What is an annual report?
An annual report summarises a company’s financial performance and activities over a 12 month period. It includes financial statements, management commentary, and audit information.
What is included in an annual report?
Common components include:
• Financial statements
• Management discussion
• Auditor’s report
• Business performance highlights
Why are annual reports important?
They provide transparency to shareholders, regulators, and investors. They support decision making and demonstrate financial health.
Who prepares an annual report?
Management prepares the report, often with input from accountants and auditors. Public companies must meet strict reporting standards.
Are annual reports mandatory?
Public companies must produce annual reports. Private companies often produce them for tax and internal reporting purposes.