An annual report is a comprehensive

report A report is a document or a statement that presents information in an organized format for a specific audience and purpose. Although summaries of reports may be delivered orally, complete reports are usually given in the form of written documen ...

on a company's activities throughout the preceding

year A year is a unit of time based on how long it takes the Earth to orbit the Sun. In scientific use, the tropical year (approximately 365 Synodic day, solar days, 5 hours, 48 minutes, 45 seconds) and the sidereal year (about 20 minutes longer) ...

. 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 Grey literature (or gray literature) is material and research produced by organizations outside of the traditional publishing, commercial or academic publishing and distribution channels. Common grey literature publication types include reports (a ...

. 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).

Content

Typical annual reports may include: * General corporate information * Operating and financial review * Director's Report * Corporate governance information * Chairpersons statement * Auditor's report *

Sustainability Sustainability is a social goal for people to co-exist on Earth over a long period of time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions (or pillars): env ...

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 The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

, 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.

Directors' Role

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. 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...

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.

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.

'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.The True Cost Of Chevron, An Alternative Annual Report, May 2011 http://truecostofchevron.com/2011-alternative-annual-report.pdf Retrieved 19 July 2017

References

External links

How to Efficiently Read an Annual Report
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by CNBC
Archive of Annual Reports
Internet Archive {{Authority control Financial statements Grey literature Annual publications Reports