What is an Annual Report

Published on December 2016 | Categories: Documents | Downloads: 22 | Comments: 0 | Views: 96
of 1
Download PDF   Embed   Report

Comments

Content

What is an Annual Report?
Publicly traded companies that meet certain criteria are required to file financial reports with the Securities and Exchange Commission (SEC). Of the many report types, the investor population is most familiar with the 10-K, a document that is filed annually and is sometimes referred to as a company's annual report. Because the 10-K includes a tremendous amount of detail and legal jargon, most companies also produce a more reader-friendly annual report that typically contains product information, photographs, charts, a letter from the CEO, and other company and financial data. More than 10,300 of these colorful electronic publications are listed on the IRIN site. Why would I read an Annual Report? Most investors consider the annual report to be the most useful and credible tool for gaining a comprehensive overview of a company. It is one of the most critical documents that a company produces and is often the primary document used by investors when researching a company. It provides details about the financial condition of the company, and offers insight into the details of its business, as well as its management philosophy. According to a survey by Research Strategy Management, Inc., 91 percent of investors indicate that a company's annual report is the most credible source of information about that company. Billionaire investor Warren Buffet stated that nearly everything he learns about a company comes from public documents. And according to research conducted by Shelley Taylor & Associates, of the 26 sources of information that investors can rely on to make financial decisions, the annual report is ranked as one of the top five. What content is included in an Annual Report? The content in annual reports is unique to each company. Whereas the 10-K that companies file with the SEC must include specific items and adhere to stringent guidelines, the content that companies select to include in their annual report varies from company to company, and from year to year. Investors usually can expect to find the following items in a company's annual report:
y y y y y y y

A summary of the previous year Information about the company, including its structure, product line, and subsidiaries A letter to shareholders from the President or CEO A detailed discussion about the company's financial results The financial statements (balance sheet, income statement, and cash flow statement) Notes to the financial statements Other information about the company that often is not included in other documents.

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close