Corporate annual report

A corporate annual report is a comprehensive report prepared throughout the preceding year. These reports are prepared to give the shareholders and other interested people information about the company’s activities and financial performance. A corporate annual report comprises of many other individual reports like chairperson’s report, director’s report, auditor’s report, etc. Let me explain in brief what these individual reports contain.
Chairperson’s report: This report gives an overview of trading year, strategies, financial performance, future prospects and the performance details over the past years.
Director’s report: This report contains description of the principle activities of the company with names of Directors and their interests are shown in this report. Employee statistics and the fair review of current and future prospects of the business are also shown in this report.
Auditor’s report: Auditors are independent accountants who are registered to carry out this work. They have to certify that the accounts are drawn up in accordance with the requirements of company’s activities. Auditors make a brief report to confirm that the accounts give true and fair view of firm’s financial position.
Balance sheet: A balance sheet gives account of a firm’s assets and liabilities.
Profit and loss account: This report gives complete information regarding the profits and losses of a company over the past years.
Cash flow statement: This statement shows the flow of cash in and out of the business into various operating, investing and financing activities. It is not same as profit and loss account as it only records movement of cash in various activities.
Operating and financial review statement: This statement in the annual report provides formalized structured explanation of financial performance. The operating review covers items such as operating results, profits and dividends. The financial review discusses items such as capital structure and treasury policies.

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