loss account
- Notes to the financial statements
- Chairpersons statement
- Directors’ Report
- Operating and financial review
- Other features
- Auditors report
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. In the case of larger companies, it is usually a sleek, colorful, high gloss publication.
The details provided in the report are of use to investors to understand the company's financial position and future direction. The financial statements are usually compiled in compliance with IFRS and/or the domestic GAAP, as well as domestic legislation (e.g. the SOX in the U.S.).
In the United States, a more-detailed version of the report, called a Form 10-K, is submitted to the U.S. Securities and Exchange Commission. A publicly held company may also issue a much more limited version of an annual report, which is known as a "wrap report." A wrap report is a Form 10-K with an annual report cover wrapped around it.
Statement of Directors’ responsibilities for the shareholders’ financial statements
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable Irish law and Generally Accepted Accounting Practice in Ireland including the accounting standards issued by the Accounting Standards Board and published by The Institute of Chartered Accountants in Ireland Irish company law requires the directors to prepare financial statements for each financial period which give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Directors are required to - select suitable accounting policies and then apply them consistently; - make judgments and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors confirm that they have complied with the above requirements in preparing the financial statements. The directors are responsible for keeping proper books of account that disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements are prepared in accordance with accounting standards generally accepted in Ireland and with Irish statute comprising the Companies Acts 1963 to 2009.
Famous quotes containing the words annual and/or report:
“No annual training or muster of soldiery, no celebration with its scarfs and banners, could import into the town a hundredth part of the annual splendor of our October. We have only to set the trees, or let them stand, and Nature will find the colored drapery,flags of all her nations, some of whose private signals hardly the botanist can read,while we walk under the triumphal arches of the elms.”
—Henry David Thoreau (18171862)
“In my utter impotence to test the authenticity of the report of my senses, to know whether the impressions they make on me correspond with outlying objects, what difference does it make, whether Orion is up there in heaven, or some god paints the image in the firmament of the soul?”
—Ralph Waldo Emerson (18031882)