Question

Research what information is required in the corporate annual report. Who requires it and why?

Answer 1

An annual report is a document required to be issued every year by all public companies.

It is typically required to contain the following information :

• General corporate information such as registered address, corporate address, details of auditors/registrars/custodians/bankers, details of business activity, authorized share capital etc.
• Letter to shareholders from CEO/Chairperson/President/Managing Director
• Auditors Report
• Board of Directors Report
• Management Discussion and Analysis
• Corporate Secretarial Report
• Operational and financial highlights
• Audited financial statements - Balance Sheet, Income Statement, Cash Flow Statement
• Notes to the financial statements
• Financial analysis - ratio analysis/industry benchmarking etc.
• Accounting policies applied

As public corporations are publicly held, they are required to publicly disclose their financial statements. They are required to file quarterly financial statements, as well as audited annual financial statements as well as the annual report with the jurisdictional companies regulator. As the public has an interest in the well-being of public companies, the public has an interest in their annual reports.

Investors in the companies also have an interest in the annual report as it discloses important information about the financial well-being and the prospects of the company

Other stakeholders such as suppliers and customers also have an interest in the annual report as it discloses important information about the financial health and prospects of the company