Contents of Annual Reports

An annual report of company is similar to report card which students get when they are in school, while the report card of school gives information about the performance or non performance of a student during the year, annual report reveals whether the company has performed or not during a financial year. Given below are the contents which annual report should have –

  1. Balance sheet of the company, revealing the financial position of the company.
  2. Profit and Loss account of the company showing the profitability of the company during the financial year.
  3. Cash flow statement which show the cash position of the company for the year.
  4. Notes to financial statements explaining significant transactions which have happened in the past financial year
  5. Auditors report to the shareholders of the company regarding the financial statements and corporate governance of the company.
  6. Chairman or CEO report to the shareholders and directors of the company.

Apart from above contents there can be additional contents which can be included in the annual report depending on the regulations which are imposed by government and also the country in which company is operating.

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