Information in a Corporate Annual Report

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Information in a Corporate Annual Report

An annual report is a summary of how a business is doing. Here is what an annual report comprises:

  • A letter from the chairman on the high points of business in the past year, with predictions for the next year.
  • Its philosophy: a section that describes how the company does business.
  • An extensive report on each section of operations in the company. This portion of the report may describe the services or the products that the business offers.
  • Financial information that includes the profit and loss (P&L) statements and a balance sheet. The P&L describes income and expenses and gives the net profit for the year. The balance sheet describes assets and liabilities and compares them to the previous year. In this section, important information may be revealed in the footnotes. They may discuss current or pending lawsuits or government regulations that have an impact on company operations.
  • An auditor’s letter confirming that all the information provided in the report is accurate and has been certified by independent accountants.

Keep in mind that the public relations department of the company produces the annual reports. The reports should be very accurate and the information described in the best possible manner.