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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