what is an annual report

An annual report is a comprehensive report on a companys activities throughout the preceding year. It is a document that public corporations must provide annually to shareholders that describes their operations and financial conditions. The report is intended to give shareholders and other interested people information about the companys activities and financial performance. Annual reports became a regulatory requirement for public companies following the stock market crash of 1929 when lawmakers mandated standardized corporate financial reporting. The report often contains an impressive combination of graphics, photos, and an accompanying narrative, all of which chronicle the companys activities over the past year and may also make forecasts about the future of the company. The back part of the report contains detailed financial and operational information. An annual report for a publicly traded company typically contains highlights of the company’s activities and performance during the previous year, future goals and objectives, a letter to shareholders from the CEO or company president, an auditor’s report, and detailed financial statements. Financial information is often visually presented in graphs and tables. Annual reports can also be known as "business annual reports," "statements of information," or "yearly statements". Beyond the legal requirements, they also inform all interested parties about the financial success (or failure) of a public entity, private corporation, non-profit organization, or other business formation.