Annual reporting.

What is: 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, including the following:

  • Chairman's report, CEO's report , Auditor's report on the financial statements
  • Balance sheet, Income statement, Notes to the financial statements
  • Mission statement, Accounting policies, Corporate governance statement of compliance

The details provided in the annual report are of use to investors in gaining an understanding of the company's financial position and future direction. It therefore can have some influence on the stock price.

Please note, that the information required in annual reporting varies from country to country. Large coorporations usually have adopted what is known as corporate governance rules for the annual report, and therefore offer a high degree of information and conformaty in the report.

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