Annual report is a report on company’s activity issued each year. Not every company issues an annual report and mostly such reports are issued by public companies or those that are preparing going public.
Normal annual report should include such parts:
- Auditor’s report
- Financial summary
- Company’s management report on activity including letter to shareholders
- Description of main events during the period
- Operating segments information and explanations on financial statements
- Market review (mostly advanced companies provide this one)
- Other important information on company
Usually annual report is available after financial results are confirmed by auditors. The most advanced companies provide this report in 2-3 month after the end of fiscal period, however, in some less developed countries it may take a half of year till annual report comes out (unaudited financial statements usually are available earlier than annual report).
Annual report is one of the most important documents for investors about the company while it provides full spectrum of information about the businesses and the corporation. Yet, annual reports of large companies have few hundreds of pages and it is not easy for inexperienced investors to screen trough those.
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