Annual Report

Business, Legal & Accounting Glossary

Definition: Annual Report


Quick Summary of Annual Report


A document produced each year by limited liability companies containing the accounting information required by law. Larger companies also provide information and pictures of the activities of the company.



What is the dictionary definition of Annual Report?

Dictionary Definition


Annual reports are formal financial statements that are published yearly and sent to company stockholders and various other interested parties.

An annual report is a comprehensive report on a company’s activities throughout the preceding year.

 


Full Definition of Annual Report


An annual report is a document which a company presents at its Annual General Meeting for approval by its shareholders. The report is made up of reports and of financial statements, which may include the following:

  • Chairman’s report
  • CEO’s report
  • Auditor’s report on corporate governance
  • Mission statement
  • Corporate governance statement of compliance
  • Statement of directors’ responsibilities
  • Invitation to the company’s AGM

as well as Financial Statements including:

  • 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 also be included, such as a report on operations for manufacturing firms. In the case of larger companies, it is usually a sleek, colourful, high gloss publication.

The details provided in the report are of use to investors in gaining an understanding of the company’s financial position and future direction. The financial statements are usually compiled in compliance with IFRSs and/or the domestic GAAP, as well as domestic legislation (e.g. the SOX in the U.S.).

United States

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.

An annual report is a document that the SEC requires all publicly-traded companies to provide to shareholders each fiscal year. The annual report contains a balance sheet, income statements, and a detailed description of the company’s business operations. The annual report also contains projections for the company’s future performance. A company must make its annual report available to interested parties. Very often an annual report is a very colourful, glossy brochure, but an annual report also refers to the required form 10-K. Form 10-K contains more detailed financial information than most annual reports. The form 10-K portion of a publicly-traded company’s annual report is available for free on the SEC’s website. A company’s annual report is often used to help make decisions about whether or not to invest in a company.


Synonyms For Annual Report


annual return, report annually, yearly report, annual review, annual reporting

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American Psychological Association (APA):
Annual Report. PayrollHeaven.com. Retrieved July 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/annual-report/

Definition Sources


Definitions for Annual Report are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 18th April, 2020 | 4 Views.