Get To Know More About Annual Financial Reports
The annual financial reports will be the essential documents at the end of the year. The stories are about the economic conditions and the operations taken of a company. They are usually shared with the stakeholders annually. The reports are prepared and provided by the public corporations that are chosen to do financial reporting.
What Are Usually In the Annual Financial Reports?
The reports have two parts that contain different things to describe the financial conditions of a company. They are the front part and the back part. The front part is about the combination of the photos, graphics, and the narrative of them, which elaborate on the activities done by the company over the past year.
For the back part of the annual financial reports, it is about the business conditions in detail and the operational information as well. Do you want to know more about the sections of the stories so that you’ll understand better?
1. The sections of the annual financial reports
The regular reports of annual financial usually contain several things such as:
- Information about the company in general
- The highlights of the operation and the finance of the company
- The CEO letter which is addressed to the stakeholders
- The narration of the graphics, photos, and the text
- The discussion of the management and the analysis as well
- The financial statements of the company
- The notes for the financial statements
- The report of the auditor
- The financial data summary and the accounting policies
2. The use of the annual financial reports
There are several things you can get when you compose the reports. They are:
- They are to measure the ability of a company to pay the debts
- The reports can show and describe the profit and the loss of a company in a previous fiscal year
- They could measure the growth of a company over the years
- They tell the readers about the total earnings of a company to grow the operations
- The reports also estimate the proportion of the expenses taken by a company
- They could determine whether the information encounter the generally accepted accounting principles or not
The annual financial reports are the documents a company provides to describe the economic conditions over a year to be published and shared with the stakeholders.