Annual report

Short description: Yearly report on a company's activities

Part of a series on

Accounting

* Historical cost
* Constant purchasing power
* Management
* Tax

Major types

* Audit
* Budget
* Cost
* Forensic
* Financial
* Fund
* Governmental
* Management
* Social
* Tax

Key concepts

* Accounting period
* Accrual
* Constant purchasing power
* Economic entity
* Fair value
* Going concern
* Historical cost
* Matching principle
* Materiality
* Revenue recognition
* Unit of account

Selected accounts

* Assets
* Cash
* Cost of goods sold
* Depreciation / Amortization
* Equity
* Expenses
* Goodwill
* Liabilities
* Profit
* Revenue

Accounting standards

* Generally-accepted principles
* Generally-accepted auditing standards
* Convergence
* International Financial Reporting Standards
* International Standards on Auditing
* Management Accounting Principles

Financial statements

* Annual report
* Balance sheet
* Cash-flow
* Equity
* Income
* Management discussion
* Notes to the financial statements

Bookkeeping

* Bank reconciliation
* Debits and credits
* Double-entry system
* FIFO and LIFO
* Journal
* Ledger / General ledger
* T accounts
* Trial balance

Auditing

* Financial
* Internal
* Firms
* Report

People and organizations

* Accountants
* Accounting organizations
* Luca Pacioli

Development

* History
* Research
* Positive accounting
* Sarbanes–Oxley Act

* v
* t
* e

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. They may be considered as grey literature. 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 with issued shares publicly listed are also required to report at more frequent intervals (depending upon the rules of the stock exchange involved).

## Contents

* 1 Content
* 1.1 Directors' Role
* 1.2 Missed Report Penalty
* 2 History
* 3 'Alternative' annual reports
* 4 See also
* 5 References
* 6 External links

## Content

Typical annual reports may include:[1]

* General corporate information
* Operating and financial review
* Director's Report
* Corporate governance information
* Chairpersons statement
* Auditor's report
* Sustainability and ESG information
* Green annual report
* Contents: non-audited information
* Financial statements, including
* Balance sheet also known as Statement of Financial Position
* Income statement also known as profit and loss statement.
* Statement of changes in equity
* Cash flow statement
* Notes to the financial statements
* Accounting policies
* Independent assurance statements
* Other features

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.[2] 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.[3]

### Directors' Role

The examples and perspective in this section may not represent a worldwide view of the subject. You may improve this section, discuss the issue on the talk page, or create a new article, as appropriate. (June 2014) (Learn how and when to remove this template message)

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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 Law of the Republic of Ireland, including the accounting standards issued by the Accounting Standards Board and published by The Institute of Chartered Accountants. 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 judgements 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.

### Missed Report Penalty

Failing to submit an annual report within the designated deadline can result in serious legal and financial consequences for a company. For example, in Estonia, failing to meet this deadline can lead to penalties, including fines and, in more severe cases, the potential removal of the company from the register.[4]

## History

In 1903, US Steel published an annual report whose financial accuracy was certified by Price, Waterhouse & Co in what is known as the earliest modern corporate annual report.[5]

## 'Alternative' annual reports

Certain groups such as The True Cost Of Chevron Network have released 'alternative' annual reports as a way to highlight ongoing environmental destruction and/or human rights abuses committed by a particular company.[6]

## See also

* Form 10-K, the basic information required by the US Securities and Exchange Commission
* US corporate law
* Green annual report
* Grey literature

## References

1. ↑ Annual Report and Accounts - Contents http://tutor2u.net/business/accounts/annual-report-and-accounts-contents.htm
2. ↑ Dictionary of Finance and Investment Terms by John Downes and Jordon Elliot Goodman Barron 1995 ISBN 0-8120-9035-7 page 23
3. ↑ "Wrap Report Definition". AccountingTools. http://www.accountingtools.com/definition-wrap-report.
4. ↑ Nikiforov, Ilja. "Annual Report Submission in Estonia | Price from €150" (in en-US). https://www.eestifirma.ee/en/annual-report-for-estonian-companies/.
5. ↑ Wessel D. (2002). When Standards Are Unacceptable The Wall Street Journal
6. ↑ The True Cost Of Chevron, An Alternative Annual Report, May 2011 http://truecostofchevron.com/2011-alternative-annual-report.pdf Retrieved 19 July 2017

## External links

* How to Efficiently Read an Annual Report
* "How to Read a 10-K Like Warren Buffett" by CNBC
* Archive of Annual Reports, Internet Archive

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